Our full lending criteria

We’ll arrange a desk valuation on any residential purchase or re-mortgage application with a LTV cap of 75%.

The property value is limited to £500,000 with a maximum loan size of £400,000.

It must be a house that is not listed, has no more than two storeys and has a standard construction.

For all other application types, a physical valuation is required.

Where the product allows for legal fee assistance, we use either Optima Legal or O’Neill Patient Solicitor (ONP).

Loan to value limits on residential purchases are: 

New purchase

The 95% should include any product fees. 

New build

The 95% should include any product fees.

Re-mortgage 

The 90% should include any product fees.

Debt consolidation on a capital repayment basis

The minimum repayment term is 5 years. We will consider a maximum term of 40 years.

If any element of the mortgage loan is interest only a maximum term of 25 years will be considered. 

We accept residential applications from applicants who are aged 18 or over. For buy to let or holiday let applications the minimum lending age is 21. 

All residential mortgages should be repaid on or before the eldest applicant’s 85th birthday.

If any element of the mortgage loan is interest only, the mortgage will need to be repaid on or before the eldest applicant’s 70th birthday. 

For buy to let or holiday let applications we consider a mortgage term until the eldest applicant’s 85th birthday.

Where the property is leasehold, the unexpired term of the lease at the start of the mortgage loan must be a minimum of 85 years.

Please search for 'lending into retirement' for more information. 

The product fee can be added to the loan as long as the total borrowing meets the affordability calculation and does not exceed the maximum LTV cap for the product.

All product fees are non-refundable and non-transferable.

Residential and buy to let mortgage and re-mortgage offers are valid for a 180 day period (6 months), except in the case of a new build purchase, where offers are valid for 240 days (8 months).

Capital raising is available for existing borrowers by way of further lending, Lifestyle Loan, or re-mortgage. This can help with house purchase, buy to let and further advances for home improvements, purchase of freehold and transfer of equity. 

We won’t lend on buy to lets for debt consolidation.

£5,000 is the minimum loan amount for a new residential mortgage advance.

£25,000 is the minimum loan amount for a new build, buy to let or holiday let.

If our standard variable rate increases or decreases, the discounted rate paid will also increase or decrease.

The standard variable rate will apply at the end of the fixed or discount period.

Overpayments are available on all non-flexible residential, buy to let and holiday let mortgages. 

The overpayment allowance is 10% of the outstanding balance as at January 1st every calendar year. 

Overpayments can be made regularly or as occasional lump sums.

Overpayments received above the annual allowance may incur an early repayment charge.

Supply teachers should provide 6 months proof of income.

For loans more than 75% LTV, the affordability calculator will use the average of the most recent 2 years income.

For loans up to 75%, it will use the most recent year’s income. 

Applicants who are:

• Limited Company Directors i.e. they have a 33% or greater shareholding should provide 2 years accounts or an accountants certificate prepared by an appropriately qualified accountant*. The most recent accounts must not be older than 18 months. We will accept salary and dividend income. 
• Sole Traders should provide 2 years HM Revenue & Customs (HMRC) tax calculations, SA302 or online tax assessments supported by the corresponding tax year overviews. The SA302 and assessments must show the customer’s name, tax year, unique tax reference (UTR) and HMRC logo.**
• Partners in a large firm with multiple partners should provide written confirmation of income from the company accountant, finance manager or managing director. **
• Labour only contractors should provide 1 years accounts. They should have been contracted to no more than 2 employers over the last 12 months.**
• Construction Industry Scheme (CIS) contractors will be treated as self-employed. Affordability is assessed using the most recent set of accounts. We will require 1 years self assessment, SA302 etc.**

**We will use net profit for affordability purposes.

*Accountants must have one of these qualifications from the relevant professional body. 

