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Lending criteria – residential

Service Level Agreements

• AIP Turnaround time: 3 working days from receipt of completed application form which has passed an initial Quality Assurance Check
• Full Mortgage Application to Formal Mortgage Offer turnaround time: 14 days from date of FMA (Full Mortgage Application)

Rates are Only Secured when your application reaches Full Mortgage Application (FMA) Stage – we will confirm in writing when a rate has been secured and all lending is subject to a satisfactory valuation of the proposed property.

Use our A to Z tool below for details of our residential lending criteria – click on the “A – C” or “D – K” etc to view the criteria headings.

Use our A to Z tool below for details of our residential lending criteria

A-C D-K L-N O-Q R-Z

The property has to be owned for minimum of 6 months before a re-mortgage application can be considered. The only exception to this is where the property is inherited.

Will need to have been cleared for 6 years as anything less than this we will look to decline.

If historic will not be disclosed as we only review last 6 years credit conduct history.

Will need to have been cleared for 6 years as anything less than this we will look to decline.

If historic will not be disclosed as we only review last 6 years credit conduct history.

Cases will be declined in the following circumstances for defaults:

  • 1 Satisfied or unsatisfied default greater than £100 registered in the last 12 months.
  • 1 Satisfied or unsatisfied default greater than £500 registered in the last 3 years.
  • Two or more defaults registered in the last 3 years.

Exceptions can be considered by the Head of Mortgages/Senior Underwriter on a case by case basis.

Refer to Ex Council/Local authority criteria.

The Bank will not consider applications where the purchase/remortgage of a property is for a dependent relative to live in separately from the borrower.

Dependents living in same property as the borrower will be required to sign the Bank’s own Occupier Waiver after they have received independent legal advice from a Solicitor/Licensed Conveyancer/Notary Public.

Gifted deposit from family and friends is acceptable.
Concessionary purchase from friends & family is not acceptable.
The Bank does not allow the previous owner to remain in the property.

Please note all gifted deposits will require the Bank’s own waiver form to be completed/source of funds to be provided in terms of evidence and all donors will be required to seek and obtain independent legal advice which the solicitor/notary will need to sign and stamp to confirm that they have been provided with such advice.

Deposits from a Trust would need evidenced approval from the trustees and also would require independent legal advice as per the Bank’s standard procedures for any gifted deposit.

Deposit needs to be in a UK bank account.

Deposits from a Trust would need evidenced approval from the trustees and also would require independent legal advice as per the Bank’s standard procedures for any gifted deposit.

Gifted deposit from family and friends is acceptable.

Concessionary purchase from friends & family is not acceptable.
The Bank would not allow a previous owner to remain in the property on completion.

Please note all gifted deposits will require the Bank’s waiver form to be completed/source of funds to be provided in terms of evidence and all donors will be required to seek and obtain independent legal advice which the solicitor/notary will need to sign and stamp to confirm that they have been provided with such advice.

Deposit from either a limited company, in the form of a loan or originating from a foreign source, are not acceptable.

Please refer to the Bank.

The Bank will not consider applications where a party has diplomatic immunity.

The lender would be prepared to use 100% of the Directors Divindends.

If the Director owns more than 25% of the business then the Bank will assess the customer as self-employed.

If less than 25% ownership then the Bank will use payslips / employers reference to confirm income.

The Bank is not prepared to use a Directors loan for affordability purposes.

To be considered the applicant needs to be discharged from bankrupty for a period of 72 months (does not appear on their credit report).

If the property is subject to a Section 106 restrictive covenant and this is a private sale then as long as the vendor and the applicant have agreed a purchase price and the Bank can sight the memorandum of sale then they will be happy to proceed with up to 75% LTV. (95% if Shared Ownership or Key Worker).

Where there is an element of a distressed sale refer to the Bank. We would require details of the sale/the security in question before looking to provide a formal agreement to proceed.

The Bank allows ground rent which changes. This would be down to valuers comments on saleability and also suitable mortgage security as part of the valuation. Please refer the property to the Bank where we can ask our valuers for feedback prior to any formal application. This also applies for Escalating Ground Rent

Customers need to be employed in their current job for a minimum period of 3 months (any probation period included) prior to date of full mortgage application.

As part of the application form we do ask for their last 3 years employment history.

Required where applicant has recently received a pay rise otherwise considered by our Underwriter on a case by case basis.

The Bank does not currently offer Equity Release mortgages.

The Bank can accept Applications & Direct Debit mandates with an Electronic facsimilie of the applicant’s signature.

The Bank allow ex local authority houses and flats, subject to valuers comments, and would ask brokers to provide the property details so we can review prior to making a formal application. Deck/balcony access needs assessing and cases may be declined, please refer to the Bank. The majority of the block would need to be privately owned. There is no limit to the number of stories in the block, however the Bank would need to know the full address to check for any saleability issues with the proposed security. There are a number of locations which are ex local but are valuable/desirable to own.

The Bank does not lend to Ex-Pats.

Please refer to the Bank.

Expenses cannot be used in an affordability assessment.

The Bank’s exposure limit to a single development is 30%. An example of this is below:

A development that goes on general sale has 30 units (mixture of homes / apartments) therefore within that development, Reliance Bank would not be prepared to provide personal mortgages secured against more than 10 units / properties. This ensures that if anything was to happen to the development the Bank would not be over exposed.

