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Can we help?
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If you have any questions call us on
0800 5425411
Monday to Thursday 8.30am - 6pm
Friday 9.00am - 6pm
Saturday 9.00am - 12pm
Sunday Closed
If you have any questions call us on
0800 988 1561
Monday to Friday 8.30am - 6pm
Saturday Closed
Sunday Closed
We accept the following
We don't normally accept
If you are not sure whether we will consider the type of property in question, please contact us on 0800 22 05 68 or email furness.direct@furness-bs.co.uk
Please note the following:
You are strongly recommended to thoroughly verify the stated expenditure as delays may occur or the case may be declined where the information provided is deemed inaccurate.
The minimum age is 18. The mortgage term should normally end before the eldest applicant reaches their 80th birthday.
If your client is already retired the maximum loan to value we can consider is 70%. If the mortgage term will end after your client's retirement age, the maximum loan to value we can consider is 80%. The maximums are based on the oldest applicant’s age
All applications are fully assessed with a focus on affordability, based on the applicant’s full financial circumstances and also taking into account letting costs, taxation of rental profits and their own personal income and expenditure including any other mortgages held.
We do not apply an Interest Coverage Calculation (ICR) when assessing a new Buy to Let application, although the gross anticipated rent should be at least 125% of the interest charges at the initial pay rate.
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 75% (must include fees).
Interest only and Capital and Interest will be considered.
The minimum mortgage amount is £50,000 (refer for lower amounts)
The minimum valuation for Buy to let mortgages is £75,000
Please note that we do not accept applications that include Debt Consolidation for Buy To Let remortgages
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 (please refer to our checklist to see how to evidence this)
• the applicant(s) should usually own their own home (with our without a mortgage)
• any other mortgage payments e.g. residential mortgage should be included as outgoings on the Budget Planner.
• the security will be valued on a vacant possession basis
• 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 is required
• three months satisfactory bank statements are required
• if there are other existing Buy to Let properties, we will require:
o copies of the current Tenancy Agreements
o 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.
• there may be occasions where the applicant's overall indebtedness is considered too high based on their financial circumstances
For Regulated Buy To Let applications please see additional requirements below
We will consider a number of reasons for capital raising including
When assessing cases for contract workers the following criteria will apply
The maximum amount that will be considered for debt consolidation is £30,000.
The maximum overall LTV is 80%.
A written undertaking to repay the debts (signed by all applicants) must be provided by the acting Solicitor before releae of funds.
• maximum LTV 75%
• interest only or repayment basis considered
• the applicants must own their own home
• rent must be at least 125% of interest payable at the initial product pay rate
• total applicants’ earned income should be at least £30,000
• applications underwritten on a “full status” basis
• affordability fully assessed using net earned income plus 50% of actual /anticipated gross rent (either actual amount received or anticipated rent as advised by a specialised holiday let agent) less all personal outgoings and the proposed new mortgage payment including an allowance for rate rises
• maximum of 1 holiday let mortgage per borrower (the maximum to remain at one account overall including for joint borrowers)
• where the applicant also holds buy to let properties, the maximum permitted exposure with the Society will be £500,000 and 5 properties and in total 10 properties and £1m (including any exposure with the Society)
• 3 months satisfactory bank statements to be provided
• a satisfactory statement of Assets & Liabilities to be provided
• available mainland UK
• Minimum valuation £125,000 (60% product £84,000 minimum valuation)
• Minimum advance £50,000
• No occupancy restrictions to apply to the security
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, Sole trader/partner applicants with total income less than £50,000 may produce 3 years SA302 tax assessments and corresponding tax overview documents to evidence income, providing the income evidenced is stable or rising.
We will not accept applications for flats where the LTV is over 90%
Where the term exceeds either of the borrowers expected retirement age or their 69th birthday, whichever is the soonest, evidence of retirement income must be provided. Where the term plans to work later than this please contact us on 0800 988 1561 to discuss.
If your client is already retired the maximum loan to value we can consider is 70%. If the mortgage term will end after your client's retirement age, the maximum loan to value we can consider is 80%. The maximums are based on the oldest applicant’s age
The Society can offer mortgages on a Joint Borrower Sole Proprietor basis where one of the joint borrowers is not going to be a co-owner, ie. they will not be named on the title deeds.
All applications will need to meet the Society’s current lending criteria.
It is important that applicants are fully aware of the following important additional requirements:
All borrowers will need to seek separate and independent legal advice as part of the conveyancing process.
All borrowers must sign the mortgage deed in front of the Solicitor acting as the conveyancer. This must be on a face to face basis.
Release of one of the borrowers from the mortgage will require approval from the Society and be based on the mortgage being affordable by the remaining parties. Any legal costs incurred will be the responsibility of the borrowers.
The maximum loan is normally 4.5 x the borrowers' total income less the annual cost of any credit commitments on loans up to 95% LTV. All applications are subject to an affordability assessment.
We accept up to 95% LTV across mainland Eng, Wales, Scotland, on Islands connected to mainland by a bridge and on Isle of Wight.