AAPA - Association of Authorised Public Accountants 
ACA - Association of the Institute of Chartered Accountants in England and Wales 
ACCA - Association of Chartered Certified Accountants 
ACMA - Association of Chartered Institute Management Accountants 
AIA - The Association of International Accountants 
CA - Institute of Chartered Accountants of Scotland 
CIMA - Chartered Institute of Management Accountants 
CIPFA - Chartered Institute of Public Finance Accountancy 
FCA - Fellow of Association of the Institute of Chartered Accountants 
FCCA - Fellow of Association of Chartered Certified Accountants 
FCMA - Fellow of the Chartered Institute of Management Accountants 
ICA - Institute of Chartered Accountants 

Day rate contractors should provide a copy of the latest contract which must show a minimum annual income of £50,000. 

Applicants must have a minimum of 2 years in the industry they currently work in.

To calculate the income, we use the day rate x number of days worked x 48 weeks.

Applicants must have been in permanent employment for the last 3 months and paying UK income tax.

Only income paid in sterling and subject to UK taxation will be considered.  

Please provide 1 month’s personal bank statement showing income and all bill payments. Alongside this, we require the most recent month’s payslip or most recent 4 pay slips (if paid weekly) or 2 payslips (if paid fortnightly). 

If the income is split over more than 1 account, we will need to see the additional 
account statements. All statements must include name, address and bank account number. 

Confirmation(s) of income must accompany all applications.

Variable income will only be included for affordability purposes if the applicant can show that the income is currently being paid and has been regularly paid over a period of time. 
 

Applicants with rental properties

We will only consider earned income or rental income for affordability (not both). 

Applicants paid in cash must show the full credit being paid into their bank account. 

Income categories considered include:

• Basic salary; 
• Regional and/or car allowance;
• Rent/mortgage allowance; 
• 100% of regular bonus (at least 2 consecutive years) or shift allowance; 
• 100% of Working Family Tax credit; 
• 100% income from a second job; and
• Pension from previous employer or widow/er’s pension.

We do not accept applications from apprentices.

 

Overtime

We’ll consider up to 100% of overtime income in our affordability calculations if it does not exceed regular income.
To make a decision we’ll need:
•    The latest 3 month’s monthly or weekly payslips and one full month bank statement showing the salary credit.
•    Information for both applicants if it's a joint application.
We will take an average of the lower overtime across the 3 months period.

Second job income

We'll consider up to 100% of second PAYE job income in our affordability calculations. 

To make a decision we’ll need:

• The latest monthly or weekly original payslip, or three months where income is variable, for both primary and secondary income; 
• One full month bank statement showing the salary credit; and 
• Proof of employment for at least 6 months. 

If there is a joint application, we’ll need the information for both applicants. 

When assessing the application, we’ll consider if the income can be maintained over a period of time. We’ll do this by looking at:

• The number of hours and number of days worked;
• Whether the salary is consistent with the type of employment; 
• The travel distance from home; and 
• How long your customer has held both jobs. 

If 100% of the second PAYE job income can be maintained, it will be included in the affordability calculation.

Medical professionals locums should provide 3 months proof of income e.g. invoices, remittance or pay slips with corresponding bank statements. We average and annualise the income shown.

Newly qualified medical students should provide their offer letter confirming their start date and salary.

We accept applicants employed on a fixed term contract providing the contract is for 12 months or more with 6 months or more remaining at the time of application.

First time contracts are acceptable. The applicant will need to provide 3 months of payslips.

Bank nurses should provide 6 months proof of income e.g. invoices, remittance or pay slips with corresponding bank statements. 

We average and annualise the income shown.

We consider non-regulated holiday let applications on an advised basis. 

We will accept applications from applicants who do not currently own and live in their own home.

Applicants: 

• Should be 21 years old or older
• Should have no more than 2 mortgaged holiday lets, whether in sole or joint names including the current application. 

There is no minimum income requirement.

The maximum LTV for a holiday let mortgage is 75% with the minimum property value and purchase price of £50,000 and a minimum loan size at £25,000.

For different lending scenarios, we will require as rental coverage:

If the application is a £4£ re-mortgage on a property purchased on a holiday lets basis before January 2017, we will require 125% @ 8.10% as rental coverage. 
If the application is a £4£ re-mortgage on a property purchased on a holiday lets basis after January 2017, we will require 145% @ 8.10% as rental coverage.