Where applicant is employed by the Family Business they will be considered on the following basis:

  • If the customer owns more than 25% of the family business we would request their company accountant complete an accountant’s reference.
  • If they own less than 25% then we ask for 2 months payslips and 3 months bank statements to confirm salary credits.
  • For over 25% ownership, if they do not have an accountant then we will ask for 2 years full company accounts.

The Bank are happy to have the product fee added to the loan amount. Valuation fee has to be paid at time of full mortgage application.

Note: Product fees that are being added to the loan amount CANNOT EXCEED the LTV bracket for that product.

First Time Buyers can borrow up to the standard maximum LTV of 95%.

The Bank classifies a FTB as someone who has never owned a property in the UK or worldwide before.

Please refer to the Bank.

No limit as relies on valuers comments regarding saleability and also mortgage security.

Please refer to the Bank.

These are not acceptable to the Bank

Please contact the Bank to discuss.

The Bank only accepts cases where the applicant is paid in £Sterling.

Please refer to the Bank.

Can be used for affordability if declared on SA302 & Tax calculations.

Where one applicant is a First Time Buyer and the other is a Home Mover we will treat the applicantion as a First Time Buyer.

Whilst the Bank do not offer Free Legals there may be a Free valuation or Cash Back offer on certain products from time to time.

Cash back is to be paid within 60 days of date of completion.

The Bank does not accept applications where 1 or more of the applicants are on furlough. We will consider on day 1 of the applicant returning to work subject to confirmation from their employer addressed to the Head of Mortgages.

Please refer to the Bank where there is a history of gambling or the applicant is seeking a capital raise to repay gambling debts.

If the property is subject to the Government Green Deal Scheme then please refer to the Bank.

The Bank does not offer Guarantor Mortgages.

The property needs to be habitable with Kitchen & bathroom fitted with running water/heating connected before contracts can be exchanged. A re-inspection may be required which will be a Special Condition in any Offer/ESIS issued.

Soft Footprint at AIP
Hard Footprint at FMA

Where heavy re-furbishment is required to be carried out on the property please contact the Bank to discuss.

The Bank does not lend on HTB mortgages.

The Bank does not apply a Higher Lending Charge.

Houses of Multiple Occupation are not acceptable.

The Bank can consider requests for a Holiday Home as a second home with running costs for both included in the affordability assessment. The Bank has a limit of a maximum of 4 properties (including main residence) or if the combined properties value exceeds £2m, whichever transpires first.

The Bank does not accept applications for Holiday Lets.

We require 2 forms of ID&V verification for all mortgage applications – these are;

  • 1 item for proof of name
  • 1 item for proof of address in all applications

ID must be in Colour and if using a Driving Licence then copies of the front and back of the license must be provided Bank Statements are not accepted for Proof of address as these are used for income confirmation.

List of permitted documents available from Reliance Bank and a copy is supplied when an AIP is issued to the Broker to assist with packaging requirements.

Certification of documents required only if bank unable to verify electronically.

The Bank uses 60% of total Nusing Bank Staff income for affordability.

The Bank does not accept for affordability purposes.

The Bank uses 60% of the total Industrial Injuries Disability Benefit figure for affordability purposes.

The Bank will not use investment income for affordability purposes.

100% Large Town allowance is used for affordability.

The Bank do not use lodger income as part of the affordability assessment.

The Bank uses 60% of a Mortgage Subsidy for affordability purposes.

The Bank can look to use overtime income in the affordability assessment. We would look to use 60% of the overtime figure based on the last 3 months average annualised.

Refer to Lending Into Retirement.

The Bank will use 60% of the shift allowance for affordability purposes. We would use last 3 months payslips to confirm the considered amount.

The Bank will not use trust income for affordability.

The Bank use 60% of the Guardian allowance for affordability purposes.

Employed- Latest payslip or last 3 months if using overtime/commission for affordability.

Self-Employed- SA302’s SA302’s + completed tax calculation sheets from the last 2 completed tax years at as at time of application.

Will need to be cleared for 6 years, anything less than this we will look to decline.

If historic will not be disclosed as we only review last 6 years credit conduct history.

Maximum LTV 75%.

2 Permitted repayment vehicles

  • Endowment policy
  • Sale of second home/BTL Equity for the second home – minimum amount is £50k and Reliance Bank only take into account 80% of the equity of the property.

Refer to Bank if existing customer approaches broker.

Broker will need to check with their own Compliance that they can submit as the Bank are comfortable the broker can give himself advice.

The Bank can consider the application if the sale is going to be used as the customers main residence or second home and the Bank have sight of the memorandum of sale. Confirmation is also required that there will not be any ongoing issues.

Please refer Contractors to the Bank.

The Bank can look to see if they can assist if a specialist report outlining the issues on the valuation report and a quote from a treatment company who also offer a warranty-backed treatment regime is provided. This is subject to valuers comments and if the valuer declines the property then the Bank will decline the application and inform the broker that the customer will need to seek an alternative property.

The Bank can consider these applications. No need to be a family member.

Note that the MORTGAGE DEED & TITLE DEED need to match.

Refer to Bank for qualifying occupations.

We are proud to be the bank of The Salvation Army International. Find out more about our shared history.

Reliance Bank Limited,
Faith House,
23 - 24 Lovat Lane,
London,
EC3R 8EB

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