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Lending Criteria | Loan Parameters | LTV Details

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Applicant Details

Loan Details

Valuation Fees

Identity Verification

In order to comply with current regulations it is necessary for new customers to provide proof of identity.  We must obtain proof of your name and either your address or date of birth.  All documents provided must be originals or certified copies.  It is preferable not to send original documents in the post to us.  Documents can be certified by a Solicitor, Banker, Accountant, Authorised Financial Adviser, Teacher, Doctor, Minister or Post Office Master.  Documents printed off the internet are not acceptable.

If the appropriate documentary proof is not available please refer to a member of staff for assistance.  We will keep a copy of the identification verification you provide.  These records are required to fulfil our statutory obligations and will not be used for any other purpose.

Lending Criteria where loan exceeds 80% LTV

• Repayment basis only.
• Applicants on Voters Roll for 1 year (both applicants).
• Evidence of address history to be provided for the last three years residence (unless on Voters Roll for 3 years).
• 3 months bank statements – never exceeded overdraft limit/ no returned items.
• Excess of income over expenditure of at least £200 evidenced on the Budget Planner based on the mortgage payment calculated at the initial pay rate.
• Permanent employment 6 months with same employer (both applicants). Unencumbered deposit.
• Clean credit searches - no missed payments, defaults or CCJs etc.
• Self employed – 2 years accounts – not more than 12 months old.

Interest Only Lending Criteria

Owner - occupied residential mortgages:- Standard Repayment Vehicles

Where the repayment vehicle is of a traditional nature eg regular premium endowment policy, equity PEP/ISA or personal pension the maximum LTV is 70%.

Additionally, satisfactory evidence of the repayment vehicle must be provided, which may be:

• a KFI showing the projected value at the end of the proposed mortgage term if a new plan is being arranged in connection with the proposed mortgage
• a statement/projection of the maturity value at the end of the proposed mortgage term if an existing plan is to be used

The applicants should confirm that the proposed repayment vehicle is on track by indicating on the application form

Owner - occupied residential mortgages:- “Non-standard” Repayment Vehicles

Please note that the Society will consider some types of non-standard repayment vehicle (ie. Those not mentioned above) but this will be on an individual referral basis. Please contact us on 0800 22 05 68 or e-mail furness.direct@furness-bs.co.uk if you wish to discuss a case.

Buy to Let

We do not consider applications solely on a self-financing basis, but look at the overall situation, including any other mortgages that the applicant(s) may have when assessing the application.  The general maximum permitted exposure with the Society will be £500,000, 5 properties, and in total £1m, 10 properties (including any exposure with the Society).  

Assessment of overall affordability is based on ALL mortgages (both current and proposed).

Buy to let mortgages are considered on properties in mainland UK. 

The maximum LTV is 70%.  (Subject to a maximum Interest Only advance of £250,000)

The following criteria should be met:

• The application form should be fully completed and all information and evidence should be obtained in the same way as a residential mortgage application.
• The applicant(s) must have total earned income of at least £20,000 pa
• The applicant(s) must own their own home (with our without a mortgage)
• Rent must exceed the interest only repayment at the Society’s SVR. (Currently 5.44%)
• Any other mortgage payments e.g. residential mortgage should be included as outgoings on the Budget Planner.
• 50% of the rental income relating to the subject property may be included as income on the Budget Planner.
• The rental income should be at least equal to 125% of the monthly interest payment.
• The security will be valued on a vacant possession basis
• The valuer will be asked to comment on the suitability of the property for rent, the rental income achievable, and the market for such rental properties in the area.
• The Society will only accept properties that are let, or are to be let on an Assured Shorthold Tenancy of between six and twelve months duration
• A statement of Assets and Liabilities to be provided.
• Six months satisfactory bank statements
• If there are other existing Buy to Let properties, to establish that they are self-financing, we will require:
  • Copies of the current Tenancy Agreements
  • Latest annual mortgage statements

• Applications will not be accepted on “New-build” flats. i.e. Any flat less than five years old or which has been previously unoccupied.

Checklist Information

• Completed mortgage application form
• Last payslip and P60
• The previous lender’s last annual statement provided this shows 12 months individual payments. If it does not, then the last 12 months bank statements showing a payment made each month should also be submitted
• Last 3 year’s accounts for self-employed applicants
• Cheque for valuation/admin fee payable to Furness Building Society if applicable

Head Office: 51-55 Duke Street, Barrow in Furness, Cumbria. LA14 1RT

Freephone 0800 22 05 68 Fax: 01229 839840

Email: furness.direct@furness-bs.co.uk