Minimum loan £30,000
Maximum loan £1,000,000 (higher by negotiation)
Maximum loan limits are subject to the following LTV brackets
Minimum 5 years and maximum 40
(Must be repaid by oldest applicants 80th birthday)
| Maximum LTV per property | 75% LTV |
| Maximum LTV across a portfolio | 65% LTV |
| Minimum rental coverage across a portfolio | 140% of mortgage interest at pay rate |
| BTL experience required | 2 years experience as a BTL landlord |
| Minimum income | £40,000 (excluding rental income) |
| Maximum BTL lending with the Society | £750,000 and/or 5 mortgages |
| Maximum overall customer BTL borrowing | £2m mortgages/10 mortgaged properties. |
| Application requirements |
Normal disclosure of personal financial circumstances, and completion of an Assets & Liabilities Statement. In some cases we may also request a business plan and cashflow statement to be provided. |
We will consider applications on a regulated Buy to Let product specifically for letting to family members.
We will not currently consider applications from adult children (sons and/or daughters) purchasing their parents current residence and then renting it back.
Regulated Buy to Let applications are considered strictly on an affordability basis. Any rental income received will not be factored into our affordability assessment. We obtain the AST to ensure that if the property converted to a traditional buy to let the gross rent would be at least equal to 125% of the monthly interest payment at the initial pay rate).
Regulated Buy to Let applications are assessed in the same way as a standard residential mortgage. The Society stresses the mortgage repayment in order to assess the affordability of the loan in relation to the clients existing outgoings and factoring in the new Buy to Let.
The stated expenditure will be reviewed in conjunction with the bank statements and/or with statistical data, as appropriate. Applications will be declined where affordability cannot be proven on realistic expenditure.
The Society will consider applications on an Interest only or repayment basis
We will accept
Owner - occupied residential mortgages:- Standard Repayment Strategies
Where the repayment strategy is of a traditional nature eg regular premium endowment policy or equity PEP/ISA the maximum LTV is 70%.
• The repayment strategy must have been established for at least 3 years
• Satisfactory evidence of the repayment strategy must be provided in the form of a statement/projection of the maturity value at the end of the proposed mortgage term
The applicants should confirm that the proposed repayment strategy is on track by indicating on the application form
Owner - occupied residential mortgages:- “Non-standard” Repayment Strategies
Please note that the Society will consider some types of non-standard repayment strategy up to 60% LTV (i.e. those not mentioned above) but this will be on an individual referral basis.
Non Standard Repayment Strategies that can be considered are: sale of other properties, existing collective investments, sale of the subject property (downsizing) and use of a pension lump sum (up to 25% of the lower rate projected fund value).
We generally take the annual salary and applicants share of profit before taxation into account when working out how much we can lend. This will be dependent on a full accountants reference to confirm the feasibility and sustainability on using this calculation of both salary and profit before tax.
All shareholding Company Directors and those sole trader/partner applicants with total income greater than £50,000 must produce 2 years full accounts produced by a suitably qualified accountant.
Sole trader/partner applicants with total income less than £50,000 may produce 3 years SA302 tax assessments and corresponding tax overview documents to evidence income, providing the income evidenced is stable or rising.
Where profits have increased by more than 10% the Society may look to obtain further clarification from the accountant as to whether this level is sustainable and why.
The Society will not agree applications if there are concerns about the business even if the income is adequate and affordability is proven for the required mortgage.
Additional consideration will be required where:
• profit has reduced or increased significantly
• short term liabilities exceed liquid assets
• the business appears insolvent
• dividends have exceeded profit after tax
Available for mortgages that will be repaid within 2 years, the maximum term is therefore 2 years.
If interest only is required, a satisfactory repayment strategy must be in place. For Short Term Lending products sale of property may be an acceptable strategy. Please refer to the “Repayments Types” criteria for further information on acceptable repayment strategies.
The Society’s standard lending criteria will apply including a full affordability assessment.
Short Term Lending products are standard mortgage products. Monthly repayments will be required throughout the term of the mortgage - interest will not be rolled up. Repayments are available on the capital and interest repayment basis or interest only subject to an acceptable repayment strategy (see above)
| Purchase price not exceeding | Mortgage Valuation Report | Homebuyers' Report |
|---|---|---|
| £50,000 | £195.00 | £330.00 |
| £100,000 | £220.00 | £410.00 |
| £150,000 | £245.00 | £440.00 |
| £200,000 | £270.00 | £490.00 |
| £250,000 | £305.00 | £540.00 |
| £300,000 | £305.00 | £590.00 |
| £350,000 | £355.00 | £695.00 |
| £400,000 | £355.00 | £695.00 |
| £450,000 | £410.00 | £815.00 |
| £500,000 | £410.00 | £815.00 |
| £600,000 | £500.00 | £825.00 |
| £700,000 | £560.00 | £850.00 |
| £800,000 | £620.00 | £920.00 |
| £900,000 | £680.00 | £1,050.00 |
| £1,000,000 | £740.00 | £1,120.00 |
| £1,200,000 | £860.00 | £1,27500 |
| £1,400,000 | £985.00 | £1,430.00 |
| £1,600,000 | £1,110.00 | £1,580.00 |
| £1,800,000 | £1,230.00 | £1,735.00 |
| £2,000,000 | £1,350.00 | £1,890.00 |
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