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All the facts and figures on one handy page
Where a customer is remortgaging to Digital Mortgages by Atom bank and wants to borrow extra funds it should be allowed, up to standard LTV limits and within the context of our current product offering, providing we’re happy with the purpose of the loan and the application meets our affordability criteria.
Examples of acceptable loan purposes include (but are not limited to):
Structural/non-structural home improvements
Repayment of a Help to Buy equity loan (should be input into the system as “repay second charge”)
Buying final share in shared ownership
Buying the freehold or a new extended lease
Buying land to extend the current property
Purchasing another property. Please note that details of the property will be required (as we do not accept applications for speculative property purchase) including, but not limited to:-
Buying a car, caravan, or boat
We’ll complete a reasonability assessment based on the amount and purpose of the additional borrowing and may seek additional evidence for the borrowing or, in some circumstances, we may not be able to lend.
We won’t allow additional borrowing or the option to raise capital for the following, non-exhaustive, list of reasons:
Purchase of another property where a sale is yet to be agreed
The purchase of stocks and shares
If the borrowing is to support home improvements and is more than 15% of the property value, we may require cost estimates prior to approval. Please see the Home improvements section in our lending criteria for more information.
If you are unsure whether we’ll accept the purpose of borrowing, please contact our dedicated Intermediary Support team.
In all cases we will appoint a conveyancer to act for Digital Mortgages.
Where the product selected is fees assisted, the conveyancer will be automatically allocated from our restricted panel. The “fees assisted” element of the product covers the base legal fees only and excludes disbursements and any additional fees. The customer will have to pay the cost of any additional fees. These will be confirmed to the customer by the conveyancer. Below is a non-exhaustive list of circumstances that would incur additional legal fees:-
Conveyancing charges explained
Download the fees leaflets from LMS to see the fees that apply to your cases:
All applicants must have, and be able to evidence, a three year address history.
All applicants must have been resident in the UK for at least the last 12 months.
The only exception to this is where the applicant is in the British Armed Forces and has a current BFPO address, along with a three year BFPO or UK address history. See BFPO section for more information.
Applications with more than one instance of adverse credit history will be declined.
Digital Mortgages may be prepared to consider applicants with single, isolated and minor instances of adverse credit history, and where likelihood of recurrence is assessed as low, in line with the table below:
|Adverse credit found||Policy|
|County Court Judgements (CCJs)||
|Individual Voluntary Arrangement (IVA) / Trust Deed||
Mortgage / secured loan arrears
(by this we mean any instance where agreed repayments to the account are made later than their due date)
|Arrears on an unsecured loan or hire purchase
(by this we mean any instance where agreed repayments to the account are made later than their due date)
|Arrears on a credit card, store card, mail order, communications accounts, or exceeding an authorised overdraft limit.
(by this we mean any instance where agreed repayments to the account are made later than their due date, where an overdraft balance has been greater than the overdraft limit or where cheques, direct debits and standing orders have been bounced to keep an account in order)
|Debt Management Plan||
Before you submit any application we recommend using our affordability calculator. This will provide you with a predicted borrowing figure for your clients, based on their personal circumstances.
Digital Mortgages use a comprehensive affordability calculation which takes into account the applicant's levels of income and expenditure, but will always be subject to a maximum loan amount of:
The applicants will need to provide accurate expenditure information including:
Where an existing fixed term credit facility has less than six months to run then we'll normally disregard that, however this still needs to be keyed onto the application.
All information supplied will be cross-referenced against the applicant's credit bureau record, bank statements and proof of income to verify that everything's been declared and that the figures are accurate.
We don’t currently accept applications for mortgages against assignable contracts.
We don’t currently accept applications for mortgages against back to back transactions.
If an applicant has existing BTL mortgages that will continue on completion of the new residential mortgage both the BTL mortgage payment and the related rental income will be captured. These values will be used in the calculation of affordability as follows:-
100% of mortgage payment will be included in Committed Monthly Expenditure; and
50% of gross rental income will be included in Income
If an applicant receives rental income from an unencumbered property 50% of the rental income will be included in Income.
We don't currently accept applications for mortgages to be used as bridging loans.
We don't currently offer BTL.
When a purchase is at a discounted value from an immediate family member, we will base the loan to value on the valuation of the property. The maximum loan amount is the discounted purchase price.
Unless your customer’s Mortgage Offer states otherwise, the property must be their main residence and should not be let or sublet without our permission.
They can ask for CTL at any time if they want to let out some or all of the property. We’d usually expect this to be a minimum of six months after completion but we’ll base our decision on the customer’s personal circumstances and our current lending criteria at the time.
We may need to complete a rental valuation on the property, which your customer may have to pay for. Please view our price list for further information.
If we agree that your customer can let the property out, we may charge a Consent to Let fee, to reflect the increased risk involved in rental properties. Please view our price list for further information.
