Use our A to Z lending criteria to find the information you require.
In calculating employed income, we will use:
Normal lending terms apply to properties up to three acres, providing the applicant does not intend to carry out a business from the property. The Bank will not lend where the property has agricultural restrictions or is a smallholding, farm or croft.
The following additional income may be used:
We will not consider any applicant who:
All applications are subject to affordability assessment. The model uses the combination of total gross annual income with tax and national insurance applied, credit commitments, other significant expenditure, council tax, basic expenditure, stressed mortgage payment and Help to Buy loan (where applicable) to calculate affordability. The result is then used to ascertain whether or not the loan is affordable.
We will not lend on any property with an agricultural restriction.
Property with annexes will be considered on residential loans as long as the immediate family of the borrower will occupy, and it is suitable for the type of security.
The maximum number of applicants is two who, for Residential mortgages should both be occupying the property on completion.
We will not lend where the property is subject to a back to back transaction. Our definition of back to back is a property purchased by the vendor within the last 6 months.
Bank statements will be requested to support all applications. Internet bank statements are acceptable (for non-ID purposes). Where statements are also required for ID purposes, these should comply with the Bank's standard ID requirements guidelines.
The following additional income may be used:
We will use 50% of regular bonus payments.
Incentives of up to 5% of the purchase price are acceptable.
All Incentives must be declared on the UK Finance Disclosure of Incentives Form completed by the Seller(s). This information will be considered by the Valuer when providing the property value for mortgage purposes.
The loan to value is calculated on the lower of the purchase price or property value.
Rental guarantees from builders are not acceptable.
A residential affordability assessment will be completed on a BTL application factoring in the applicants credit commitments and expenditure, in line with the guidance and/or rules set by the FCA, PRA and the Financial Policy Committee (FPC). The affordability assessment will mirror the assessment completed on a residential application to calculate the applicant’s disposable personal income.
Where BTL applications meet the approved criteria the applicants personal income may be utilised to cover a shortfall in rental income received from the subject security. The following criteria will apply:
Personal income cannot be utilised in the following situations:
The minimum household income for BTL is £25,000.
The LTV is then also subject to limits on loan purpose
|Remortgage only (replacing the existing mortgage £ for £)||75%|
|Remortgage* Capital raising debt consolidation||70%|
|Remortgage* raising (excluding business/speculative purposes)||70%|
|Capital raising for business or speculative purposes||Not available|
*We do not allow capital raising for any purpose within the first six months of the original purchase date.
The minimum loan is £25,001 the maximum is £750,000.
The maximum portfolio exposure is 3 Buy to Let properties totalling £1,500,000. If the applicant also has their main residential property with the bank, total exposure including residential loan must not exceed £2,500,000.
We allow BTL loans for:
The Bank does not offer Consumer BTL mortgages, remortgage applications will be defined as Consumer BTL, where any of the following apply;
|Loan size||Maximum LTV|
|Up to £350,000||75%|
|£350,001 to £750,000||65%|
The Bank will not lend to individuals who own/or will own more than 3 BTL properties including the application security, as applicants will be classed as a portfolio landlord.
In addition to the mainstream requirements, the additional property criteria apply:
The valuer will be asked in his instructions to provide a valuation for rental purposes giving a monthly rental figure based on an unfurnished basis for a single family occupation together with confirmation of the demand for letting and saleability.
100% Maintenance income can be taken into consideration, providing this is evidenced by the latest 3 months bank statements showing maintenance credits which must show payments have been received in each of the last three months or a court order or CSA/Child Maintenance Service(CMS) documentation.
We will accept 50% of Tax credits providing these are confirmed via HMRC documentation.
We will use 50% of regular of commission payments.
We will only lend on property that is built of standard construction as advised by the valuer. We will lend on:
We will lend on the following Modern Methods of Construction (MMC):
We do not accept applicants with unsatisfied CCJs.
One missed mortgage payment or two missed unsecured payments in the last 6 months can be considered provided the application still passes credit score and a satisfactory assessment is completed by the underwriter.
Missed payments above this level and worst current status >1 will be declined, excluding communications commitments
Any payment less than the contractual monthly amount will be classed as a missed payment.
If the borrower makes us aware of any criminal conviction (other than a driving offence) or there is a pending prosecution, the application will be declined. If the conviction is spent, it does not need to be declared.
We will allow capital raising for debt consolidation up to a maximum of 85% LTV for residential mortgages and a maximum 70% LTV for BTL.