Rental income is calculated using an average of the projected low, mid and high season weekly rental yields.

This is usually multiplied by an assumed occupancy level of 30 weeks and divided by 12 months. This is then applied to the rental coverage calculation. 

The calculation is £15,000 / 12 months = £1,250 monthly rental. £1,250 / 1.45 = £862.07 / 0.0810 = £10,642.84. £10,449.33 x 12 gives a maximum lend of £127,714

For example

High season £700, Mid season - £500, Low season - £300,  Season Average = £500
Multiplied by 30 weeks ÷ 12mths = £1,250
Rental coverage calculation (RCC) is £1,250 ÷ 1.45 = £862.07
RCC divided by current stress rate is £862.07 ÷ 0.0810 = £10,642.84
RCC multiplied by 12 months is £10,642.84 x 12 = £127,714
Maximum lend value = £127,714
Applicants can stay in the property for up to 2 months per annum.

 We lend up to 95% LTV on Residential new build houses in England and Wales.

• We lend up to 90% LTV on Residential new flats in England and Wales*.
• We lend up to 75% LTV on Buy to Let new build flats and houses in England and Wales*.
• We offer HTB Wales up to 75% LTV on selected products.
• We have an extendable offer period for new build - 8 months initial with an 8 month extension. 
• No mortgage commitment fees or completion fees.
• Architects certificate accepted up to 90% LTV*.
• Builder's incentives (for example the payment of stamp duty, legal fees, cashback, mortgage subsidies.) are acceptable provided they are taken into account by the surveyor and are on the UK Finance Disclosures Form. Please note we're not responsible for any information contained on external websites.
• Builder’s gifted deposit, the client will need to put down a minimum of 5% deposit from their own funds.
• Builders gifted deposits not netted off the purchase price.

Visit our new build information for more. 

We provide mortgages on freehold and leasehold properties in England and Wales.

We don’t lend on houses with multiple occupancy or student lets.

We lend up to 95% loan to value (LTV) for first time buyers, 90% LTV for home movers and 90% LTV on re-mortgage of residential houses, flats, maisonettes and apartments.

We will consider loans for the purchase or re-mortgage of a residential second home i.e. for the borrower’s own use to a maximum of 75% LTV. 

Leasehold properties

• All leasehold properties must have at least 85 years remaining on the lease at the time of application. 

Flats, studios, maisonettes and apartments

• Flats, studios, maisonettes and apartments will be considered as long as the block is not more than 10 storeys.
• We will only lend between 6-10 storeys if the block is a ‘good quality’ residential development for private occupation and built by an established and recognised developer.
• Flats or maisonettes must be leasehold. 
• We are able to lend on ex local authority or housing association flats on developments where demand is high and accommodation is considered desirable. 

New builds

• On buy-to-let new build houses, flats, apartments, studios and maisonettes we lend up to a maximum of 75% LTV.
• On residential new build we lend up to 95% loan to value (LTV) for new build houses. For new build flats, we lend up to 90% loan to value (LTV).

We will not lend on  

• Any property that has a restricted occupancy clause i.e. 157 (relating to the sale of properties in national parks) or 106 (relating to property affordability).

Our requirements for properties which are subject to ground rent are as follows:

Ground rent and other fees referred to in a lease must be reasonable at all times during the lease term. Ground rent increases linked to the Retail Price Index (RPI) or a similar index are generally acceptable but unreasonable multipliers of ground rent are not acceptable.

Leases which have a current or potential annual ground rent of £250 or more or an annual ground rent of over £1,000 for property in London are not usually acceptable*.  
These are acceptable if the lease is varied or a suitable indemnity policy is or will be in place to protect us. 

For properties where a new lease has been granted after 30 June 2022:

If the ground rent proposed is greater than a peppercorn, the valuer will place a zero value on the property until conveyancers investigate and confirm the ground rent terms are acceptable. This decision is based on a number of different factors.

