We accept the following:

• Freehold/leasehold houses
• Leasehold flats
• New build houses
• Modern methods of construction
• Ex-local authority houses
• Buy-to-Let and Holiday-let properties
• Holiday/second residential homes

We don't accept

• Freehold flats
• Ex-local authority flats
• Tower block flats
• Land for rent
• Properties of non-standard construction
• Properties that fall under ‘House of Multiple Occupation’ legislation
• Commercial properties
• Student letting properties
• Properties defined as being of defective construction

On referral we will consider:

• New build flats
• Flat roofed properties (subject to valuer comments)
• Flats above commercial (no food/hospitality related business)

If you are not sure whether we will consider the type of property in question, please contact us on 0800 988 1561 option 1 or email furness.intermediaries@furness-bs.co.uk.

Please note the following:

• Our affordability calculator will assess affordability of the case purely based on the information you input.
• The Society does not use an automated affordability model.
• All applications are manually underwritten by our experienced underwriters.
• 3 months bank statements must be supplied with the application.
• The stated expenditure will be reviewed in conjunction with the bank statements and /or with statistical data as appropriate.
• Where the stated expenditure does not reflect that shown on the bank statements or appears otherwise unrealistic you will be asked to submit revised expenditure details.
• A case will be declined where affordability cannot be proven based on realistic expenditure.

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.

However, where the term exceeds either of the borrowers expected retirement age or their 69th birthday based on age next birthday, whichever is the soonest, evidence of retirement income must be provided. Where the applicant plans to work later than this please contact us on 0800 988 1561 option 1 to discuss with our BDM team.

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.

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 80% subject to product limit (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.
• Minimum EPC rating must be ‘C’ for 80% LTV applications

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 a 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.
• 3 months of satisfactory bank statements are required.
• If there are other existing Buy-to-Let properties, we will require:
  • Copies of the current Tenancy Agreements.
  • Latest annual mortgage statements.
• Applications will be accepted on new-build flats subject to valuer comments on the block in which they are located.  All applications on new-build flats are subject to referral to a senior underwriter.
• There may be occasions where the applicant's overall indebtedness is considered too high based on their financial circumstances.

We will consider a number of reasons for capital raising including:

• Home improvements
• Further education fees
• Purchase of other properties
• Holidays
• New car
• Debt consolidation - see separate criteria for this

We will not consider capital raising for payment of a tax bill or for business purposes or to replace cash savings or gifts

When assessing cases for contract workers the following criteria will apply:

• For new employers, the contract must be for a minimum period of 12 months and have at least 6 months remaining at the time of application.
• The current contract must have been renewed at least once with the same employer and have at least 6 months remaining at the time of application.
• The maximum LTV will be 80%.
• Full details of the applicants work history for the previous 2 years should be provided (this could be in the form of a CV). The applicant must have been in the same type of employment for the past 2 years.
• Copies of contract(s) covering the last 2 years must be provided and must not show any significant breaks in employment.
• A previous employer's reference will be requested if the applicant has been employed (PAYE) within the last 2 years.
• The Society's standard income criteria will be used to assess the applicants' income.

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.

The Society's ‘Heartland’ is located in the Lake District and Northwest, with a postcode starting with LA.

We will accept:

• Capital and interest.
• Interest-only (see repayment strategies below).
• Part C&I and part interest-only (using interest-only repayment strategies below).

Owner-occupied residential interest-only mortgages: Standard repayment strategies

For repayment vehicles with 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 e.g. 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 interest-only mortgages: “Non-standard” repayment strategies

Potentially suitable “non-standard” repayment strategies are:

• Sale of other properties
• Collective investments
• Downsizing
• Use of a pension fund
• The maximum LTV is 60%

Satisfactory evidence of the repayment strategy must be provided as follows:

• Collective investments – the most recent investment statement must be provided and the plan must have been established for at least 3 years.
• Sale of other properties - the applicant must confirm the full address and postcode and satisfactory evidence of the current property value.  Satisfactory evidence may be a recent or historic valuation of the property relating to the original purchase. The current value of the property to be used as a repayment strategy should be at least equal to the balance of the proposed interest-only mortgage.
• Sale of other land - by referral.
• Sale of subject property (downsizing) - The applicants must demonstrate that a suitable property is in their target market to enable them to downsize. The minimum equity required at the time of application is £300,000 – unless the property is located in the Society’s Heartland, where the minimum equity requirement is £100,000. The ‘Heartland’ is located in the Lake District and Northwest, postcodes included in this definition are CA, LA, FY, PR, BB, BL and WN.
• Use of pension scheme lump sum. The pension plan must have been in place for at least 10 years at the time of application (or suitable evidence supplied that the previous pension plans were in place during this time). A projection of the value of the pension plan must be provided and it must equate to at least four times the mortgage amount based on the low projection rate.

A statement of Assets and Liabilities must be provided by the applicant in order that the reasonability of the strategy can be ascertained.

• Maximum LTV 75%.
• Interest-only or repayment basis considered.
• The applicants must own their own home. Rent must be at least 125% of the interest payable at the initial product pay rate.
• Total applicants’ earned income should be at least £30,000.
• Applications are 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 4 Holiday-Let mortgages per borrower.
• Where the applicant also holds Buy-to-Let properties, the maximum permitted exposure with the Society will be £750,000 and 5 properties and in total 10 properties and £2m (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.
• Minimum advance £50,000.
• No occupancy restrictions to apply to the security.
• Applicants can have up to 90 days personal use each year.
• Must have a minimum EPC rating of ‘E’

• 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 the same employer (both applicants).
• Unencumbered deposit.  We will also accept gifted deposits from immediate family ie the borrower’s spouse, civil partner, parents, grandparents, siblings, children and grandchildren. It must be confirmed that the funds are a genuine gift and non-repayable.
• 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.  This is usually where a parent(s) wishes to assist a child purchasing a home, siblings will be considered on referral.

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 supporting borrower cannot reside in the property.

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 England, Wales and Scotland, on Islands connected to the mainland by a bridge and on the 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:

• Max LTV of 95% loans up to £500k
• Max LTV of 90% loans up to £750k
• Max LTV of 80% loans up to £800k
• Max LTV of 70% loans up to £900k
• Max LTV of 65% loans up to £1m

• Minimum 5 years and maximum of 40 years
• Must be repaid by oldest applicants 80th birthday (see age section above if either applicants’ age exceeds the stated retirement age or age 69 based on age next birthday)

See also Buy-to-Let mortgages

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.

Where the property is let to a family member without an AST the tenant(s) will be required to sign the age 17+ waiver form

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 of 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. The Society may also require management accounts for the current year’s trading.

Sole trader/partner applicants with a total income of 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 also requires the latest 3 months business bank statements

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

• This product is designed for applicants who wish to facilitate a purchase before their existing home is sold, other similar scenarios considered but not where development finance or commercial lending would be more appropriate

• Available for mortgages that will be repaid within 2 years, the maximum term is therefore 2 years.  The product is ERC free.

• 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).

Please note that there is a free valuation package available on standard remortgages . This includes a basic valuation up to a maximum fee of £2,000 or £3m value.

The Society will consider applicants currently in a probationary period – provided an acceptable track record can be established. The applicant would need to have been with their previous employer for at least 12 months. There must with no gap between positions - and both the new and previous role must be in the same line of work. Previous income/employment would need to be evidenced.

Basic income should only be used for income multiples and affordability.

Minimum income £20,000.

For applicants employed within the Police Force – with a 2 year probationary period – we can consider provided they are at least 12 months into the role.

The following should be referred to a Senior Underwriter:

• Applications over 80% LTV
• Where an applicant has been in their new role for less than 3 months

Applicants who are on fixed term contracts within professional occupations (doctors, solicitors, teachers etc) are generally acceptable – provided they can evidence a 2 year track record in the same line of work. The current contract should have at least 6 months remaining – unless employer confirmation has been obtained that indicates the contract will be renewed for a period not less than 6 months.

Applicants working in other occupations/fields of work – or who cannot evidence the required track record - should be referred to a Senior Underwriter– so that the case can be assessed on its individual merits.

Applications over 80% will need to be referred to and agreed by the Society’s mortgage indemnity insurers - or a Senior Underwriter under delegated approval authority.