This site is optimised for modern web browsers, and does not fully support your version of Internet Explorer.
Please upgrade your browser if you are experiencing issues.

Only for registered intermediaries

Jump to menu White search icon Purple search icon

Affordability rules applied at DIP

We aim to keep the affordability calculator as simple as possible, to give you an accurate but quick answer. However, we do apply more rules when you make a DIP for your clients. You can review them below to further understand if your client is likely to get a mortgage with us. But remember, a successful DIP doesn’t guarantee that we will lend to your client.


Customer Age

We will not lend to applicants under 18 years of age. 
 
If the customer will be over 80 years of age at the end of term, please adjust the requested term. 

Employment

If the applicant is not in full time employment we may need to carry out further checks before we can confirm we will lend.

If future changes in income and/or expenditure are indicated in the application we may need to carry out further checks before we can confirm we will lend.

The minimum income for the main applicant is £16,000. Where income is between £16,000 and £20,000 we will decline any case where the loan exceeds 80% of the maximum affordable loan, as displayed in the affordability calculator. 

Primary Applicants must have at least 12 months employment history.

We will not lend to self-employed applicants with less than 2 years' experience.

Primary Applicants, where contracting, must have been in their current contract more than 6 months or their previous contract must have been longer than 12 months.

Secondary Applicants, where contracting, must have been in their current contract more than 3 months or their previous contract must have been longer than 12 months.

Contractors must have more than 12 months of contracting employment history.

Contractors must have more than 24 months of employment history.

Contractors must earn an annual income of at least £50,000 or a Day Rate of £250.

Contractors must have had no longer than a 2 month break between their latest contracts.

Loan Purpose

If the applicant is borrowing for home improvements costing more than 15% of the property value, we will not lend if the required loan exceeds 90% of the maximum affordable loan, as displayed in the affordability calculator. Additionally, the maximum LTV is capped at 85%.

If the value of unsecured credit to be redeemed on completion is more than £50k we will not lend if the required advance is less than £300k or the required LTV is more than 80%.

If the purpose of the loan is for debt consolidation, and the total amount of unsecured debt to consolidate is greater than £30k, we will not lend if: 

  • the required loan exceeds 80% of the maximum affordable loan, as displayed in the affordability calculator, or
  • the customer debt-to-income ratio before consolidation is more than 20%, or
  • debt con / required loan is more than 20%, or
  • debt con is more than £100k

We will not lend for debt consolidation as part of a Right to Buy application.
 
We will not lend for business purposes.

LTV

The maximum LTV for a new build house is 85%.
 
The maximum LTV for a new build flat is 80%.
 
If the applicant has lived outside the UK in the last 3 years the maximum LTV is 75%.
 
The maximum LTV for a second home is 75%.

Property

The maximum cash incentive we will accept is 5% of purchase price.
 
We will not lend on freehold flats and we will not lend on commonhold property, we may be able to consider the applicant with an alternative property.
 
An unexpired leasehold must have a term of more than 80 years remaining. 
 
An unexpired leasehold must have a term of more than 50 years remaining at the end of the mortgage.

Residential Status

If the applicant has been resident in the UK for less than 12 months we will not lend.

If the applicant is non EEA and has less than 3 years' leave to remain in the UK we will not lend.

We will only lend to non EEA applicants who are owner-occupiers.

We will only lend to applicants with a current UK address.

The maximum LTV for a non EEA applicant is 75%.  

We will not remortgage a property within 6 months of the current mortgage. The property must have been owned and occupied by the applicants for at least 6 months prior to a remortgage application.