Digital Mortgages can consider certain forms of non-permanent employment or temporary contracts as equivalent to permanent employment. We will consider applications in either of the acceptable categories subject to the provision of the following information:
Previous contract history
Length of time with current employer
If the contract has been renewed before
Remaining term of the current contract
The prospects of renewal/ obtaining alternative employment in the same type of work at a similar salary
Whether the contract is connected to a specific project.
Professional contractors e.g. IT, business consultancy, project management
Digital Mortgages contractor policy is designed to recognise a hybrid employment type that sits between Permanent Employment and Self-Employment for professional individuals.
Minimum day rate £250 or minimum annual income is £50,000
Evidence that such temporary contracts have produced a regular income flow over at least one year, either through a single contract or a combination of contracts (with less than two months ‘downtime’ between each)
Must have a minimum of one years previous employment in same field (which they could evidence by way of previous P60)
Applicant must supply their annual income figure and their day rate
Digital Mortgages will assess annual income as the lower of day rate x5 x46 and supplied annual income. The assessed value will be used in calculation of FDI
If the above criteria cannot be satisfied then contract workers will be treated as self-employed therefore two years' accounts or two years' HMRC self-assessments (SA302s or Online Tax Calculations) will be required to evidence income.
Bank or supply contracts e.g. bank nursing, supply teaching, etc.
Digital Mortgages recognise employment where qualified professionals are engaged in irregular working patterns, especially key workers, and will accept income from these workers based on the following criteria:-
Minimum annual income is £20,000
Employment directly or via an agency are both acceptable
Evidence can be shown that such temporary contracts have produced a regular income flow over at least one year, either through a single contract or a combination of contracts (with less than two months ‘downtime’ between each)
Must have a minimum of one years previous employment in same field (which they could evidence by way of previous P60)
Applicant must supply their annual income figure. Where an applicant has contract income in addition to salaried income in the same field (e.g. nursing overtime) the applicant can be considered as employed and the total income can be used in calculation of FDI
Zero hour contracts and agency workers
Digital Mortgages recognises employment where qualified professionals are engaged in irregular working patterns and zero hour contracts, and will accept income from these workers based on the following criteria:
Minimum time in current employment 24 months
Last month’s payslip and last 2 P60s
Eligible income will be the average of the last 2 years income evidenced by P60, unless the
latest P60 figure is lower or the annualised YTD figure from the latest payslip is lower then the
lower figure will apply.
Fixed Term Contract
Digital Mortgages recognises employment where qualified professionals take on shorter, defined employment contracts and will accept income from these workers based on the following criteria:
• Minimum £25k annual income
• Minimum 12 months contracting experience,unless there is less than 6 months remaining on
the current contract in which case minimum 24 months contracting experience will be
• Minimum 12 months experience in a similar field
• Latest month’s payslip and last P60 will be required as proof of income.
If none of the above criteria can be satisfied then contract workers will be treated as self-employed therefore two years’ accounts or two years’ HMRC self-assessments (SA302s or Online Tax Calculations) will have to be provided to evidence income.
Construction Industry Scheme (CIS)
Those working under the CIS will be treated as self-employed, and therefore two years’ accounts or two years’ HMRC self-assessments (SA302s or Online Tax Calculations) will have to be provided.
Every mortgage application with Digital Mortgages will have the legal work for the transaction (known as conveyancing) completed by one of the conveyancing firms who make up Digital Mortgages' residential mortgages legal panel.
Fees Assisted Products
For applications on fees assisted products, the firm that completes the legal work is determined by our panel manager, LMS, who will allocate the case to a panel firm based on the type of application, the location of the property and a number of other factors. We are unable to influence or dictate which firm is allocated to an application.
Please note that the fees assisted legal work covers basic legal fees only, and any additional or non-standard work will be subject to charge, payable by the applicant(s).
If a customer does not wish to use the law firm appointed by Digital Mortgages they either need to select a non-fees assisted product, if available, or proceed on a separate representation basis. Please see below.
Non-Fees Assisted Products
For applications on non-fees assisted products, the customer(s) will be able to select a conveyancing firm from Digital Mortgages’ general legal panel, operated by LMS. Any costs associated with the conveyancing will need to be negotiated directly between the customer and the selected firm.
You will be able to make your selection at the point of application, via a search tool using the Name, Town or Postcode of the firm.
If the preferred firm is not on the Digital Mortgages panel, they can apply to be added via LMS conveyancer zone. Providing the firm meets our panel criteria, LMS will add them to our panel on receipt of the relevant panel application documentation. Please note that until a firm is successfully added to the panel, the application cannot be submitted using that firm and you should wait until they have been approved, do not submit the case by selecting a different conveyancer if you do not intend to complete with that firm. When a firm is selected at application, they will be instructed immediately and automatically on application submission. The acting conveyancing firm can only be changed in exceptional circumstances.
If the preferred firm is not on the Digital Mortgages panel, and is not eligible to join, then the options available to the customer(s) are either to select another firm from the Conveyancing Panel or to proceed on a separate representation basis.