*Context for our limit:

If the ground rent is at these levels or may reach this level and is, therefore, referred to within the Housing Act 1988 it means a long lease can be treated as an Assured Shorthold Tenancy (AST). 
If that is the case, a court has no option other than to grant an order for possession in arrears situations. In addition, if at least 3 month's rent is more than 3 months overdue the power of a Court to grant relief from forfeiture of the lease does not apply to ASTs. The Court has no choice, it must terminate the lease and give possession back to the freeholder. The usual provisions for relief from forfeiture are not applicable.

We will consider a new mortgage on a property where solar panels are currently in place and or subject to a lease. 

Where a lease exists or a lease is to be entered into, the lease must comply with the UK Finance Mortgage Lenders Handbook minimum requirements. Any lease not meeting this standard will be declined.

Any cost of checking the lease will be met by the customer.

Where customers have chosen a fee free re-mortgage product, this work is not included in the free legal package.

All applicants must be a UK resident at the time of application and have at least 2 years UK residential address history.*

We’ll lend to: 

• A European Economic Area (EEA) national who is resident in the UK and at the time of application has permanent legal right of residence in the UK, pre-settled status or settled status; or
• A Non-EEA national resident in the UK who has obtained indefinite leave to remain or has more than 12 months on their visa at the time of application.

And, for joint applications only one applicant needs to meet our visa criteria.

We’ll allow:

• Up to 95% LTV lending for EEA and non-EEA applicants*

*Subject to successfully passing a credit check.

For any strong cases outside of this criteria which you feel have a good rationale for lending please speak to your local BDM.

If lending is past the age of 70 or the applicant's intended retirement age (whichever comes first), the following applies:

1. If retirement is more than 10 years away, and the term does not extend beyond age 75 then we will use current income for affordability purposes, as long as the customer can prove they are paying into a private pension (payslip, bank statement or pension statement accepted). 

2. In all other circumstances affordability is reliant on a projected pension income, the applicant:

• Must have been contributing to the pension for a minimum of 10 years; and 
• Should provide the latest annual statement or projected pension income. 

This will be used for the affordability calculation. 

For joint borrowers, where the term extends beyond the oldest borrower’s 76th birthday, the underwriter must be satisfied that the loan is still affordable following the death of either borrower. If you would like to discuss this further, please contact your local BDM or the team on 0330 333 4021.

Residential and buy to let mortgage and re-mortgage offers are valid for a 180 day period (6 months), except in the case of a new build purchase, where offers are valid for 240 days (8 months).

Residential applications

• We accept residential applications from applicants who are aged 18 or over. 
• All residential mortgages should be repaid before the eldest applicant’s 76th birthday. Underwriters will consider repayment before the eldest applicant’s 85th birthday.
• If any element of the mortgage loan is interest only, the mortgage will need to be repaid before the eldest applicant’s 70th birthday. 
• For joint borrowers, where the term extends beyond the oldest borrower’s 76th birthday, the underwriter must be satisfied that the loan is still affordable following the death of either borrower. 
   

Buy to let mortgage applications including holiday lets

• Applicants should be 21 years old or older. 
• All buy to let / holiday let mortgages should be repaid before the eldest applicant’s 85th birthday.
   

Retired applicants 

If lending is past the age of 70 or the applicant's intended retirement age (whichever comes first), the following applies:

• If retirement is more than 10 years away, and the term does not extend beyond age 75 then we will use current income for affordability purposes, as long as the customer can prove they are paying into a private pension (payslip, bank statement or pension statement accepted). 
• In all other circumstances affordability is reliant on a projected pension income. 

For joint borrowers, where the term extends beyond the oldest borrower’s 76th birthday, the underwriter must be satisfied that the loan is still affordable following the death of either borrower. 

For more, search for lending into retirement.

The Mortgage Market Review (MMR) allows us to relax affordability assessment rules for borrowers who already have a mortgage with us but do not meet the stricter affordability and criteria requirements which came in with MMR.