Gifted deposits are acceptable providing that the deposit is being funded by a non-repayable gift from a family member – spouse, partner, parent, sibling, child, grandparent, aunt/uncle, nephew/niece, or where there is an obvious family connection which can be proved. The donor will be required to sign an appropriate declaration and may be required to evidence available funds.
Proof of deposit may be required prior to approving an application where the deposit is not wholly funded by the equity from the sale of the applicant’s current property. This should be in the form of bank statements, building society passbook held in the applicant’s name showing a build-up of funds or proof of investment. The source of any lump sum will need to be established.
For all house purchase applications, including first time buyer applications, the source of the deposit must be captured. The deposit should be provided from the applicants own funds. For clarity, funds withdrawn from a business are not considered acceptable. Loans, credit cards and other forms of unsecured credit are not acceptable as the source of the deposit. The only exception to this is for members of the Armed Forces, where deposit funded via the Forces Help to Buy Scheme will be acceptable.
We will only accept one Direct Debit per mortgage account. The DDM must be on the applicant’s personal account only. DDMs from business accounts/third party accounts will not be accepted.
For directors of limited companies, the applicants salary and dividends will be considered. The profit for the business should show an increasing trend over the 2 year period.
A purchase from a family member can be considered providing that the vendor will not be remaining in the property after completion.
Only one applicant has to be a first time buyer to qualify for a first time buyer product. BTL loans are not available to FTB’s.
Fixed term contracts are acceptable where the applicant has a minimum contract of 12 months with 6 months unexpired.
We will lend on flats providing they are:
Prime London Postcode Area
N1 N1C NW1 E1W E14 EC
SW1 SW3 SW5 SW6 SW7 SW10
W1 W2 W8 W9 WC SE1
For Leasehold flats - The Co-operative Bank for Intermediaries will only accept leasehold flats where the Buildings Insurance is arranged by the Freeholder or Management Company under the terms of the Lease for the whole block or suitable arrangement is in place to protect the whole building.
Forces Help to Buy Scheme will be acceptable.
We do not accept foreign currency on new mortgage originations.
We do not accept income derived from foster care.
We will use 100% of any contractual allowance such as London Weighting or shift allowance.
We do not accept guarantors.
The Scheme is available to home movers in Wales only.
The applicants cannot own or have an interest in any other property (i.e. a BTL in the background).
The new property is for owner occupation only (applicants cannot sublet the property).
The property being purchased must be New Build and covered by the Banks approved New Build warranty providers and the Builder/Developer must be participating in the Help to Buy Scheme.
A Minimum applicant deposit of 5% of the purchase price is required (excluding builder incentives) The maximum loan the Bank can consider for new purchases on the Help to Buy scheme is 75%LTV.
The Bank to have first charge on the whole property.
Minimum lease term for houses is 250 years and for flats 125 years Maximum Standard Mortgage term on capital and interest basis only.
The affordability assessment will take into account the interest only payments to the equity loan (only payable after year 5) at a flat interest rate of 3%.
Maximum LTI multiplier of 4.49. The equity loan can be repaid at any time. The minimum payment allowed is 10% of the properties market value at the time.
A Further Advance can only be considered to purchase an increased share in the property (known as staircasing). This would be subject to Home and Communities Agency (HCA) approval ( including agreement to a deed of postponement), a satisfactory Bank valuation and compliance with Secured Lending Criteria including standard LTV limit.
The minimum Further Advance is 10% of the properties market value at application, or £5,000 if lower.
Where a customer applies for a further advance or a Transfer of Equity (TOE) the affordability assessment will be include the remaining Equity loan at a flat date of 3%.
All Help to Buy Lending is subject to Secured Lending Criteria.
For a list of ID requirements, please refer to the PDF document on the Literature page.
The following Interest Coverage Ratios (ICR) will apply to the applicant with the highest gross income:
The only exception is for a Higher/Additional rate tax payer requesting a BTL remortgage replacing the existing mortgage £ for £ where the minimum ICR is 128%.
The maximum income multiple permitted on total gross verified income is as follows;
For applications with a LTV less than or equal to 85% (incorporating any fees added) a maximum multiplier of 5.5 can be considered.
To qualify for enhanced multipliers the following requirements are to be met: 5.5x income multiplier:
5x income multiplier:
Applications that do not meet the above criteria applications would be considered for the maximum 4.49 multiplier.
All applications are subject to affordability assessment.