For applications on fees assisted products where the customer does not wish to use the Digital Mortgages allocated conveyancer for their own legal work, or for non-fees assisted products where the customer’s preferred firm is not on Digital Mortgages Conveyancing Panel, the customer(s) will be able to proceed on a separate representation basis.
This means that whilst the customer’s legal work is completed by their own conveyancer, Digital Mortgages will also instruct a conveyancing firm (from our panel) to oversee the work completed by the customer’s firm.
Please note that where separate representation is selected, the customer(s) will be liable for the cost of their own conveyancer as well as the cost of the Digital Mortgages conveyancer.
To understand the fees associated with conveyancing, please view our price list and the conveyancing fees leaflets.
Where a customer(s)'s level of credit card usage over the last 6 months is assessed as being high, their application will be declined where any of the following conditions are met:
All mortgage applications are credit scored. To determine the score, we use a combination of the customer’s application data and credit bureau data to help us to build a clearer picture of the applicant’s finances.
We use Callcredit to inform our credit searches.
If the applicant can’t satisfy our minimum acceptable mortgage score requirement, then the application will be declined.
The applicant's unsecured debt to income ratio will be calculated as the total monthly payments to unsecured credit commitments / net monthly income.Where current DTI is more than or equal to 50% the application will be declined.
The DIP provides a preliminary agreement that the applicant meets our main lending and affordability criteria. It will detail how much we may lend, is valid for 90 calendar days and is subject to:
A full check against our lending and affordability criteria
The receipt of a full and satisfactory property valuation
The supplemental information being approved in order to progress to a mortgage offer
Completing a DIP will place an enquiry footprint (a soft footprint) on the applicant’s credit file.
A DIP is not a guarantee of the overall acceptability of the mortgage application. Each application is subject to final approval by our underwriting or mortgage processing team, who will carefully assess all applicant information together with supporting documentation and evidence concerning both the applicants and the property.
On submission of the Full Mortgage Application, an updated credit bureau report will be requested and a “hard” credit search footprint will be applied to the customer’s credit file. Please note that any significant changes to the customer's credit record, including changes in credit account performance and increases in credit commitments may impact the overall lending decision and/ or maximum loan amount available.
For affordability, any persons who are dependent on the applicant(s) but who are not named on the mortgage must be entered as a dependent on the application.
An adult dependent can be defined as:
A husband, wife, partner or civil partner who relies either entirely or almost entirely on an applicant for financial support and is not named on the mortgage
A relative such as a parent or grandparent who relies either entirely or almost entirely on an applicant for financial support and is not named on the mortgage
Where the adult dependent is named on the mortgage application, they should not be input as a dependent as they will already be factored into the affordability calculation
Any child (aged under 17) who is dependent on the applicant(s) should be declared on the application as a “dependent child”.
Unacceptable deposit sources include, but is not limited to:
We'll accept a gifted deposit where:
To satisfy our policy requirements you'll need to submit a completed Digital Mortgages declaration form at application. This is available at https://residential.digitalmortgages.net/documents.
As part of the conveyancing process, the gift donor(s) will be required to complete a standard gifted deposit form as provided by the conveyancer. This will include an enquiry as to the source of funds.
For residential applications, we might ask for proof of deposit, for example if a first time buyer is looking to put down an unusually large deposit.
British and EEA (European Economic Area) nationals must have been living in the UK for a minimum of 12 months prior to application to be considered for a mortgage with us. Due to EEA and/ or EU agreements, those from the following countries will be treated as EEA nationals for mortgage purposes:
Applicants who have not been resident in the UK for at least 36 months will be restricted to 75% LTV.
UK nationals who have been working overseas in a similar role to their current employment and who have been back in the UK for at least 12 months are not subject to a restricted LTV and will be assessed against standard criteria.
Applicants must provide a 24 months employment history, and will be expected to have a minimum 12 months in employment. A minimum one month will be required in their current role, supported by at least one payslip from their current employer and must be considered a permanent employee. Employment references may be requested.
If the applicant has been employed for less than 24 months, they will need to provide details of their employment history within this time.
Digital Mortgages can lend to applicants currently in a probation period subject to the following criteria:
For primary earners i.e. the lead applicant, the following will apply:
If the applicant has been employed in their current role for less than six months regardless of them being in a probationary period or not Digital Mortgages will require:
12 months continuous employment in the previous role
A minimum provision of the first full month's payslip in the new role.
If the applicant has been in their current role for more than six months, normal criteria will apply.
For secondary applicants the following will apply:
If the applicant has been employed in their current role for less than three months regardless of them being in a probationary period or not Digital Mortgages will require:
12 months continuous employment in the previous role
A minimum provision of the first month's payslip in the new role.
Pay rises and job offers
Where a pay rise is due to take effect within one month of application it can be considered subject to the provision of a letter from the applicant's employer (we'll accept a letter addressed to the applicant from the employer as confirmation). If the applicant works for a family business future pay rises cannot be considered. Employment references may be requested.
