Mortgage Product and Criteria Guide For Intermediary Use Only

Transcription

1 24 August 2018 Issue 11/18 and Criteria Guide For Intermediary Use Only Contents Pages Residential House Purchase and Remortgage 3-9 Residential House Purchase Family Assist 10 Shared Ownership House Purchase and Remortgage Help To Buy: Equity Scheme 13 Self Build House Purchase and llremortgage Buy To Let Criteria Business Buy To Let FCA Regulated Family Buy To Let 20 Consumer Buy To Let 21 Enquiries and s 22 Affordability, Income & Expenditure Calculations 23 Valuation and Legal s 24 Our Versatility range of specialist mortgage products for applications needing our personal approach, is also available. Contact us for more details or download a Versatility Guide from the website mansfieldbs.co.uk/intermediaries/product-guides-and-downloads 14 Benefits of using The Mansfield We lend across England and Wales No automated credit scoring Each case individually underwritten Dedicated Intermediary Sales support Direct access to underwriters and underwriter assessed DIP The information contained in this document is a summary of our mortgage products and lending criteria. We reserve the right to withdraw or amend mortgage products without notice.

2 Key Information Interest is calculated daily Up to 10 of the agreed advance can be repaid each year with no early repayment charge (ERC) during the initial fixed or discounted period s - An early repayment charge (ERC) equivalent to a percentage of the agreed advance including any fees added will be made if redeemed at any time during the initial fixed or discounted period. If a new consecutive mortgage for at least the same amount as the total mortgage balance outstanding is taken out with us then any early repayment charge will be waived. If a new mortgage for at least the same amount as the total mortgage balance outstanding is taken out within 3 months of full repayment then any early repayment charge will be refunded to you LTV is exclusive of fees unless stated If a product has an application fee, this is payable at the time of application. This fee is non-refundable - If a product states there is a completion fee, this is payable on or before completion. Where product features allow, customers may positively elect to add the completion fee to the loan amount. If the completion fee is added to the loan amount this will become interest bearing and will be reflected in the monthly repayment over the term of the mortgage For new enquiries and Decisions In Principle contact Intermediary Sales Support brokers@mansfieldbs.co.uk For application updates contact our Department mortgages@mansfieldbs.co.uk No Higher Lending payable by borrower All discounted rates have a minimum interest rate of 1.5 which will apply during the term of the discounted period (unless stated) 2

3 Residential s We lend across England and Wales with house purchase mortgages up to 95 loan to value and remortgages up to 90 loan to value. We can accept up to 4 applicants on a mortgage. Our flexible criteria includes family gifted deposits, guarantors, discounted family purchases and Right to Buy. We also offer lending into retirement (see overleaf), Shared Ownership, Help to Buy, and interest only mortgages. Residential Range Self-employed with 2 years accounts Contractors and zero hours contracts accepted up to 80 LTV, --subject to status Interest only available up to 75 LTV with part and part available up to 90 LTV (max 75 LTV for interest only element) - Family Assist mortgages available at 100 LTV when security --collateral of 20 of the property value is provided by family --member(s) Shared Ownership available up to 95 share (75 property value) Help to Buy Equity available across England and Wales Self build available through Buildloan, with advance stage payments --product available up to 85 LTV 3

4 Residential Age Criteria repaid before age 70 repaid between age 70 and before age 80 repaid between age 80 and before age 85 LTV Acceptable repayment methods Capital repayment and interest only. Interest only element must not exceed 75 LTV. Part capital repayment / part interest only available. Capital repayment and interest only. Part capital repayment / part interest only available Capital repayment Property downsizing considered, subject to minimum 150,000 equity Yes Yes (on specified products only subject to maximum 40 LTV). See page 8. No Term (years) Term (years)

5 Residential House Purchase Fixed LTV 2 Year Fixed DIX N/A 5.6 over 90 and up to 95 50, , Capital repayment only The completion fee can be added to the loan up to the product LTV limit Fixed DIX N/A 5.4 over 90 and up to 95 50, , Capital repayment only The completion fee can be added to the loan up to the product LTV limit Variable Current LTV 2 Year DID over 90 and up to 95 25, , NIL 2 Capital repayment only 5 CURRENT SVR 5.59