Existing Principality borrowers, who

• Want to vary the terms of their mortgage, for example a term extension, where no additional borrowing is required, will not be subject to the affordability requirements or other requirements under MMR. 
• Need additional borrowing or wish to vary the terms of their mortgage including a further advance, will need to satisfy the affordability requirements under MMR for the total borrowings and, in the case of interest only loans, provide a suitable repayment strategy. 

If you are helping an existing Principality borrower and need help please get in touch.

The maximum number of applicants is 4.

We will consider all applicants incomes.

All 4 applicants must live at the property. 

We accept Working Tax Credit (WTC) at 100%.

We will not accept child tax credits or child benefits.

Where the property is being purchased from an immediate family member at under value the Society accepts the equity as the deposit. An immediate family member is defined as a spouse, mother, father, brother, sister, child, grandparent, grandchild or legal guardian.

For any purchases including a buy to let property using gifted equity, please contact your local BDM before submitting your case.

For an applicant who is about to or has started parental leave their income will be based on their salary on return to work. 

We will need 

• The last 3 monthly or weekly payslips with corresponding bank statements; and 
• A letter from the employer to confirm the return to work date with confirmation of the applicant’s salary on their return to work. 

If savings are being used to pay the mortgage during parental leave, we’ll need to see evidence of the savings.

The deposit and costs for the purchase should be provided out of the applicant’s own resources. However, gifts from immediate family are acceptable. An immediate family member is defined as a spouse, mother, father, brother, sister, child, grandparent, grandchild or legal guardian.

Loan to income on standard products is 4.49x.

Medical workers
Thank you products are calculated at 5x loan to income. 
 

Newly qualified professionals
For newly qualified professionals, where at least one applicant has qualified in the following professions in the last 5 years, we can offer a loan to income of 5.5x for sole and joint applications.

• Financial sector - Accountant
• Building sector - Architect, surveyor
• Legal sector - Barrister, solicitor
• Health sector - Dentist, doctor, optometrist, pharmacist or vet

Affordability calculations are different for newly qualified professionals (NQP).

Our affordability calculator won’t calculate the NQP 5.5x Loan to Income feature. 

Please email your local BDM with a copy of a completed standard calculation and they will do the calculation for you. 

First time buyers
First time buyer products are calculated at 5.5x loan to income.

• Available for first time buyers only with an income of £30k (sole) or £50k (joint).
• Available on 5 year fixed rate standard residential mortgages except 95% new build mortgages.  
• Cannot be combined with any scheme or non-standard mortgage type (e.g. JBSP, Shared Ownership, HTB etc.) Not available on interest only.
• Applicants cannot be self-employed.
• We will accept variable income including overtime as well as basic income.

Submitting an application with a higher LTI

• Our affordability calculator uses a standard calculator and won’t calculate enhanced LTIs.
• MSO will automatically decline the case.  
• Please get in touch with your local BDM to make the calculation for you.
   

We accept applications from foster carers.

6 months proof of income e.g. remittance slips or payslips with corresponding bank statements is required. We average and annualise the income shown. 

The number of dependent children within the applicant’s care is also needed for the affordability calculation.

We will accept joint residential new mortgage applications made between an applicant and a sponsor.

A sponsor can be a parent, grandparent, child, grandchild, sibling, spouse or legal guardian using all income for affordability.

The sponsor does not need to be on the deeds. 

A sponsor cannot live in the property.

We only accept applications for purchases only. We do not accept remortgage applications.

Contact your local BDM for your JBSP applications or visit Family boosts for more information. 

We consider non-regulated buy to let mortgage applications on an advised basis. 

Properties must have an energy performance certificate rating of E or above.  We will accept applications from applicants who do not currently own and live in their own home.

Applicants 

• Should be 21 years old or older and 
• Collectively own not more than 3 mortgaged buy to lets. 

We consider Non-EEA applicants.

There is no minimum income requirement.

The maximum total borrowing must not exceed £2m including our lending. This should include any mortgages the applicant/s is included on jointly. This can exclude any residential and/or holiday let mortgages.