Job offers cannot be considered.
For Contractors and Self Employed applicants, please see the relevant section of our lending criteria.
We don't currently lend to British expatriates, as applicants must have been resident in the UK for at least the last 12 months in order for us to consider lending.
The only exception to this is where the applicant is currently in the British Armed Forces with a BFPO address, and where the last three years' addresses are either UK addresses or BFPO addresses.
We define a FTB as someone who has never previously held a residential or BTL mortgage in the UK.
All applicants must meet our definition of a FTB, to apply for a FTB product.
For parental leave (including maternity, paternity, adoption)
For other fixed term leave (eg career break or sabbatical)
For your information, we call further advances 'additional borrowing' in our customer communications (including their T&Cs and documentation).
An existing customer may want to seek a further advance from us.
Any request for a further advance will be subject to our current product offering and our lending criteria at the time of application, and will be subject to an affordability assessment. For our latest further advance rates and products, please contact our TBDM team.
A further advance won’t be permitted within six months of completion of the original mortgage, where there have been, or are any arrears on the current mortgage account or where a second charge is held on the property. All applications will be subject to our standard maximum LTV levels and a minimum loan amount of £25,001.
For all enquiries about this please contact our Telephone Business Development team on 0333 399 0055
Examples of acceptable loan purposes include:
Examples of unacceptable loan purposes include (but are not limited to):
In some circumstances there may be additional legal costs to be paid. Our further advance products come with a free basic valuation, any upgrade to this will carry a cost. Where possible we’ll use an Automatic Valuation Model (AVM).
If the customer's application includes capital raising of more than 15% of the property value for home improvements, the maximum LTV will be 85% and the mortgage amount will be capped at 80% of the maximum amount allowed by our affordability calculator.
If a customer wants to carry out home improvements or remedial work on a property, and requires a further advance or capital raising of more than 15% of the property value, we'll need written estimates, along with sight of any necessary planning permissions or building consents.
Please note, further advances are only available on selected Digital Mortgage products. If you are unsure if your customer is eligible, please contact us.
We're unable to lend on the future value of a property, so all lending will be based on the current value of the property.
Where we’re unable to do this, we’ll need to see the following documents (exactly what we need will be advised as part of our automated Decision in Principle):
|Personal ID (government issued document with a photograph)||Address ID|
|Current Passport||Current UK (photo card/old paper style) driving licence|
|Current UK or EEA photo card driving licence||Statement dated within last three months from a UK authorised financial services firm. We will accept full statements printed from the internet but not screen prints|
|Firearms certificate or shotgun licence||Building Society passbook|
|Identity card issued by the Electoral Office for Northern Ireland||Utility bill (not mobile phone) dated within last three months. We will accept full statements printed from the internet but not screen prints|
|Recent evidence of entitlement to a state or local authority funded benefit (including housing benefit and council tax benefit), tax credit, pension, educational or other grant|
|Local authority council tax statement or demand for payment
|Recent correspondence (dated within last 3 months) from HMRC|
|Residence permit issued by Home Office|
All applications will be subject to verification of income.
Please ensure the main earner is entered as applicant 1 when keying the case.
As a digital bank, Digital Mortgages may, in certain cases, use information held at the credit bureau to verify income. If we are able to do this, we won’t ask for any income verification on the DIP.
When you have completed the DIP you will find a list of requirements unique to the case generated in our broker portal.
In this table you’ll find the types of income we accept and the percentage used to assess affordability and standard evidence required. Where possible we’ll verify the applicant’s income with the credit bureau so you won’t have to send us any supporting documents.
If we can’t do this we reserve the right to request further evidence if deemed necessary, such as bank statements or formal ID. Where bank statements are requested they must show income and expenditure across a full month.
|Income type||Percentage allowed||Evidence Required|
|Basic salary||100%||The latest monthly payslip|
|Area allowance||100%||Last three months payslip|
| Car allowance
||100%||Last three months payslip|
| Shift allowance
||100%||Last three months payslip|
|Housing allowance from employer||100%||Employment contract and three months payslips|
|Guaranteed overtime||100% (last year average)||The last three payslips/P60 showing evidence of relevant split between salary, overtime, bonus and commission|
|Guaranteed bonus/commission||100% (last year average)||The last three payslips/P60 showing evidence of relevant split between salary, overtime, bonus and commission|
|Sole Trader Net Profits||100% (average of last two year's)||Two years SA302s or Tax calculations combined with Tax year overviews|
|Partnership Share of Net Profit||100% (average of last two year's)||Two years company accounts or Accountant's certificate*|
|Limited Company Director's Share of Net Profit||100% (average of last two year's)||Two years company accounts or Accountant's certificate*|
|Limited Company Director's Salary||100%||Two years company accounts or Accountant's certificate*|
|Limited Liability Partnership Income (LLP)||100%||
Two years company accounts.