6 Residential House Purchase or Remortgage Fixed Current LTV 2 Year Fixed Fixed DIX N/A 5.4 Over 80 and up to 90 50, , DIX N/A , , DIX N/A 5.2 Over 80 and up to 90 50, , DIX N/A , , For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in # Please note where applicant wishes to use own solicitor, an Illustration cannot be produced via our website. To request one visit 6 CURRENT SVR 5.59

7 Residential House Purchase or Remortgage Variable Current LTV 2 Year DID Over 80 and up to 90 25, , DID , , DID , , MPD ,000 1m For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in For remortgages, free legal fees via our nominated solicitor# The completion fee can be added in Basic valuation fee payable by applicant(s) The completion fee can be added in interest rate of 2 will 1apply during the discounted period # Please note where applicant wishes to use own solicitor, an Illustration cannot be produced via our website. To request one visit Illustrations for MPD002 are not available via our website. They are available from the majority of sourcing systems, or to request one from us visit 7 CURRENT SVR 5.59

8 Residential House Purchase or Remortgage Borrowing Into Retirement - Property Downsizing Variable Current LTV 2 Year DID , , Basic valuation fee payable by applicant(s) Capital raising considered subject to a maximum 50k for this element of the loan The completion fee can be added in interest rate of 2 will apply during the discounted period Interest only with downsizing as the repayment strategy subject to a minimum equity of 150k term 35 years subject to loan being repaid before the oldest applicant reaches the age of 80. Note: Brokers will be required to sign an additional declaration which can be downloaded from our website 8 CURRENT SVR 5.59

9 Residential House Purchase Exclusively for Existing Borrowers Moving House Variable Current LTV DID , ,000 NIL DID over 80 and up to 90 25, ,000 NIL The completion fee can be added in interest rate of 2 will apply during the discounted period The completion fee can be added in interest rate of 2 will apply during the discounted period Fixed LTV Fixed DIX N/A , ,000 NIL DIX N/A 5.2 over 80 and up to 90 25, ,000 NIL The completion fee can be added in The completion fee can be added in These products are available exclusively for home purchase applications made by existing borrowers of the Society or returning borrowers who make an application within 3 months of full repayment. 9 CURRENT SVR 5.59

10 Residential House Purchase Family Assist Current LTV 5 Year Fixed XFM N/A , , NIL 3 DFM001 Currently , , NIL 3 Capital repayment only Exclusively available when 20 llllsecurity collateral is provided by a llllfamily member (see below) Valuation fee payable by customer Legal fees payable by customer 400 cashback on completion Capital repayment only Exclusively available when 20 llllsecurity collateral is provided by a llllfamily member (see below) Valuation fee payable by customer Legal fees payable by customer 400 cashback on completion Security collateral equal to 20 of the value of the property being purchased must be provided by family members as either cash savings or equity in the family members home. In addition to our usual mortgage application process, borrowers and their family members will need to sign a Family Assist Deposit Deed of Agreement (the Agreement), which can be viewed from the Guides and Downloads page of our website. The security collateral will be held by the Society for 7 years from the start of the mortgage. Security collateral can be released by the Society before 7 years if the mortgage account is closed subject to the Agreement conditions being met, this can be viewed from the Guides and Downloads page of our website. Independent legal advice is essential for those using the equity scheme and recommended for those using the cash deposit scheme. 10 CURRENT SVR 5.59