Enhanced multipliers are available for professional mortgage product up to 6x
We must have
If the applicant works for the family business or for a business owned by their co-habitee we may request the qualified accountant’s confirmation of the annual gross income.
Minimum trading period is 2 years.
The following proof of income can be accepted:
Last 2 years tax assessments (SA302 (hard copy or self-service version) AND Tax Year Overview).
Certificate from a suitably qualified accountant with 2 years figures.
PLUS the customers personal bank statement for the latest full month showing the latest salary/income credit and household expenditure.
The Underwriter may, in addition, request business bank statement and/or accounts to support the assessment of the application by exception.
The proof of income figures provided must include the last financial year-end and this must be no more than 18 months old.
Where profits/income is declining, the application may be declined.
Where a self-employed applicant is relocating we require written confirmation from the acting accountant that the relocation will have no effect on the future profitability of the existing business. If this cannot be supplied the application will be declined.
Residential Interest-only offering is available to new customers to the Bank.
Maximum LTV: 85% where any part of the loan is interest only
Interest only maximum LTV is 75%LTV, this can be increase to 85% LTV with the extra borrowing over 75% LTV on a repayment basis
Minimum income requirements for residential interest only: Single - £60,000 / Joint - £80,000
The interest only LTV limits are subject to maximum loan sizes
Interest only offering is available where the applicant(s) can demonstrate a credible repayment strategy, in line with Banks Credible Payment Strategies for new residential interest only
For all residential interest-only mortgages a declaration must be completed to support evidence of the repayment strategy.
For all residential interest-only mortgages the affordability assessment will be completed on a capital and repayment basis
BTL loans are available on interest only and evidence of repayment vehicle is not a requirement
Existing mainstream residential customers with an interest only mortgage product can transfer this interest only amount to a new purchase providing they can demonstrate a credible repayment strategy and the loan does not exceed £500,000 or 75% LTV.
Visit Interest Only page for further supporting guidance
Applicants that have had an individual voluntary arrangement (IVA) or a Trust Deed (TD) the Scottish equivalent recorded during the last 6 years will not be accepted.
The Bank may consider lending on a property where there is Japanese Knotweed subject to the RICS reporting categories, valuation and suitable category. Category A is not acceptable, Category B,C & D will be considered following a valuation inspection, which may potentially require: Specialist report, management plan, insurance back guarantee and any future funding must be ring-fenced to support completion of the treatment plan.
We will not lend to portfolio landlords. This is based on the PRA definition (SS13/16) of portfolio landlords which is four or more buy-to-let properties.
Leasehold properties must have a minimum unexpired lease of 85 years at the time of application.
We will consider a remortgage of an applicants current owner occupier property on to a Buy to Let mortgage, providing they are not a first time landlord. We do not offer Consumer BTL’s
If the Bank is providing the new residential mortgage for the applicant, and they are obtaining the BTL/LTB from another lender we will require the mortgage offer as proof.
Applications will be considered for the purchase or remortgage of an applicant’s main residence and will be secured by way of a first charge. Remortgages can be considered, the reason for the additional borrowing should be detailed on the application form.
The minimum term is 5 years and the maximum term is 40 years. This will also be dependent on the applicant’s ages. We will lend where the term goes beyond the applicant’s retirement age if the projected or actual pension income is sufficient to support the loan.
For mainstream purchase, remortgage and further advance cases, the LTV will also be subject to the following limits:
|Purchase main residence||95%|
|Remortgage only (replacing the existing mortgage £ for £) main residence||90%|
|Remortgage and purchase additional legal interest (buy out partner) main residence||90%|
|Home improvements main residence||85%|
|Purchase second residence for family use only||75%|
|Capital raising debt consolidation||85%|
|Capital raising (other)||85%|
|Capital raising for business or speculative purposes||Not available|
See Help to Buy Section for LTV limits at origination.
LTV by Loan Size
|Loan size||Maximum LTV|
|Up to £600,000||
95% subject to the criteria listed below:
Property Purchase Only, not permitted for Remortgage or Further Advance
Only available on capital and interest basis
No flats or maisonettes
|£600,001 to £750,000||
90% subject to the criteria listed below:
House purchase or remortgage only, not permitted for further advanceOnly available on capital and interest basis
|£750,001 to £1,000,000||85%|
|£1,000,001 to £1,500,000||80%|
|£1,500,001 to £2,000,000||75%|
The Loan to Value ratio is calculated on the lower of the purchase price or property valuation.
All sale incentives must be deducted from the purchase price used to calculate Loan to Value.