Where the appointment is too recent to be shown in the accounts, income can be validated by a letter from the managing partner confirming the applicant's partnership share and income for the most recent financial period.
|Pension/annuities||100%||An annual statement of pension/annuity on retirement or latest pension payslip|
|Personal Independence Payment, formally Disability allowance (for self)||100%||A letter from the DWP to confirm current entitlement|
|2nd job salary||100% (only where a minimum 12 month track record can be evidenced)||As per above requirements for primary job|
|Non-guaranteed overtime||50% (last year average)||The last three payslips/P60 showing evidence of relevant split between salary, overtime, bonus and commission|
|Non-guaranteed bonus/commission||50% (last year average)||The last three payslips/P60 showing evidence of relevant split between salary, overtime, bonus, commission|
|Investment income||50%||Most recent Savings/Investment Account statement, must be dated within the last 12 months|
|Rental income||50% (mortgage free properties)||Last three months bank statements showing rental income credits|
|Maintenance||50%||A copy of maintenance agreement, CSA assessment or written private agreement evidenced by the latest three months bank statements|
|Working family tax credits||Not Accepted||N/A|
|Child benefit and child tax credits||Not Accepted||N/A|
|Other DWP benefits||Not Accepted||N/A|
|Rent a room||Not Accepted||N/A|
*Accountants certificate - if you want us to apply an accountant's certificate, rather than sending in accounts, then please email email@example.com with your request.
Guaranteed vs. non-guaranteed
For "guaranteed" additional income, we will use 100% in affordability calculations.
For "non-guaranteed" additional income, we will use 50% in affordability calculations.
Weekly/ monthly bonus/ commission/ overtime
Digital Mortgages will consider this as "guaranteed" (see income types table above) where it is shown on every playslip and will take the annualised average from the last three month's payslips. This must be supported by the YTD figure on the most recent payslip. We may also request the applicant's P60.
Where the payment is not shown on every payslip, this will be treated as "non-guaranteed" (see income types table above).
Quarterly bonus/ commission/ overtime
Digital Mortgages will consider this as “guaranteed” (see income types tables above) where it is shown on the current quarter’s payslip and the last two quarter end payslips (e.g. Current month’s payslip is September, June and March payslip must be provided in addition and should also show the additional income being paid), and will take the annualised average from those three payslips. This must be supported by the YTD figure on the most recent payslip. We may also request the applicant’s P60.
Where the payment is not shown on every quarter end payslip, this will be treated as "non-guaranteed" (see income types table above) and we will take the lower of the annualised average from the last three months payslips or the annualised YTD or P60 figure.
Annual bonus/ commission
Digital Mortgages will use the latest year's annual bonus/ commission payment in the affordability calculation where:
This will be treated as "non-guaranteed" (see income types table above) additional income.
We don't currently lend for interest only/ part and part mortgages
We're happy to accept joint mortgage applications with a maximum of two applicants for residential mortgages.
When we make underwriting decisions, our process is fair, impartial and responsible, but we also understand that in some cases, new information can become available that might change our decision.
We're happy to review our lending decisions where new, supporting information (that wasn't available at the time of decision) is provided. If this is the case and you'd like to appeal a lending decision, please contact our dedicated Intermediary Support team or your BDM.
Digital Mortgages define retirement age as the lower of the applicant’s stated retirement age or age 70 years.
Where the application term extends beyond an applicant’s retirement age, and where retirement is within 10 years of the application date then we’ll assess mortgage affordability based on the post retirement income.
When we are assessing lending into retirement cases where the applicants are more than 10 years from retirement, we require evidence that reasonable provision has been made and that there is evidence of client behaviour to support themselves into retirement. An example of this would be a track record of paying into a pension for a number of years at a level that would suggest an element of planning has taken place. We would also expect the broker to have fully discussed and assessed the clients lending into retirement plans and be able to provide suitable evidence to support such applications.
Where a customer has consent to let from their lender for their current property, and are seeking a mortgage from us for their new main residence then their application will be subject to normal policy LTV restrictions.The income and expenditure related to the background property will be assessed in line with our background BTL policy.
We’re not currently accepting applications for lifetime mortgages.
The maximum residential LTV percentage depends on the loan amount and type of borrowing.
|Loan (£)||Current Max. lending limit|
|£300,001 - £500,000||90%|
|£500,001 - £750,000||85%|
|£750,001 - £1,000,000||80%|
|£1,000,001 - £2,000,000||75%|
|Loan type / Property type||Max LTV|
|House purchase / Remortgage||95%|
|Flats and apartments purchase / Remortgage||95%|
|New build houses||85%|
|New build flats||80%|
|Right to buy||95%|
|Non-UK national applicants resident in the UK for less than three years||75%|
UK nationals with less than 3 years UK address history
Where they have been working overseas in a similar role to their current employment,
and they have at least 12 months UK address history, standard criteria will apply
|Second home / holiday homes||75%|
|Sheltered housing schemes / Retirement villages for elderly||75%|
For residential mortgages, the main applicant’s minimum income is £16,000. Where the main applicant earns less than £20,000 per annum but more than £16,000 we will restrict the loan to 80% of the maximum figure displayed in our affordability calculator.