11 Shared Ownership House Purchase or Remortgage Available to Mansfield Shared Ownership Club Members Only Fixed LTV (see notes^) 2 Year Fixed SX N/A , , NIL 2 Capital repayment only Available for staircasing Available to All Brokers Variable Current LTV (see notes^) 2 Year Fixed SO , , NIL NIL SX N/A , , NIL 3 Available for staircasing Available for House Purchase and qremortgage Capital repayment only property value 75,000 ^ LTV - 95 of the borrowers share, where no more than 75 of the property/value is being purchased or remortgaged. Shared Ownership Schemes - Available on residential owner occupied property in England & Wales for qualifying applicants purchasing property on a shared ownership basis from pre-approved housing associations registered with the Homes and Communities Agency. Please note that Illustrations for Shared Ownership products are not available via our website. They are available from the majority of sourcing systems, or to request one from us visit 11 CURRENT SVR 5.59

12 Shared Ownership House Purchase or Remortgage Available to all Brokers Use these product for applications that do not fit our standard Shared Ownership criteria. If one or more applicants is on a Zero Hours Contract (24 months track record is required) or where applicant(s) has very minor issues on their credit file. Please call us if you wish to discuss. Variable Current LTV (see notes^) Fixed SOM , , NIL 3 SXM N/A , , NIL 3 No Capital repayment only Also avalable for staircasing No Capital repayment only Also avalable for staircasing ^ LTV - 95 of the borrowers share, where no more than 75 of the property/value is being purchased or remortgaged. Shared Ownership Schemes - Available on residential owner occupied property in England & Wales for qualifying applicants purchasing property on a shared ownership basis from pre-approved housing associations registered with the Homes and Communities Agency. Please note that Illustrations for Shared Ownership products are not available via our website. They are available from the majority of sourcing systems, or to request one from us visit 12 CURRENT SVR 5.59

13 Help To Buy: Equity Scheme Variable Current LTV SEODO , , NEW BUILD ONLY Basic valuation fee refunded up to 400 Capital repayment only Also available with Forces Help to lll Buy Scheme The completion fee can be added llllin excess of the product LTV limit interest rate of 2 will apply during the discounted period The Help to Buy: Equity Scheme (operated by the Homes & Communities Agency (HCA) or Help to Buy Wales Ltd) is available to qualifying applicants on residential owner-occupied property in England or Wales up to a maximum loan of 75 of the purchase price or valuation whichever is the lower, subject to the purchaser(s) providing a minimum cash deposit of 5 of the value. The scheme offers an equity loan provided by the Government of up to 20 of the cost of the property. Help to Buy homes are only available from registered house builders and applications must be accompanied by confirmation that applicants are eligible for the Scheme. The maximum amount of loan is 450,000 in England and 225,000 in Wales. Please note that Illustrations for Help to Buy: Equity Scheme products are not available via our website. They are available from the majority of sourcing systems, or to request one from us visit 13 CURRENT SVR 5.59

14 Self Build House Purchase or Remortgage Variable Current LTV 2 Year Term ,000 SBL ,000 NIL 1, ,000 SBA , ,000 NIl 1,499 2 SBL N/A , ,000 NIL 1 NIL SBA N/A , ,000 NIL 1.5 NIL Basic valuation fee payable by applicant(s) must be repaid before age 70 The completion fee can be added in --excess of the product LTV limit Available for advance stage payments --during the build Basic valuation fee payable by applicant(s) must be repaid before age 70 The completion fee can be added in --excess of the product LTV limit Interest only acceptable during build Basic valuation fee payable by applicant(s) must be repaid before age 70 Interest only acceptable during build The completion fee can be added in --excess of the product LTV limit Available for advance stage payments --during the build Basic valuation fee payable by applicant(s) must be repaid before age 70 The completion fee can be added in --excess of the product LTV limit Interest only acceptable during build These products are available exclusively through Build or visit A procuration fee of 0.80 is paid by us to Build on completion. Construction types - In addition to properties using traditional construction methods, the Society will also consider the following: Interior Frame - structural insulated panels/insulated concrete framework/steel or timber frame External Cladding - European Redwood/Western Red Cedar/ Siberian or UK grown larch Timber frame/timber cladding combination Roofing - Zinc/copper/lead/sedum/thatched 14 CURRENT SVR 5.59

