Skip to main content

New Criteria

In order to give you confidence that your clients meet our lending criteria, we have developed this easy-to-use guide that provides information about our updated, full criteria, which has been expanded to help more of your clients. Key changes are shown below, but please make use of the full lending criteria available here.

Music Teachers –  new criteria

  • 6 months' history required. Combination of, or either, employed and self-employed income can be used. Average of last 6 months annualised.

Bank Nurse and Locum – new criteria

  • 6 months' history in area purchasing. Average of last 6 months annualised.

Regular shift allowance – new criteria

  • An average will be taken over the last 3 months pay slips

Lodger income – new criteria

  • Need to be supported by a primary income type
  • Use 60%
  • Only available for remortgage
  • 3 months' bank statements as evidence

Tax Credits – new criteria

  • Need to be supported by a primary income type
  • Use 60%
  • Lowest projection to be used
  • Up to age 13
  • Child and working tax credits can be used
  • Evidence to be full tax credit award notice

DLA/PIP – new criteria

  • Need ​to be supported by a primary income type
  • Use 60%
  • Has to be in relation to applicant/dependent
  • Evidenced on 3 months bank statements

CBTL - now available

Credit History – new criteria

  • Reduction/relaxation in years satisfied for defaults, Debt Management Plan

Reduced childcare – new criteria

  • Can consider if reducing within 6 months

Fixed term contracts – new criteria

  • We now require 12 months' contract history with the current employer or 18 months contract history in the same line of work. For our teacher applicants we can consider 12 months history of teaching before we can consider application (NQTs still classed as full time and permanent) 

NHS Banding/Enhanced Pay - new criteria

  • Can use 100%
  • Take average of 3 months' payslips

Stipend/bursary - new criteria

  • Now standard criteria
  • Can use 60% and has to have 12 months remaining
  • Must be supported by a primary income type

Pay rises - new criteria

  • Require 1 month payslip or award letter to consider

Lending into retirement - new criteria

  • Maximum LTV of 70%
  • £150,000.00 max loan cap removed – now under normal maximum loan

Supply Teachers – new criteria

  • 2 ​academic terms in area purchasing
  • Take total pay earned over last 2 terms, divide by total number of available weeks in terms and times by 38

Criteria clarification

Dependants – criteria clarification

  • Non working adults classed as adults not dependants*

*Adults over the age of 18 not named on the mortgage such as adult children, short-term partners and lodgers can be excluded where it is confirmed by the applicant they are self-sufficient and do not add to household expenditure.

Leasehold Properties – criteria clarification

  • Leasehold conditions confirmed

Property – criteria clarification

  • Confirmation of unacceptable property types
  • Flats with more than 6 storeys are not acceptable 
  • Studio flats minimum size 30 square metres

Sale undervalue – criteria clarification

  • Criteria conditions confirmed

New Build Warranty – criteria clarification

  • Acceptable warranties confirmed

Consistent  allowances - criteria clarification

  • Can use 100% (based on a 3 month average)

Specific criteria for being employed by family business - criteria clarification

  • Where shareholding is less than 20% applicant must have been employed by the firm for 3 months on the salary used for affordability and the level of income must be consistent for the type of work/experience of the applicant.
  • Where the applicants shareholding is 20% or more treat as self employed.

6 month back in the UK rule - criteria clarification

  • Now applicants only have to be living in the UK for 6 months not living and working

New job – criteria clarification

  • NQTs – 2 months before:
    Newly Qualified Teachers can complete 2 months before their role commences subject to evidence being received that they have passed their PGCE prior to the mortgage offer being issued.
  • Other applicants:
    Where an applicant is commencing new employment completion is unaffected subject to the mortgage being affordable on both the current salary and future salary. Where affordability is reliant on the new salary completion can take place 2 months before the new role commencing subject to the applicant being currently in employment.

Require own 5% deposit if using builders deposit/forces HTB  - criteria clarification

4 applicants named on mortgage – criteria clarification

  • 100% income from 2 earners can be used with 50% of one further applicant

Interest only - criteria clarification

  • No longer offered

Second Job – criteria clarification

  • Only require the two to be in conjunction for 3 months and can use 100% of both incomes
  • Unless zero hours/temporary – can only use 60% and would need 2 years history of zero hours

NQT – Maternity cover - criteria clarification

  • Where 1 year fixed term contract offered as Maternity cover, and contract states can be ended earlier on return of post holder, this is acceptable subject to the Head Teacher confirming it is anticipated employment will run for the full academic year.