We’ll only provide mortgage finance for new build properties if the property will be fully completed within 12 months of our first mortgage offer.
For residential mortgages, the maximum LTV levels are:
New build house 85%.
New build flat/apartment 80%.
All new build/converted properties that are less than 10 years old must have appropriate planning permission, as well as an acceptable 10 year structural buildings defects warranty backed by:
Building Life Plans
LABC New Home Warranty
Construction Register Limited
ICW (International Construction Warranties)
Zurich Municipal (no longer offered for new property sales)
A professional consultant's certificate from a suitable architect/surveyor (they need to be corporate members of the Royal Institute of British Architects or Royal Institution of Chartered Surveyors and have the appropriate professional indemnity insurance).
If the new build property doesn’t have a warranty then the application will be declined.
Builders’ cash incentives also need to be declared at the point of sale, and this can be done via the UK Finance Declaration of Incentives form. We will accept a maximum of 5% without affecting lending. Anything above this will be deducted from the lower of purchase price or valuation and the max LTV will be based on this figure.
We’re happy to accept non-EEA nationals who have been living in the UK for a minimum of one year, subject to full underwriting, for a maximum LTV of 75% as long as they meet the following criteria:
Where the Non-EEA national is the second applicant and has been living in the UK for at least 3 years, and the first applicant is a UK national, standard criteria and LTV limits will apply.
All mortgage offers are valid for 90 days from the date the offer was issued, with the exception of those relating to new build purchases which are valid for 180 days from date of offer.
In all cases, a mortgage offer will be placed in the customer’s Vault, accessible via the Atom bank app.
If the mortgage offer has expired and is still proceeding you must contact us within 15 calendar days following the offer expiry date, failure to do this will result in the application being cancelled without the possibility of reinstatement. If we have been made aware that the case is still to proceed it will be subject to re-underwriting and may require new case requirements and and/ or valuation before a new offer can be made. The original mortgage product selected may not be available.
Family members and individuals over the age of 17 who aren’t party to the mortgage, but intend to live in the property, need to sign our standard Deed of Consent form.
If the individual who plans to live in the property provides a lump sum towards the purchase, or is currently named/ previously named on the title they must be included on the application.
We do not offer mortgages to UK nationals who are resident and working overseas, including those intending to return to the UK in the near future. However, where an applicant is currently resident in the UK but works overseas (e.g. offshore oil workers) and is paid in UK sterling only, into a UK bank account which can be evidenced by a payslip, we can consider lending.
Further information relating to porting can be viewed in the mortgage terms and conditions in the customer's Vault area of their Atom bank app.
We might also accept some properties built using alternative techniques, so please speak to BDM or TBDM to confirm if the construction method is acceptable before applying.
In all cases a satisfactory valuation report needs to be received by Digital Mortgages.
We’re happy to lend against properties in England, Wales, Scotland and Northern Ireland.
However there may be some additional restrictions to property located on remote Scottish islands due to restricted demand. If this affects the application, please speak to your BDM or TBDM first to discuss the suitability of the property before applying.
We don’t currently lend on properties outside the UK including the Isle of Man and the Channel Islands.
We’ll consider lending on standard property and construction types. In addition we may consider the following types of property, subject to additional checks and a manual underwriting assessment:
Flats located five storeys or more above the ground (excluding ex-local authority)
Flats above commercial premises - in addition to normal criteria acceptability will depend on:
Nearby commercial activities. If any commercial activities in the block are likely to cause a nuisance - noise, smell or unsocial hours - we may not be prepared to lend on the flat
Access. Some flats over commercial premises have poor access, which may involve passing through the business area, exiting yards containing commercial refuse, or using poorly maintained external stairs. If any of these factors apply we might not be prepared to lend
Studio flats may be considered if they’re located in a prestigious development or location where their desirability and saleability can be confirmed by the valuer.
Freehold flats where
There are reciprocating lease/freehold arrangements (such as Tyneside Flat).
They are subject to the Tenements (Scotland) Act 2004
Flying freeholds where this makes up less than 15% of the property where the conveyancer can confirm that subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist.
Properties with over 10 acres (40,000m2) of land will be considered provided the following information is provided at application stage:
Full details of the living accommodation
Total area of land
Current and intended use of the land
Number, size, and proposed use of any outbuildings
Occupation of the applicant(s)
Details of any restrictions on the land or property
Please note: the property won’t be acceptable if it’s subject to any agricultural restrictions, or if the applicants intend to use the land for any agricultural or business purposes.