15 Buy to Let s Whether it s professionals, Consumer Buy to Let or letting out a property to a close relative, our individual underwriting service can take into consideration the broader circumstances of a buy to let landlord. We do not use automated credit scoring systems and each case is manually underwritten, judged on it s own merits by a real person. We offer a dedicated Intermediary Sales Support team and access to underwriters. Buy to Let Range Standard Business Buy to Let up to 75 LTV, product available up to 80 LTV for Top Slicing cases only (earned income and rental income) FCA Regulated Family Buy to Let (property to be let to a close relative) up to 75 LTV, including product available for Top Slicing Expat Buy to Let available up to 70 LTV Specialist product available for Holiday Lets (max 70 LTV) or lllproperty improvement/light refurbishment (max 75 LTV) Let to Buy accepted: up to 75 LTV on the Consumer Buy to Let, up to 95 LTV on the residential property purchase, subject to status We do not lend on new build city centre flats, properties over retail outlets, a House in Multiple Occupation (HMO) or to Limited Companies. Tenants in the following categories are not acceptable: students, multiple tenancies, tenants who are claiming housing benefit, asylum seekers, persons who have or require diplomatic immunity, social landlords (such as housing associations), Rent Act protected tenants, or agents of any of these 15

16 Key Buy to Let Criteria mortgage term 5 years, maximum mortgage term 35 years prior to age 85 at the end of the mortgage term, minimum age 25 portfolio: 5 with us (maximum overall 1m value) and up to 15 with other lenders loan size 50,000, loan size 500,000 up q to 75 LTV First time landlords accepted, but not first time buyers. Current homeowners or owner-occupier within the last 12 qmonths Individual Buy to Let accepted (not limited companies) and qmust earn a minimum income of 20k (not from property) Capital raising to buy another property considered Assessing Affordability Buy to Let Interest Coverage Ratios (ICRs) Using Rental Income & Earned Income (Top Slicing) Background BTL Regulated BTL Consumer BTL Non Portfolio Landlord = 3 or fewer properties Portfolio Landlord = 4 or more properties Portfolio landlords (i.e. 4 or more mortgaged properties) will now be required to provide an assets and liabilities statement, together with a detailed schedule of all properties and loans outstanding. Forms are available on our website mansfieldbs. co.uk/intermediaries Like for Like Remortgage BBTL Purchase or Remortgage with capital raising on Business BTL Higher Rate Tax Payer No Yes 100 at product pay rate 125 at at 5.5 or 2 above pay rate, whichever is higher 145 at 5.5 or 2 above pay rate, whichever is higher Written confirmation required of rental income from a recognised professional letting agent who preferably should deal with the property 16

17 Business Buy to Let House Purchase or Remortgage LTV ICR Stress Rate* Fixed XIB N/A , , , This product is exclusively available for Business Buy to Let This product is not regulated by the Financial Conduct Authority (FCA) Not available for Consumer Buy to Let, FCA Regulated Buy to Let or Top Slicing The completion fee can be added in excess of the LTV limit DIB044 DIB039 Currently 2.49 Currently , , , , , , ^ ,000 Exclusively for Business Buy to Let The completion fee can be added in excess of the LTV limit This product is not regulated by the Financial Conduct Authority (FCA) Not available for Consumer Buy to Let, Regulated Buy to Let or Top Slicing The completion fee can be added to the loan up to the product LTV limit Exclusively available for landlords using earned income or other personal wealth in addition to rental income (Top Slicing) Not available for Consumer Buy to Let or Regulated Buy to Let ^ Assessments using earned income or other personal wealth Rental income alone must be at least 100 of the monthly mortgage payment calculated at product pay rate on an interest only basis *See criteria on pages 15 and 16 for rental income requirements 17 CURRENT SVR 5.59

