The applicant(s) must usually have owned the property to be mortgaged for a minimum of 6 months at the time of submitting the application. Applicants will be required to confirm in the application form, the date of their purchase and the price they paid for the property.
Capital raising applications will be considered up to a maximum LTV of 80%, subject to full disclosure in the application form of all capital raising purposes. Capital raising to buy a further share of equity in the property to be mortgaged, for example to buy out a joint borrower or final share of a shared ownership or Help to Buy property, will be considered to 95% LTV.
Where the loan purpose is for the clearance of other debts, affordability will be assessed on the current commitments based on the total indebtedness at the time of the application or alternatively, if feasible, the debt repayment funds will be payable directly to the creditor. Depending on the types of other debts being repaid, applicants may be required to obtain independent legal advice. For the purposes of product selection, the product selected must be from the Tailored Approach range if it is necessary for the Society to make part of the advance monies payable to creditor(s).
Where the loan purpose is for home improvements we will consider higher percentage applications subject to funds being released in up to 2 stage payments resulting in LTV not exceeding 80% (or other LTV limit as described in section 4) of the confirmed value at any time. Reinspections will be required when a stage payment is requested and when the works are complete, for which there are fees payable. For the purposes of product choice, the LTV would then be classed as not exceeding 80%.
Posted in: Guide to Terms & Underwriting