Properties with granny flats/annexes where the acting solicitor confirms that the granny flat or annex will have vacant possession upon completion
Right to Buy where the applicants currently live in the property and can supply their Right to Buy papers
Warden assisted dwellings
Residential properties including rooms used for rental purposes (e.g. Airbnb where only a portion of the property is let)
Section 106 planning restrictions can be considered depending on the exact nature of the restriction
Where the restriction imposes developer obligations, for example, inclusion of public amenities, this will be acceptable subject to our conveyancer confirming that the restrictions have been met or that acceptable covenants that they will be met are in place.
Where there is a restriction on remarketing of the property e.g. Affordable Housing Schemes or Local Ownership Schemes this will be acceptable provided there is a Mortgagee Exclusion Clause.
Where the restriction limits usage of the property e.g. agricultural ties this will not be acceptable.
Unacceptable property types
Unfortunately we’re unable to consider mortgage applications associated with the following types of property (please note that this isn’t an exhaustive list):
Commercial premises - either full or partial, including live/work units
High rise ex local authority flats (five storeys or more)
Freehold flats (excluding those noted above)
Flats with balcony access (will be considered on an individual basis)
Flats that aren’t self-contained or without independent access
Isolated rural properties with restricted access and limited services
Purchase of land
Entirely timber constructed properties. e.g. log cabins
Pre-cast reinforced concrete construction (unless improved to building regulation standards and confirmed so by a structural engineer)
Flying freeholds greater than 15%
Grade I listed buildings (may be considered on an individual basis subject to valuers comments)
Partially built properties
Properties with no kitchen or bathroom - unless being installed by applicants
Properties with a restricted occupancy clause, e.g. if they can only be occupied for a maximum of 11 months in any one year
Properties where material environmental hazards are revealed by environmental searches;
Properties where there’s ongoing structural movement
Properties where saleability may be adversely affected by an unsatisfactory mining search;
Properties excluded from full buildings insurance
Properties affected by planning restrictions or by local planning issues
Properties liable to be subject to clearance or compulsory purchase order
Properties subject to third party interest
Any property deemed unsuitable security by the valuer
Before applying it’s always worth double checking the suitability of the property with our Intermediary Support team.
The minimum and maximum purchase prices that we’re willing to lend against are:
|Minimum||Maximum (subject to max. LTV)|
* Please note where the property is located within the M25 and the property value is less than £100,000 then the application will be subject to additional scrutiny by an underwriter.
We don’t currently offer full interest-only lending.
Capital and Interest
Acceptable for all mortgages
Part and Part (capital and interest / interest-only) not currently available.
|Minimum Loan||Maximum Loan (subject to LTV maxima)|
|Purchase / Remortgage||£25,001||£2,000,000|
|First Time Buyer (FTB)||£25,001||£2,000,000|
We’ll only consider allowing second charges to remain, or to be registered on residential mortgages if:
We’re happy to consider mortgages for a second home or holiday home, providing:
The applicant demonstrates they can support both mortgages that are outstanding at the time of completion
They prove they can afford the cost of running two homes
The property is predominantly for the applicant’s own use, however short term occupation by family and friends will be acceptable
The property is not to be sublet
The maximum loan to value we’ll offer for this kind of purchase is 75%.
A first legal charge (or equivalent) will be required over all property in England and Wales and over all outright/ Scottish ownership property in Scotland.
If a customer has more than one mortgage with us, the standard Mortgage Conditions will include an ‘All Monies Clause’ which secures on the subject property any other debt that may be due to us, whether under this loan or any other lending facility.
If an applicant has more than a 20% shareholding in the business they work for, we’ll treat them as self-employed, but if their shareholding is 20% or under, we’ll class them as employed.
Applicants who own a franchise or have a partnership interest in a business will be assessed as self-employed, as will sub-contractors who derive income from more than one contract. In all cases, we might seek references from their accountants.
We’d normally expect applicants to have been self-employed for a minimum of two years and for the business to have been profitable throughout that time.
Income for affordability is taken as follows:
For self-employed customers, two years finalised net profit figures will be captured on the intermediary portal. The system will determine the average net profit for the applicant by taking a simple average
Where the latest year net profit figure is <85% of the average net profit, or is negative i.e. made a loss, then the case will be declined
Construction Industry Scheme (CIS) Contractors will be treated as self-employed. Therefore, two years’ accounts or two years’ HMRC self-assessments (SA302s or Online Tax Calculations) will have to be provided to evidence income.
Limited Liability Partnerships (LLP) - Income from a partner within an LLP is acceptable and can be evidenced by providing two years company accounts. Where the appointment is too recent to be shown in the accounts, income can be validated by a letter from the managing partner confirming the applicant’s partnership share and income for the most recent financial period.
We don't currently accept applications for shared equality.
We don't currently lend on shared ownership properties.
The maximum LTV available on these is 75%, and the full property lease and restrictive covenants must be approved by our solicitors and valuers.
Short term loans are sometimes associated with customers in financial difficulty or with very limited disposable income on a month to month basis.
Digital Mortgages recognise that this is not always the case and is willing to consider applications with no more than three short term loans within the last six months providing affordability is strong, the applicant(s) shows no signs of credit pressure and subject to satisfactory credit score.