The maximum LTV for a buy to let mortgage is 75% with the minimum property value and purchase price of £50,000 and a minimum loan size of £25,000.

Interest Only applications are acceptable for buy to let up to 75% LTV. 

Standard applications:

For new purchases, we will require 145% @ 5.50% as rental coverage.

For different lending scenarios, we will require as rental coverage:

If the application is a £4£ re-mortgage on a property purchased on a BTL basis before January 2017, we will require 125% @ 5.50% as rental coverage*.
If the application is a £4£ re-mortgage on a property purchased on a BTL basis after January 2017, we will require 145% @ 5.50% as rental coverage*.
If the application is a re-mortgage with additional borrowing on a property purchased on a BTL basis, we will require 145% @ 5.50% as rental coverage*.

*This is for 5-year fixed products. For 2-year fixed products we will require 7.65% as rental coverage.

Consumer Buy to Let 

We accept consumer buy to let applications.
Note: The Society does not currently lend for regulated buy to let mortgage loans but continues to service existing accounts.

Lettings must be Assured Shorthold Tenancy Agreements (ASTA, England) / Written Statement of Standard Occupation Contract (WSSOC, Wales) with no more than 12 months remaining at application. Where a tenant (England) / contract holder (Wales) is continuing tenancy beyond the initial ASTA/WSSOC, a new rolling contract is acceptable. This will be verified by the solicitor in line with our mortgage conditions. All borrowers must be named on the tenancy agreement/Written Statement of Standard Occupation Contract. 

We won’t lend on third party or sub lettings, this includes company lets and local authorities.

Gifted Equity
For any purchases using gifted equity, please contact your local BDM before submitting your case.

We will consider consumer buy to let (CBTL) applicants when:

• The applicant does not own other rental properties; and
• The applicant or related person has previously lived in the property or the applicant has inherited the property or the property has been received as a gift.

We don’t accept new applications for regulated buy to let mortgages. We do service existing accounts.

We’ll accept interest only residential mortgage applications on this basis:

• The maximum loan to value is 50%. A mix of interest only and repayment is allowed but the total borrowing must not exceed 50% LTV;
• The maximum term is 25 years; 
• Mortgages will need to be repaid on or before the eldest applicant’s 70th birthday; and 
• The minimum equity in the property is £150,000. 

Evidence of a repayment strategy that meets our criteria and documentary evidence is required for interest only or part interest only mortgages.

Please see our Interest only residential mortgage applications: Repayment strategy, evidence and assessment guide.

All income and affordability for interest only mortgages is assessed by our standard affordability calculator model on a repayment basis. 

Capital raising for debt consolidation is not acceptable on an interest only basis.

Where the existing residential property is to be let rather than sold, we’ll need a copy of the Assured Shorthold Tenancy Agreement (England) / Written Statement of Standard Occupation (Wales), or a letter from the letting agency confirming the intention to let. 

For let to buy, we will require rental coverage of 145% of the monthly mortgage payment @ 5.50%*

* This is for 5-year fixed products. For 2-year fixed products we will require 7.65% as rental coverage.

If another lender is involved, a consent to let letter will also be required.

Where redemption of the loan is 90 calendar days or less from the expiration of any product special rate restriction, the early repayment charge (ERCs) will be waived and the customer can select a new product from Principality’s mortgage acquisition range available at the time.

This is subject to a simultaneous redemption and completion of a new mortgage loan with Principality. 

We will not waive the ERC in these circumstances:

• Where the client already owns the property to which they wish to transfer this mortgage; 
• Where the amount the client wishes to transfer to their new property is less than the balance outstanding at the time of transfer; 
• Where the client chooses not to transfer their loan on its existing terms; 
• The client may not borrow additional sums on the terms governing the amount they wish to transfer. They may only borrow additional amounts by choosing another non-flexible product from our range current at the time; or 
• The client or their new property does not meet our lending criteria current at the time of the transfer.

This list is not exhaustive.

