Please see below for detailed information about our lending criteria, and how to make the pre-application to completion process easier.
Affordability
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Affordability assessed Only relevant for Payment Term Lifetime Mortgage (PTLM) and Retirement Interest Only Mortgage (RIO) |
See Lending Standards |
Age
Information |
Hints, Tips and Caveats |
Accept/Refer/Decline |
---|---|---|
For Lifetime Mortgages and Retirement Interest Only Mortgage (RIO); Applicants must be a minimum of 55 years and if two applicants, the youngest must be a maximum of 90 years at the time of application and complete within 6 months of the youngest borrower turning 91 | RIO Lending Standards PDF: 282KB |
Accept |
For Payment Term Lifetime Mortgage (PTLM); Applicants must be a minimum of 50 years and if two applicants, the youngest must be a maximum of 74 years at the time of application | PTLM Lending Standards PDF: 362KB |
Accept |
Commercial
Information | Accept/Refer/Decline |
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|
Accept |
Bed and Breakfast where the property has not been modified and has no paid employees. |
Refer |
Credit check
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Interest Roll Up (IRTM) and Optional Payment (OPLM) Lifetime Mortgages; Missed Payments are acceptable | Credit and voters roll searches: incorporating a three-year check on the applicant(s) address history will be carried out on all applicants. |
Accept |
Retirement Interest Only Mortgage (RIO) and Payment Term Lifetime Mortgage (PTLM); Missed Payments
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|
Accept |
RIO and PTLM; County Court Judgements;
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A check on the applicant(s) address history will be carried out on all applicants. | Accept |
IRLM and OPLM; County Court Judgements; *Up to four CCJ’s per application will be accepted. |
Satisfied CCJ are disregarded, those not satisfied are subject to individual consideration. There will be no requirement to clear unsatisfied CCJs from the lifetime mortgage advance. The same CCJ held jointly by two applicants will count as one. | Accept |
PLTM & RIO; Defaults;
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Accept |
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PTLM & RIO; Bankruptcy/IVA/Sequestration
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|
Accept |
IRLM and OPLM; Bankruptcy/IVA/Sequestration
|
Refer |
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PTLM & RIO;
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Decline |
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IRLM and OPLM;
|
Accept |
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PTLM & RIO; Debt Management Plan
|
Accept | |
IRLM and OPLM;
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Accept | |
Applicants who have had a re-Possession take place |
Decline |
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Debt Consolidation | For PTLM & RIO debt consolidation is up to £30,000 For IRLM and OPLM this is unlimited. |
Accept |
PTLM & RIO; Applicants who have taken out a Payday Loan or Home Credit Loan | Decline | |
IRLM and OPLM; Applicants who have taken out a Payday Loan or Home Credit Loan | Accept |
Divorce
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Divorcing - loan purpose to pay off spouse |
Must be a full and final settlement order in place, ratified by the courts. The party leaving the property must do so on or before Completion date. |
Accept |
Separated couples |
We always need a Deed of Separation (for ex partners and spouses) – Full independent legal advice received by both parties and there must be evidence of a clean break between the partners. |
Accept |
Eligibility
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Maximum number of two applicants | Both applicants must be registered on the title at completion. | Accept |
Applicants must own and reside in the property as their main residence | Accept | |
Applicants who are married or in a civil partnership must apply in joint names. If the property is owned by one of them, then the spouse or civil partner who is not on the title deeds will need legal advice to be added to the title deeds and mortgage |
For Lifetime Mortgages; Unmarried cohabiting partners are acceptable with independent legal advice and a Deed of Consent For Retirement Interest Only Mortgage (RIO); Unmarried cohabiting partners needs to be added to the title deeds and mortgage. |
Accept |
Applicants who have leased the property to any third party | Decline | |
For re-mortgages, at application at least one applicant must have owned and lived in the property for at least 6 months (RIO only) | Accept | |
Joint tenancy or tenants in common |
Any percentage split is acceptable for tenants in common. Where Tenancy in Common, when a joint borrower dies, the remaining party is not able to draw from their drawdown facility until the title has been legally transferred into their sole names. |
Accept |
Applicants must be UK nationals. Foreign nationals must have indefinite leave to remain in the UK. We may ask for evidence of this | A passport will be accepted as evidence even if expired. Since leaving the EU we need sight of a permanent right to reside in the UK for EU members. |
Accept |
Family and friends
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Family or friends living in the property with the applicants | If family and age 17 and above and live in the property with the applicants;
|
Refer |
Lodgers
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Up to two lodgers may reside in the property. A lodger is a person who pays rent in return for accommodation which includes sharing a kitchen, bathroom, and other communal areas |
Lodgers must not have a tenancy agreement in place. A lodger must reside in the main residence - for example; not in annexe. Properties that contain 2 separate kitchens, with 1 for the purpose of a lodger will be declined. |
Accept |
Long-term care
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Joint applicants with one party in long-term care |
One partner can already be in a care home permanently – that person will need a Power of Attorney. The majority of the Initial Advance and any Drawdown must be for the benefit of the donor for example; to pay care fees. Proof from care home confirming residence and care costs will be required. |
Refer |
Power of Attorney
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Property and Financial Lasting Power of Attorney submitted with ID and Residency Proof for Attorney. |
Donor must have lost mental capacity. Each applicant must have a different independent Power of Attorney (for example; not the same). |
Accept |
|
Decline |
Tenants
Information | Hints, Tips and Caveats | Accept/Refer/Decline |
---|---|---|
Where a tenancy agreement exists, or a lodger has independent facilities | A lodger is a person who pays rent in return for accomodation which includes sharing a kitchen, bathroom and other communal areas. | Decline |