We will consider properties with solar panels where the applicant(s) are funding the purchase of panels themselves or via additional borrowing, providing they are doing so without creating any long term lease arrangement with the panel provider. A condition will be attached to the offer of advance that lending is subject to the appropriate planning permission and consents being in place.
We will not lend on a property where the panel provider is supplying and fitting panels free of charge, is taking income from the grid tariff scheme and is creating a long term lease against the roof and roof air space.
In certain situations the valuer might request a specialist property report prior to the mortgage being offered.
When this happens, we will ask the customer to arrange for the appropriate report to be completed and we’ll forward to the original valuer for comment. The customer will be responsible for covering the cost of the report and for ensuring that the person completing the report holds the qualifications required by us. Please be aware that providing a specialist report does not guarantee that the property will be acceptable to us as security.
Where the valuer requests a structural engineer’s report the customer must ensure that the individual completing the report is a member of either the Institute of Structural Engineers (www.istructe.org.uk) or the Institute of Civil Engineers (www.ice.org.uk). They must also hold one of the following qualifications:
The minimum term we offer is two years or the length of the product selected, whichever is the greater.
The maximum term available is 40 years.
We're a whole bank packed into an app. So to get a mortgage with us, each applicant will need:
A mortgage code will be issued to each applicant by email / SMS. They will need this to access information about their mortgage in the app.
The app can be downloaded at any time during the application process. We recommend that this happens at the point of DIP, but it must be downloaded (and terms and conditions of the offer accepted) by all applicants before the conveyancer can request funds for completion. Failure to do so will result in Digital Mortgages being unable to complete the mortgage.
We can accept applications where a party is being added or removed from the existing mortgage. All such applications will be subject to normal lending criteria.
Existing customers may request a ToE on their mortgaged property to add a new party to, or remove an existing party from, the mortgage, after they have had their mortgage for six months. In this instance you'll need to add the relevant background details on the customer's file. Conveyancing fees will be payable by the customer in ToE cases and we will require evidence that affected parties have had independent legal advice. Please view our conveyancing fees leaflets.
A party being added to a mortgage will be treated as a new mortgage applicant and require full evaluation against our lending criteria and must have been a resident/ occupier in the property for at least six months prior to application.
A party being removed from the mortgage must have vacated the property prior to completion.
We won’t lend against the following types of property transaction:
Back to back transactions
Interest Only/Part and Part
Our panel of regional valuers is highly experienced and we're very confident that the valuation they provide will be an accurate reflection of its true market value.
This means we're unable to accept any appeals against the valuation of the property.
If your client has an unusual property or you have any other concerns then please contact our dedicated Intermediary Support team or your BDM.
If a physical valuation report is required, we work to the following mortgage valuation fee scale. (Please note that upgrade fees apply to non-fees assisted products only. For fees assisted products a fixed upgrade fee applies to the standard mortgage valuation report fee of £190 for a homebuyers report, or £670 for a building survey):
|Purchase price/ est. value up to||Mortgage valuation report||Homebuyers report||Building survey|
|Over £1,000,000||Available on request||Available on request||Available on request|
Every property used as security requires a valuation.
For some remortgage applications, where the application meets our criteria, we may use an automated valuation model (AVM) to determine the value of the property. However where it is not possible and a physical valuation is needed we'll ask a valuer from our approved closed panel to complete an internal and external inspection of the property.This basic valuation assesses the suitability of the property for mortgage purposes only. While it’s instructed by us and is purely for our use, copies will be sent to both the applicant and the conveyancer.
For customers who’d prefer a more detailed valuation report, we can instruct the valuer to complete one for the customer's behalf, to be paid by the customer (alongside any physical valuation that we might instruct). There are two types the valuer can offer:
Homebuyer Report: This is an internal and external inspection of the property. The report provides an account of the property’s condition and highlights any problems using a traffic lights rating system. It’ll include advice on defects that may affect the value of the property with comments on repairs and ongoing maintenance.
Building Survey: This is an in depth analysis of the property’s condition. It includes advice on defects, repairs and maintenance options, and should be considered essential for larger or older properties, or if the applicant is planning major works.
More information on the types of survey available can be found on the RICS website.
In Scotland, the valuation will usually have been completed before we receive the mortgage application. We will accept a transcript valuation for Scottish applications only, where the original inspection was completed within the last 3 months and where the valuer is on our current valuation panel. In all other cases we don't accept retypes or transcript valuations in any circumstances and a new mortgage valuation will be required. Please see our Price List for Home Report retype fees.
If the product you select when applying includes a free basic valuation, you can instead opt to use a transcript of an existing Scottish Home Report, however this will not be free and will incur our valuation retype fee (see Price List for details). If you ask us to carry out a free basic mortgage valuation on a property where a Home Report already exists, we’ll always take the most recent valuation figure, even if this is lower than the Home Report value.
Please be aware we are unable to accept: