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FOR INTERMEDIARY USE ONLY

Limited Company Lending Criteria A-Z

Our criteria is listed in alphabetical order to enable you to quickly find the information that you require.
If you do need further information then please contact our team on 0808 281 9309


Contracts (Short-term/Fixed-term)

Fixed-term contracts are acceptable where the applicant is currently on a 12 month contract and has at least 6 months remaining or evidence of a new/renewed 12 month contract must be provided, preferably in the same line of work.

Credit History

CCJ’s/Defaults with an aggregate total of £500 or less, registered over 3 years ago and satisfied for at least 6 months can be considered.

Bankruptcy - discharged more than 6 years ago and no adverse credit within last 3 years will be considered on full application.

IVAs/Trust Deed - Registered over 6 years ago, must have been completed over 3 years ago, no adverse credit within last 3 years and satisfactory explanation will be considered on full application.

Repossession/voluntary surrender of property - not acceptable.

One missed payment on no more than one communication supplier, credit card, mail order or utility bill for no more than one month, can be considered providing the account has been brought up to date and a satisfactory explanation is provided.

No more than one over limit position on credit cards or current accounts during the last 12 months, which should have now been rectified.

Debt Consolidation

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value). Allowed once in the lifetime of the mortgage

Deposit

Personal savings.

Non repayable gift from family member to director.

Sale/remortgage of existing property.

Non repayable gift from the company

EWS1

Where there are concerns about the external wall construction (cladding) for all flats then the valuer needs to obtain a EWS1 form which must be completed by a suitably qualified person, only options A1 and A2 are acceptable.

Employment

Applicants must be in permanent full or part time employment and continuously employed for the last 6 months.

Applicants must not be under notice of termination of employment or notice of redundancy.

Employment - short term and fixed term contracts

Fixed-term contracts are acceptable where the applicant is currently on a 12 month contract and has at least 6 months remaining or evidence of a new/renewed 12 month contract must be provided, preferably in the same line of work.

First Time Buyers

Our Ltd Company mortgages are currently only for directors who own their residential home.   We do welcome applications from First Time Landlords though.

First Time Landlords

First Time Landlords are accepted who own their own residential home.

Foster Parents

Only the placement income / fee element of the statement, which excludes maintenance payments, 
payments in respect of travel, clothing, Christmas etc., can be taken into account for mortgage purposes

Ground Rent

Ground Rent that exceeds £250 per annum outside London and £1000 per annum inside London is not acceptable.

Income

Income taken at 100%

Basic annual income.

Regular dividends.

Occupational pension, private and state pension.

SIPPS (Self-Invested Personal Pensions).

Car Allowance.

Large Town Allowance.

Housing allowances (police officers).

Placement Income received by Foster Carers.

Teachers Learning Responsibilities (TLR).

Guaranteed Overtime.

Guaranteed Bonuses.

Guaranteed Shift Allowances.

Income taken at 50%

Regular overtime, Shift Allowances, Bonuses.

Commission.

Rental income (unencumbered/mortgage free property).

Maintenance confirmed by Court Order or 6 months track record.

Secondary income (continuous 12 months).

Working Family Tax Credit.

Income from Trust Funds/Investments – Evidence will be required via an Accountant or last 2 years HMRC Tax Calculations & Tax Overviews.

Dividend income received, where the applicant is not a director of the company.

Income (minimum)

£20,000 minimum income is required (single or joint)

Income (retirement)

Must be in receipt of pension income to meet the minimum income requirement.

Limited Company

We will only lend to SPV Limited Companies based in the UK with one of the following SIC codes:

68100 - buying and selling of own real estate

68209 - management of real estate on a fee or contract basis

68320 - other letting and operating of own or leased real estate 

We will consider newly formed SPVs.

Trading Limited Companies, Partnerships or Limited Liability Partnerships will not be permitted.

Layered companies are not accepted.

Loan Type

Ltd Company BTL

Loan to Value

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value).

Location

England (Including Isle of Wight) & Wales.

Maximum Age

The term of the mortgage must not extend beyond the 90th birthday of the oldest Director.

Maximum Loan

Capital Raising - 75% max £500,000 (debt consolidations limited to 30% of property value).

Maximum Portfolio

Up to 3 properties.
Portfolio lending is not permitted on Ltd Company BTL's

Minimum Age

Directors minimum age 21

Minimum Income

£20,000 minimum income is required (single or joint)

Minimum Loan

£25,000

Minimum Property Value

£50,000

Minimum/Maximum Term

5 years - 40 years.

New Build Warranties

Any property which has been built / converted within the last 10 years must hold an acceptable guarantee / certificate

Acceptable guarantee/certificates include:

NHBC Certificate

Zurich Municipal Policy

Protek Home Warranty

Premier Guarantee

Checkmate - Castle 11

Architects Completion Certificate

Build Zone

Local Authority Building Control (LABC New Home Warranty)

Building Life Plans

ICW

One Guarantee Ltd

Number of applicants

Limited Company should not have more than 4 directors and they must own 100% between them.

