Residential Criteria. 15 June For new enquiries call:

Transcription

1 Residential Criteria 15 June 2016 For new enquiries call: Nirver Randhawa Business Development Manager Tel: Lewis Wheeler Telephone Business Development Manager Tel: Debby Tedder Telephone Business Development Manager Tel: For cases already in progress please call The Mortgage team on Tel:

2 Residential Criteria 2 Applicant Minimum age Maximum age at end of term Maximum LTV Minimum mortgage term Maximum mortgage term Guarantors Contractors Expats Self build 21 (or product specific) maximum age. For any loan that extends into an applicant s retirement, or beyond the age of 75, (whichever occurs first) retirement income must be evidenced and affordability proven. See guidelines at the end of the document. Product specific 5 years 40 years Maximum number of applicants 4 Acceptable income Gross annual income Regular overtime, bonus or commission Self employed Maintenance 100% of basic + guaranteed allowances (e.g. area weighting allowance, car allowance, housing allowance) 100% of guaranteed / 50% of non-guaranteed 3 years Net Profit figures required, affordability can be based on latest years figure if reasonable year on year increase over the last 3 years is shown 50% (by court order child must be 13 years or under) Personal / State Pensions + Lifetime Benefits 100% Maternity leave Other benefits (i.e. child tax credits, housing benefit, child benefit, job seekers, etc) Additional income (such as second jobs and trust funds) 100% of basic salary upon return to work and must be confirmed by employer. Loan Minimum loan amount 30,000 Maximum loan amount Repayment type Interest calculation Capital raising Consolidation loans Right to buy Shared ownership Lending to Limited Companies Multiple mortgages 1,000,000 or product specific (please refer above specified limit) Repayment & interest only Daily * Lending Criteria subject to change. All mortgages are subject to status. Residential Criteria

3 Residential Criteria 3 Property Minimum property value 100,000 Remaining lease at end of mortgage term High rise flats (above 6 storeys) New build flats Ex local authority flats Flat above commercial Freehold flats Second homes Vendor deposits Builder deposits Minimum time previously owned by vendor Minimum time owned before remortgage Lend in Scotland Lend in rthern Ireland 50 years to a maximum of 80% LTV 6 months 6 months Documentation required Employed Last 3 months payslips Latest P60 Last 3 months bank statements Statements must confirm income and expenditure Documentation required Self Employed Last 3 years audited accounts Accountant s certificate SA302 Last 3 months personal bank statements Last 3 months business bank statements Last 3 years Statements must confirm income and expenditure Documentation required All * Lending Criteria subject to change. All mortgages are subject to status. Proof of deposit Name & address identification * Lending Criteria subject to change. All mortgages are subject to status. Residential Criteria

4 Residential Valuation Fees 4 If the property exceeds the valuation amounts shown, please contact us for a quote. Fees shown include VAT and a non-refundable application fee of 135. Other fees may apply please ask for details. Property valuation Up to 200, , , , , , , , , , , , , , , ,001 1,000,000 1,065 1,000,001 1,200,000 1,235 1,200,001 1,400,000 1,535 1,400,001 1,600,000 1,735 1,600,001 1,800,000 1,885 1,800,001 2,000,000 2,035 2,000,001 + The fees above do not include Self Build valuations. Self Build Valuation Fees Property valuation Up to 400,000 1, , ,000 1, , ,000 1, , ,000 1, ,001 1,000,000 2,035 1,000,001 1,500,000 2,635 1,500,001 2,000,000 3,135 2,000,001 + Valuation Fees

5 Saffron Building Society does not offer Lifetime Mortgages. The undernoted criteria must therefore be applied when considering client proposals that will extend either into retirement or attaining the age of 75. Please note that this criteria applies to both Residential and Buy to Let Mortgages insofar as is appropriate. Although BTL servicing will continue to be measured against rental income, we must also consider the dependence upon personal circumstances and income to cover associated risks e.g. rental voids, repairs and maintenance etc The following criteria will apply where any applicant will be beyond their 75 th birthday at term end: From the point of retirement, or 75 th birthday, whichever is due first, only 'retirement' income will be permitted from that day for the purpose of evidencing affordability - no 'working' income will be allowed All actual or projected retirement income must be evidenced projected income will be allowed where retirement (or age 75) is still more than 15 years away Where retirement income is relied upon for affordability see tables below for acceptable income percentages this will be further restricted as follows: Sole applicant (no occupiers) - 100% Sole applicant (with occupier) 50% Joint applicants - 50% of the higher income, 100% of the lower income A maximum LTV of 50% will apply to any borrowing on an Interest Only repayment basis Sale of the residential property (i.e. downsizing) will not be permitted as a repayment strategy for any Interest Only lending, irrespective of the LTV A single asset may not be suitable as a means of both servicing and repaying the mortgage e.g. a SIPP drawdown may be used for servicing, but this would reduce the fund so unsuitable as a repayment vehicle The maximum term allowable will be assessed on an individual basis using all appropriate information and data available to us i.e. Interim Life Tables published by the ONS The following additional criteria will apply where any applicant is beyond their 75 th birthday at point of application: A maximum LTV of 80% will apply to borrowing on a Capital & Interest repayment basis All applicants will be required to receive Independent Legal Advice Use the Retirement Affordability Calculator ensuring you apply any income restrictions first e.g. if only 50% is allowed then halve the income figure before entering it 1. Acceptable Retirement Income Source In Receipt Projected Typical Evidence Pension with form of guarantee 100% Latest 3 month advice slips or Latest P60 Pension without guarantee 100% of projected income after deduction of tax free allowance Annual statement with projection no more than 12 months old 12 month average Latest 12 month advice slips or Latest P60 50% of projected income after deduction of tax free allowance Annual statement with projection no more than 12 months old Please note that State Pension will only be permitted where it forms part of a multi income retirement plan. It will not be allowed on its own

6 SIPP 5% of current fund value 5% of current fund value Portfolio detail Trust Income Dependant on terms of trust Dependant on terms of trust Trust Deed 3 year income evidence Investment Income 50% of last 3 years average income ne Portfolio detail Rental Income 50% of current excess income or net profit 50% of current excess income or net profit A/L profile Tax Returns Mortgage/Bank statements For anything else please contact us to determine whether it would be acceptable or not 2. Acceptable Repayment Vehicles (for Interest Only lending) Vehicle Percentage Evidence Personal pension guaranteed fund Personal pension non guaranteed fund Endowment Plan 100% of actual / projected tax free cash 50% of actual/projected tax free cash (middle projection rates) 90% of projected value (middle rates) Latest annual statement confirming value no more than 12 months old Latest annual statement detailing projected values no more than 12 months old Latest annual statement no more than 12 months old SIPP 50% of current value Portfolio detail Trust Fund Dependant on terms of trust Trust Deed Government Securities Other Investments e.g. ISA/Investment Bonds/ Managed Portfolios UK Property excluding main residence 90% of current value Latest statement no more than 12 months old 50% of current value Current portfolio valuation incorporating schedule of investments held 50% of current unsecured equity Asset / Liability profile Latest Mortgage Statement (if applicable) (NB Overseas property is not permitted)