We will allow applications in sole names for married, common law or civil partners. All persons detailed on the Title Deeds must be party to the mortgage.
If a customer is on or due to go on parental leave, income can be used from the most recent payslip, prior to leave, providing they intend to remain in current employment. If they have advised they will return on a part time basis, the lower income figure should be used.
Maximum Age is 75 at the end of the mortgage term.
Minimum Age at application is 18 years.
Minimum age at application is 21 years.
The minimum household income is £15,000.
The minimum household income is £25,000.
For employed applicant(s) there is no minimum time in employment.
The Co-operative Bank for Intermediaries definition of a new build property is one that has been built or converted within the last 24 months or one that has been built longer than this but has never been occupied since construction/conversion.
All borrowers must have right to live and work in the UK.
The mortgage applicant(s) must usually be resident in the UK at the time of application and at least one of the applicants must be permanently residing or planning to reside in the property when the mortgage completes. We do not offer mortgages for ex patriots.
If the applicant(s) are not subject to UK tax, then they are not acceptable.
Where the applicant is not a UK national or Republic of Ireland citizen then the application may be acceptable where all of the following apply:
For clarity indefinite leave to remain can be evidenced by the following means:
The maximum number of applicants is two who, for Residential mortgages, should both be occupying the property on completion.
We will consider properties with outbuildings subject to valuations and providing there is no commercial usage.
We will use as allowable income 50% of regular overtime payments.
The Bank's professional mortgage product will provide support to newly qualified professional applicant(s) which meet the Bank's approved list and criteria requirements.
Key feature of the professional mortgage product will allow enhanced income multipliers up to a maximum of 6 x income, subject to the Bank's affordability assessment.
For residential mortgage applications only, rental income can be used as allowable income for affordability purposes.
100% of net profit from property rental with a minimum of 2 years figure where this can be evidenced by an accountant’s certificate or latest SA302 and tax year overview, the most recent years figure will be utilised.
Applications where the applicant wishes to retain an existing property (mortgaged or not), such as a former marital home, an existing BTL or owns a 2nd home will be considered.
The following conditions will normally apply:
All existing investment mortgages will be treated as self-funding.
Maximum Age at expiry of mortgage term is 75. For customers retiring during the mortgage term, the application will be referred an underwriter to assess affordability on projected or actual retirement income.
If the applicant does not intend to retire before the term end the application will be assessed on the ability of the applicant to be able to continue the role until their chosen retirement age.
The term must finish 4 months before their chosen retirement age at the point of application.
We do not lend on either Right to Buy (RTB), Right to Acquire Schemes or property that is still in the pre-emption period.
Area’s which would not be acceptable:
We will accept accounts/accountant’s certificates from accountants qualified with one of the following bodies:
We do not lend on property that is subject to Shared Ownership.
We will use the applicant’s solicitors providing they are on our panel. If the applicants wish to use a solicitor who is not on our panel, we will require one of our panel solicitors to act for us at the applicant’s expense.
A Further Advance can only be considered to purchase an increased share in the property (known as staircasing). This would be subject to HCA approval (including agreement to a deed of postponement), a satisfactory Bank valuation and compliance with Secured Lending Criteria including standard LTV limits.
The minimum Further Advance is 10% of the properties market value at application, or £5,000 if lower
We will use 50% of Tax credits providing these are confirmed via HMRC documentation.
The Co-operative Bank for Intermediaries will consider only if built after 1970 and subject to valuation where built of a timber frame with brick exterior.
Modern timber framed construction is acceptable providing the outer skin is predominantly masonry. Historic or period timber framed construction is acceptable depending on local marketability and any necessary specialist reports.
Timber frames which appear to have received retrospective cavity fill insulation are not acceptable.
Timber framed properties with external timber cladding are also not acceptable.
A physical valuation is valid for 6 months from the date of inspection. A further valuation may be required if completion does not take place within 6 months of the date of the original valuation.
All buy to lets are subject to physical valuation. The valuer will be asked in their instructions to provide a valuation for rental purposes giving a monthly rental figure based on an unfurnished basis for a single family occupation together with confirmation of the demand for letting and saleability.
All residential applications will be checked to see if they meet the Banks Automated Valuation (AVM) criteria.
A physical inspection/valuation will only be obtained if it fails the AVM criteria.
We will use 50% of Tax credits as acceptable income, providing these are confirmed via HMRC documentation.
We do not accept income from Zero Hour contract employment.