All intermediary porting enquiries should be submitted to your local BDM or via our support desk. 

Where online gambling or gambling debts are identified, often by reviewing the applicant’s bank statement, the Underwriter will exercise discretion. They may ask for more information to ensure there is no affordability issue.

We won’t lend to anyone that has had a property repossessed. 
We won’t consider a mortgage application where one or more applicant has adverse credit. 
If your applicant has credit issues that are less than our adverse criteria definition please contact us before you submit the application. 

Our definition of adverse credit is where an applicant has: 
• 1 or more County Court Judgements with a total value of more than £500 in the last 6 years;
• 1 or more Delinquent CAIS (Credit Account Information Sharing) accounts with a total value of more than £500 in the last 6 years; 
• Overdue payments of an amount equivalent to 3 months repayments on a mortgage or loan (secured or unsecured) in the last 2 years, except as the result of an error by the bank or a third party; or
• An Individual Voluntary Arrangement (IVA), bankruptcy or Debt Management Plan (DMP) in the last 6 years. 

This meets and exceeds the credit impaired definition set out by the FCA. 

A Delinquent CAIS Account is one that 
• Is in Default i.e. CAIS status 8; 
• Has a CAIS status of 4 or worse in the last 12 months of account activity; or
• Has 2 consecutive CAIS status 3s in the last 12 months of account activity.

We won’t accept an application from an applicant who has had a payday loan in the last 12 months.

If the new loan is shown to be affordable, we will consider loans where part of the total advance is used to repay other secured or unsecured debts.

This includes agreements with family or friends. 

Applications will be considered on the following basis

- Maximum Loan to Value (LTV) 75%;
- Capital repayment only; 
- A special condition is added to the mortgage offer which requires the applicant to repay the debts in the application; and 
- All current debts (including those being repaid) are included in the affordability calculation.

We accept applications from our armed forces. 

They may have access to schemes to help them purchase their own home e.g. Forces Help to Buy. As part of their application, applicants will need to provide a confirmation document from their employer.

Some schemes have a loan repayment element and some applicants must maintain a residence on or near their work base. Any monthly outgoings related to this must be included as expenditure for the mortgage calculation.

We support UK Government and Welsh Government strategies on affordable housing, in Wales and England including shared ownership schemes.

We’ll lend up to 95% LTV on houses and 90% LTV on flats. Applicants can purchase between 25% and 75% of the property value for our shared ownership. The shared ownership property must be leasehold. 

We'll lend on both new build and pre-owned shared ownership houses.

For pre-owned houses, we will not allow simultaneous staircasing at the time of purchase.

We’ll only offer repayment mortgages, we won’t consider interest only lending. We don't accept remortgage applications for shared ownership. 

Arrangements must be through a registered Housing Association or Registered Social Landlord. They must allow staircasing up to 100% ownership. 

Any rent, maintenance or service charge must be declared.

The completing solicitor must confirm that the lease meets our requirements, our security is protected and the relevant checks of the section 106 are completed. 

The lease must allow an adequate mortgage protection clause that protects us from losses in the unlikely event that the property is taken in to possession, or achieved by way of a suitable Deed of Postponement / Priority. The Mortgage Protection Clause must cover the initial loan and all additional lending / staircasing up to 100%.

Where shared ownership is part of a larger development, our maximum exposure will be 20% to any one development.

We will consider Help to Buy Wales with as little as a 5% deposit.

Right to Buy council schemes. 
The mortgage loan must have the same names as those being offered the discount on the legal paperwork. We can lend the total discounted purchase price up to 95% of the property value. Where a clause exists that, for example, restricts the re-sale of the property the maximum loan will be 95% of the lower valuation and the tenant’s discounted purchase price. We don’t lend additional funds for home improvements on a right to buy application. We will consider house only, no flats.

We will include rent as a cost to the client when assessing maximum affordability for shared equity purchases.

When we can’t locate applicants on the electoral register, we’ll ask for proof of the applicant/s address for the last 3 years.

This must be a UK address.