Lending criteria – residential

The Bank will allow up to 10 acres of land on 1 title but no ties allowed.

Refer to the Bank if the property is built on or located near a landfill site.

The Bank will consider loans above £500k in line with our product range and LTV limits.

For any mortgage applications greater than £1,000,000 note that Reliance Bank will be prepared to consider and look to provide bespoke product pricing with a maximum LTV of 60% – therefore refer to lender

The Bank requires the unexpired lease to be no less than 80 years at the time of the full mortgage application date and no less than 30 years at the end of mortgage term.

Please refer to the Bank.

We can lend to a maximum age of 75 but would only use retirement income from sources such as State Pension, Personal Pension and a Company/Occupational pension. For affordability purposes 60% of total income source is used.

The Bank takes into account debts with 12 months or less to run for affordability as we look at present commitments and future commitments.

If debts are to be cleared from proceeds of the remortgage application / OR to be cleared by savings or from other means then the Bank will ask that as a special condition of offer proof of repayment of the debt(s) is provided.

The Bank does not provide Lifetime Mortgages. Mortgages must be fully repaid by the age of 75 and can only exceed age 70 if our lending into retirement policy is met.

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

Maximum LTV for Standard Full ownership 90% (this is subject to product availability).

For Shared Ownership (with the exception of final staircasing) it is 95% of the value of the share.

Key Worker maximum LTV is 90%.

Applicants in an LLP are treated as Self Employed so we consider the average of the last 2 years income as declared on SA302 from the last 2 completed tax years used.

The Bank will consider a property where the work element to be utilised is less than 40% of the property.

Minimum loan amount confirmed below:

• FTB / HP / Remo / Unencumbered – £50k.
• Further advance – £10k new borrowing.

Please refer if looking to purchase through this Scheme.

The Bank does not provide residential mortgages to Limited Companies.

Where an applicant has changed status from Limited Company to Sole Trader please refer to the Bank.

We consider 75% of any payments received in the last 3 months annualised.

Verification of this income needs to be in the form of 3 months bank statements showing payments / court order or maintenance assessment or a letter from the Child Support Agency.

Applications are manually underwritten.

The Bank allows one party of a married couple to be on the mortgage, please note mortgage deed and title deed needs to match. The other party not named on the mortgage will need to sign an occupier waiver form. We support such cases on both purchases and remortgages.

For remortgages the Bank will allow changes in title deed from sole to joint but NOT joint to sole as this would increase the Bank’s risk position.

We are comfortable for the non named party to the mortgage providing any element of the deposit as this would be covered by our gifted deposit process where independent legal advice is sought as per our standard mortgage application process.

We are comfortable for the mortgage to be in just one name due to adverse credit for the other party, again deposit rules would need apply and an occupiers waiver would be required.

The Bank considers maternity leave income.

If the client is looking to return to their previous role on the same hours then we will consider 100% of their income.

We would require verification of this income to be in the form of their last payslip before they went on maternity leave together with a letter addressed to the Head of Mortgages confirming their intention to return to the same employment, working the same hours.

If the client is looking to go back to work on reduced hours then we would need clarified what their new income would be and an affordability assessment would be used based on this lower level of income.

Standard lending – up to £1,000,000.

Any loan amount greater than this will be reviewed on a case by case basis with bespoke pricing. LTV limit will be no higher than 60% LTV.

There is no minimum income requirement.

Acceptable minimum term is 3 years.

All mortgage applicants will be assessed on their right to reside in the UK and whether or not they currently live in the UK. Applicants who are UK citizens or applicants with Permanent Rights to Reside (PRR) in the UK and have a Biometric Residence Permit are acceptable under the Bank’s standard mortgage lending policy. The Bank will require a sharecode to independently verify this.

If the property will have mixed use or a partly Commercial element please refer to the Bank.

A mortgage cannot be considered where the mortgage is in joint names & the Title Deeds are in sole as both need to match.

Mortgage offers last for 6 months from date of issue with one 4 week extension added by HOM. Extensions subject to a case by case basis. Bank will be looking to support any customers who’s application has gone to formal offer and will work with all stakeholders to ensure that customer does not lose their property.

Mortgage Terms must be for whole years.

Not permitted.

The Bank does not lend to a Freehold property of multiple flats. Each unit would need to have a separate Leasehold title

The Bank can consider a property within a freehold block but please refer for consideration.

Properties constructed using this are not considered.

If declared as income in SA302 this will be used for affordability assessment.

New build is defined as a property that is being occupied for the first time.

Maximum LTV is 85% for full ownership.

NOTE that for shared ownership – we will allow a maximum LTV of 95% of the share and subject to product availability. If the new build is not yet complete at the time of full mortgage application we can arrange for a valuation to be undertaken on a ‘When done’ basis.

A Special condition will be added to any ESIS and Offer stating that solicitors cannot exchange contracts until a re-inspection has been undertaken on completion of the build. If the valuer states the property remains suitable security following the re-inspection we will then confirm to the solicitor they can proceed to exchange.

The re-inspection fee will also need to met by the applicant in addition to the original valuation fee.

New build is defined as a property that is being occupied for the first time.

Maximum LTV is 85% for full ownership.

NOTE that for shared ownership – we will allow a maximum LTV of 95% of the share and subject to product availability. If the new build is not yet complete at the time of full mortgage application we can arrange for a valuation to be undertaken on a ‘When done’ basis.

A Special condition will be added to any ESIS and Offer stating that solicitors cannot exchange contracts until a re-inspection has been undertaken on completion of the build. If the valuer states the property remains suitable security following the re-inspection we will then confirm to the solicitor they can proceed to exchange.

The re-inspection fee will also need to met by the applicant in addition to the original valuation fee.

Maximum LTV for both New Build houses and flats is 85% for full ownership and subject to product availability.

NOTE that for shared ownership – we will allow a maximum LTV of 95% of the share subject to product availability.

Please refer to the Bank.

Please refer to the Bank if not NHBC or Buildmark.

If the build is not yet complete at the time of the full mortgage application we can arrange for a valuation to be undertaken on a ‘When done’ basis.

A Special condition will be added to any ESIS and Offer stating that solicitors cannot exchange contracts until a re-inspection has been undertaken on completion of the build. If the valuer states the property remains suitable security following the re-inspection we will then confirm to the solicitor they can proceed to exchange.

The re-inspection fee will also need to met by the applicant in addition to the original valuation fee.

All mortgage applicants must be assessed in terms of rights to reside in the UK and whether or not they currently live in the UK. Applicants who are UK citizens or applicants with Permanent Rights to Reside (PRR) in the UK and have a Biometric Residence Permit are acceptable under the Bank’s standard mortgage lending policy. The Bank will require a sharecode to independently verify this.

We automatically decline on 2 or more missed/late payments in the last 6 months. Any arrears of 2 months or more in the last 6 years must be disclosed.

If the sale and completion is to be staggered and Non-Simultaneous please refer to the Bank.

Please refer to the Bank.

The Bank does not consider Non UK Taxpayers.

The Bank allows 4 names on all mortgage applications but we only allow the top 2 incomes to be used for affordability purposes.

The Bank have no limit and consider the valuer’s comments.

The Bank does not have a limitation with regards to the number of stories in a block of flats. We consider the valuers comments regarding saleability for the mortgage valuation. If the block has more than 4 stories and there is no lift in the block then we would not consider properties higher than the 3rd floor.

The Bank will consider a property with more than 1 kitchen, however strong rationale for this would be required and it would be based on the valuers comments on saleability and mortgage security.

The Bank does not currently consider BTL mortgages.