18 Specialist Business Buy to Let House Purchase or Remortgage Variable Current LTV ICR Stress Rate* DIB , , , Holiday Lets Available on Holiday Lets up to 70 lllltv For Buy to Let applications that llldo not fit our standard Buy to Let llllcriteria, including Light llllrefurbishment Basic valuation fee payable by applicant(s) The completion fee can be added in Not available for Consumer Buy to Let, Regulated Buy to Let or Top Slicing Properties must be suitable for owner occupation with no title, local or occupancy restrictions and qualify as a Furnished Holiday Let under HM Revenue and Customs requirements. Lending on holiday parks or complexes, B&Bs and AirBnB are excluded. valuation 150,000. Holiday Let Affordability A holiday letting agent or valuer is to provide Low, Mid and High Season rental figures for the property. Agents letting fees should be deducted, or assumed as 20 of the gross rents if not confirmed. We will then take the annual average of the 3 seasons income (after agents fees) and use 70 of this figure, to allow for rental voids when calculating the ICR. This figure must cover the monthly mortgage payments calculated at 125 of the mortgage at pay rate. Assessments using earned income or other personal wealth (Top Slicing) is allowed on one Holiday Let property per borrower. *See criteria on pages 15 and 16 for rental income requirements (excluding Holiday Lets as detailed above) 18 CURRENT SVR 5.59

19 Expat Business Buy to Let House Purchase or Remortgage Variable Current LTV ICR Stress Rate* 2 Year DIB , , Exclusively available for Expat Buy ---to Let through devere s, ---John-Charcol, Coreco s, ---Large s and ---Alexander Hall The completion fee can be added in excess of the product LTV limit Not available for Consumer Buy to Let or Regulated Buy to Let Expat applicants must be a UK national and a previous UK owner-occupier, residing in a Financial Action Taskforce (FATF) member country for less than 5 years. Please note residents of Australia and China are ineligible, although member states of the Gulf Corporation Council, and Hong Kong residents are eligible. income of 40,000 (or equivalent) applies. of 1 Expat Buy to Let mortgage per borrower. A UK service address and a UK based sterling bank account are required. For full details please see our Expat mortgage application checklist available on the product guides and downloads page of our website. *Rental income must be at least 125 of the monthly mortgage payment calculated at 5.5 or 2 above mortgage pay rate, whichever is the higher, on an interest only basis. 19 CURRENT SVR 5.59

20 FCA Regulated Family Buy to Let s exclusively available for property to be let to a close relative (i.e. spouse or civil partner, children, parents, brothers and sisters). Variable Current LTV ICR Stress Rate* DIB , , , Basic valuation fee payable by applicant(s) The completion fee can be added in --excess of the product LTV limit Not available for Top Slicing Variable Current LTV ICR Stress Rate* DIB , , , ^ Basic valuation fee payable by applicant(s) The completion fee can be added to the loan up to the product LTV limit For landlords using earned income or other personal wealth in addition to rental income (Top Slicing)^ ^ Assessments using earned income or other personal wealth Rental income alone must be at least 100 of the monthly mortgage payment calculated at product pay rate on an interest only basis *See criteria on pages 15 and 16 for rental income requirements 20 CURRENT SVR 5.59

21 Consumer Buy to Let These products are regulated by HM Treasury under an adopted UK national framework and are not regulated by the Financial Conduct Authority (FCA). These products are not available for FCA Reguated Buy to Let or Business Buy to Let. Available for remortgage only. LTV ICR Stress Rate* Fixed XIB N/A , , , Basic valuation fee payable by applicant(s) The completion fee can be added to the loan up to the product LTV limit LTV ICR Stress Rate* DIB043 Currently , , , Basic valuation fee payable by applicant(s) The completion fee can be added to the loan up to the product LTV limit *See criteria on pages 15 and 16 for rental income requirements 21 CURRENT SVR 5.59