Personal guarantees for the full loan amount will be required for all directors of the limited company; a floating charge will not be required.

Pay Day Loans

Directors who have taken out a pay day loan within the last three years are not acceptable.

Portfolio Buy to Lets

Not available on Ltd Company BTL's

Property (Minimum Value)

£50,000

Property - Acceptable Security

Residential properties permanently affixed to land, which are not mentioned in the unacceptable security section, are suitable security for mortgage lending subject to confirmation from the valuation report.

Property - Unacceptable Security

Non standard construction. This also includes Laing Easiform/Wimpey No Fines or similar construction types.

System built properties registered under the Housing Defects Act 1984.

Flying freeholds over 15%.

Properties with residential restrictions.

Properties without a kitchen, wc and bathroom.

Properties with agricultural restrictions, farms and small holdings.

Properties with more than 5 acres of land.

Live/Work Units.

Houses of Multiple Occupancy (HMO).

Properties adjacent to or above retail outlets including: Fast Food/Take Aways, Wine Bar/Bistro, Public Houses, Off Licence, Betting Shops, Dry Cleaners, Petrol Stations.

Freehold Flats or Maisonettes.

Ex-Local Authority/Housing Association Flats or Maisonettes.

Flats in blocks with shared walkway access.

Flats with cladding unless an EWS1 form is supplied which confirms that they are rated A1 or A2.

Leasehold properties with less than 75 years remaining on the lease at the end of the mortgage term.

Properties which have internal door locks.

Properties which are owned by the current owner or current vendor for less than 6 months.

Properties which are not ready for immediate occupation.

Properties which are affected by progressive structural movement, dry rot, Japanese Knot Weed or contaminated land.

Properties listed as defective under the 1984 & 1985 Housing Acts unless rebuilt to NHBC Standards and with appropriate guarantees.

Properties in which High Alumina Cement has been used in the construction.

Prefabricated buildings and unrepaired PRC constructions.

Properties with an anticipated life span of less than 25 years beyond the end of the mortgage.

Flats in blocks of more than 6 storeys, basements/underground parking count as 1 storey.

Steel framed structures built prior to 2000.

Studio flats where the LTV is greater than 75%.

BTL properties with an EPC rating of F or G.

Tyneside Flats.

Property Value

Minimum property value £50,000

Rental Calculation

The rental income must cover at least 125% of the mortgage interest, calculated at the rate of 7.50%. For like for like remortgages rental income must cover at least 125% of the monthly interest calculated at a rate of 6.50%.

Repayment Type

Repayment.

Interest Only

Part & Part

 

Residency

UK or EU Citizens with settled status.

Non UK or Non EU citizens must have been residing in the UK for the last 2 years and have non-conditional and permanent right to reside.

Expatriates are not acceptable.

Retirement Income

Must be in receipt of pension income to meet the minimum income requirement.

SIC Codes

We will only lend to SPV Limited Companies based in the UK with one of the following SIC codes:

68100 - buying and selling of own real estate

68209 - management of real estate on a fee or contract basis

68320 - other letting and operating of own or leased real estate 

Self Employment

Minimum trading period is 2 years.

An average income over the last two years will be assessed or the latest income will be applied if lower. Income is defined as:

Sole Traders and Partners - applicant’s share of the net profit.

Directors of limited companies (25% or greater shareholding) - applicant’s salary/remuneration and dividends.

Solar Panels

Solar panels will be considered subject to the Valuer’s recommendations. 
Where the panels are leased, a copy of the lease documentation will be required for submission with the application for approval by the Society.  The lease must contain agreement for removal of the panels, at no cost to the Society, should the 
Society take the property into possession.

Tenure

Freehold (houses only).
Leasehold properties must have at least 75 years remaining on the lease at the end of the mortgage term.

Top Slicing

Not available on Ltd Company BTL's

Unacceptable Lending

Holiday Lets

Sale and rent back.

HMO’s.

Properties being purchased from the applicant’s own business.

Properties that require items of major structural repair e.g. structural defects, electrics, drains. trees.

Remortgage applications where the applicant has not owned the property for six months.

Capital raising for business or investment purposes or to fund living costs.

Bridging finance.

Applicants who have taken out a pay day loan within the last three years.

Self-build.

Foreign Currency Loans.

Properties with EPC rating of F and G.

N/A

Regulated BTL's

Zero Hours Contracts

The Society will consider zero hour contracts as an acceptable employment type on the following 
basis:
• Restricted to stable, skilled/semi-skilled industries where employment opportunities are 
stable – refer to the Society for acceptable industries.
• Where the income is not the primary income i.e there must be another employed/self-employed/pension income, which is higher. This does not have to be a second job.
• The application is subject to maximum LTV of 80%.
• The applicant must have been employed in the same type of employment/industry for the last two years.