22 Enquiries and s Affordability calculator Use our affordability calculator to check borrowing requirements for your client, visit Submission Criteria Please ensure supporting documents are submitted as stated on the mortgage application form. fee - Cheque payable to The Mansfield Building Society or we will contact the customer directly to obtain the fee Last 3 months bank statements on all current accounts Latest mortgage statement Proof of income in retirement, e.g. pension statement or illustration, if the applicant is already retired or the mortgage term extends into planned retirement Right to Buy offer letter (if purchasing from the local authority) Proof of deposit If employed: Latest P60 Last 3 months payslips If self-employed: Copies of the last 2 self-assessment tax calculation forms (SA302)and/or copies of the last 2 Self Assessment returns Supporting information Please visit our website where you can find more information on making an application and download a supporting documentation checklist, our mortgage application form and other useful forms. Where you need to send any correspondence Department The Mansfield Building Society Regent House Regent Street Mansfield Nottinghamshire NG18 1SS For updates on applications that have been submitted and are being processed contact our Department on: Fax: mortgages@mansfieldbs.co.uk Lines open: 9.00am pm Monday to Friday 8.45am pm Saturday Procuration Please contact us, your network or your mortgage club for details of procuration fees paid 22

23 Affordability, Income & Expenditure Calculations Affordability calculator Use our affordability calculator to check borrowing requirements for your client, visit Income Age for use Expenditure Age for use Gross Basic Salary/Pension Income 100 Existing loan/hire purchase with more than 6 months remaining Guaranteed overtime, bonus, commission & shift allowances 100 Equity loan arrangements Regular overtime, bonus, commission & shift allowance 50 Credit cards/store cards/mail order Employment allowances: Employment weighting (i.e. London or regional); housing allowance/subsidy; and similar 100 Average amount of current account overdraft over last 3 months taken Car Allowance (but not mileage reimbursement) 100 if over 25 of net monthly income Income from 2nd job if permanent & employment longer than 6 months 100 Other secured lending 100 Net Profit (if self-employed sole trader or partner) 100 School fees or university fees 100 Gross Dividend (if shareholder/director of limited company) 100 Maintenance payments 100 Directors remuneration (if director of limited company) 100 Surplus rental income for Buy to Let properties/portfolio 100 Rent a Room Income - not main source of income and LTV <80 - not main source of income and LTV > Universal Credit/Invalidity/Disability Benefits 50 Working Tax Credit/Child Tax Credit (youngest child under 13) 50 Child Maintenance by Court Order*/CSA**/private arrangement** (youngest child under 13) 100^ Bursaries for Nurses/Other Professions 100 Ex Spouse Maintenance by Court Order 100 Rental payments under a Shared Ownership Scheme *Subject to sight of court order. **Appropriate documentary evidence of receipt of credits. ^ LTV 80 Total monthly payment Total monthly payment 3 of balance outstanding 3 of balance outstanding 100 When interest only and payments to be made to a repayment strategy

24 Valuation and Legal s Valuation Scale Valuation fees are payable to Gateway Surveyors and they will request payment when arranging the valuation. If the application does not proceed, the initial valuation fee will be non-refundable if the valuation has been carried out in the meantime. If we conduct a drive-by valuation, the valuation fee will be For most remortgages on residential owner-occupied properties with a maximum of 5 bedrooms, up to a maximum of 80 LTV, our panel valuer will only conduct a drive-by valuation. This means that the interior of the property will not be inspected and your client may not receive a copy of the drive-by valuation report. This ensures that costs are kept to a minimum. We do however reserve the right at all times to carry out a full valuation. Legal s Legal fees will be your clients responsibility unless stated in the product features. Remortgage Clients When remortgaging to us using a product where your client is responsible for payment of the fees your client can opt to use our nominated legal adviser for a fixed fee of 250. Under this shortened legal process the legal adviser will be acting on behalf of the Society and not on your client s behalf. Normal conveyancing checks including local and Land Registry searches will not be made as your client already lives in the property. Please note that the cost of postponing any charge or any other legal work relating to the property or any fees or charges imposed by the present lender will be your client s responsibility but we may be prepared to include these in the new mortgage with us. If your client decides to use their own legal adviser, the shortened legal process cannot be used. This is a summary of our lending criteria and may be changed at any time. Purchase Price (Not exceeding) Report and Valuation Home Buyers Purchase Remortgage 50, , , , , , , , , , , , , ,050 1,000, ,150 1,200, ,350 1,400,000 1, ,550 1,600,000 1, , For new enquiries, call