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Lending criteria

Use our A to Z lending criteria to find the information you require.

In calculating employed income, we will use:

  • 100% of basic income
  • 100% of any contractual allowance such as London Weighting or shift allowance
  • 50% of regular additional payments (overtime, bonus, commission allowances)
  • 50% of income from interest or UK listed company dividends
  • We do not use expenses/reimbursements in the income calculation
  • Income from employment/self-employment.
  • Income from trust funds
  • Pension income
  • Second and other jobs (see Additional Income section).
  • Investment or dividend income
  • Rental Income
  • Maintenance
  • Allowances confirmed by the DWP
  • Tax Credits
  • Stipend income
  • We do not accept income derived from foster care

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:

  • 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
  • 50% of income from trust funds providing they are evidenced via an accountant or latest years SA302’s and Tax year overview (most recent proof of income can be no more than 18 months old)
  • 50% of investment or dividend income providing this is evidenced via an accountant or latest years SA302’s and Tax year overview (most recent proof of income can be no more than 18 months old)
  • 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. A deduction will be made for outgoing buy to let mortgage payments, where applicable, and may require review by an underwriter. This could result in a change in the lending decision
  • 100% of Stipend income can be taken into consideration, stipend income is acceptable as a supplementary income. The applicant must have a minimum contract of 12 months with 6 months unexpired and stipend cannot be the only form of income on an application. Stipend can be evidenced via a letter (to the customer) from the stipend supplier which details the length of the stipend and the income being received and supported with a bank statement evidencing the most recent stipend income credit
  • 100% of Disability Living Allowance, Personal Independence Payment or Employment Support Allowance (ESA) confirmed as permanent by the Department for Work and Pensions(DWP)
  • 50% of Tax credits providing these are confirmed via HM Revenues and Custom (HMRC) documentation.

We will not consider any applicant who:

  • Is bankrupt, has bankruptcy proceedings pending, or who is registered on the Scottish Debt Arrangement Scheme
  • Has been discharged from bankruptcy within the last 6 years
  • Has an individual voluntary arrangement (IVA) or a Trust Deed (TD) or Administration Order, recorded during the last 6 years
  • Has an unsatisfied CCJ
  • Has a satisfied CCJs recorded during the last 6 years where the total value of the judgment is more than £100. The Scottish equivalent is a Decree (DEC) and the same rules apply
  • Has any Defaults(s) registered in the last 12 months or has any Defaults(s) during the last 6 years totalling more than £500
  • Has any type of repossession

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:

  • 100% of Disability Living Allowance, Personal Independence Payment or Employment Support Allowance (ESA) confirmed as permanent by the DWP

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:

  • Rental income as confirmed by a qualified surveyor for the subject security must cover the stressed mortgage payment at a minimum of 120% ICR (Interest coverage ratio)
  • Acceptable income is in line with Residential Lending, excluding other rental income

Personal income cannot be utilised in the following situations:

  • Applicants going past their disclosed retirement age, applicants already retired are acceptable subject to age criteria
  • Joint applicants who have separate residential properties

    The minimum household income for BTL is £25,000.

    • Minimum age of applicant is 21 at application. Maximum age is 75 at the expiry of the mortgage term.
    • Minimum time in current employment 6 months, minimum trading period for self-employment 2 years.
    • We will not lend to portfolio landlords. This is defined as four or more buy-to-let properties.
    • BTL is only available to applicants who are currently owner occupiers and have been so for 6 months. For joint applications, we will accept one applicant being an owner occupier providing our credit search shows the applicants are married/cohabiting and are both permanently residing at the owner occupier address.

    The LTV is then also subject to limits on loan purpose

    Purpose Maximum LTV
    Purchase 75% 
    Remortgage only (replacing the existing mortgage £ for £)  75%
    Home improvements 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.

    Loan size

    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.

    Loan purpose

    We allow BTL loans for:

    • Purchase of a BTL property where the borrower, or a close relation has solely a commercial interest in the property and will not be residing in the property at any point
    • Remortgage of a BTL property where the borrower, or a close relation has solely a commercial interest in the property, has not lived in the property in the last 2 years and will not be residing in the property at any point in the future
    • Remortgage of a residential property onto a buy to let, providing we receive evidence of a mortgage offer on the new residential property prior to the offer of the BTL loan and the customer already holds buy-to-let properties

    The Bank does not offer Consumer BTL mortgages, remortgage applications will be defined as Consumer BTL, where any of the following apply;

    • The applicant does not own any properties that are being let out on a rental basis (the property being remortgaged is sufficient to meet this rule if it is currently let out)
    • The purpose of the loan is not wholly or predominantly for business purposes
    • The applicant or their relatives have lived in the property in the last 2 years and will not be residing in the property at any point in the future

    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 property should be let on a single (AST) Assured Shorthold Tenancy agreement or a Private Residential Tenancy (PRT) in Scotland
    • The Bank will consider applications where property tenants will be in receipt of Housing Benefit
    • We do not lend on HMO’s. We define a HMO as a property let to 3 or more tenants who do not form one household, but share facilities such as a bathroom and kitchen
    • Applicants must ensure that buildings insurance arranged is suitable for a Buy to Let property
    • Multi let properties are not acceptable
    • We do not offer BTL loans on property in Northern Ireland
    • The maximum LTV on a new build house/bungalow/flat/maisonettes is 75%
    • The tenant must not be either a family member or a previous owner
    • The applicant must have no more than 25% exposure in any block of flats
    • The property must be suitable for immediate letting
    • The property must not be subject to any sale and rent back agreement, or any similar scenario
    • We will only accept flats situated above/adjacent to commercial property where the valuer can confirm the valuation is not adversely affected by the surrounding property
    • We do not lend on properties that have internal door locks and/or separate utility services.

    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:

    • Fully repaired PRC properties with brick external skin and suitable guarantees from a licenses scheme
    • Laing Easy form
    • Concrete No Fines
    • Cross wall construction
    • Timber frame with brick exterior
    • Standard roof construction (this includes thatch)
    • Standard flat roof construction

    We will lend on the following Modern Methods of Construction (MMC):

    • Insulated concrete formwork (ICF)
    • Modern Timber frame and Structurally insulated panel systems (SIPS)
    • New build LTV limits apply to Modern Methods of Construction

    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:

    • Leasehold
    • Have a floor area in excess of 30 square metres
    • In blocks no more than 10 floors or 15 in Central London (See box below)

    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:

    • Standard rate tax payer (20%) – 128% ICR
    • Higher/Additional rate tax payer (40% & 45%) – 145% ICR

    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:

    • LTV <=85%
    • Gross annual income: >= £75,000 combined
    • Minimum increased disposable income limits apply

    5x income multiplier:

    • LTV <=85%
    • Gross annual income : >= £45,000 combined
    • Minimum increased disposable income limits apply

    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

    • The latest 3 month’s computerised pay slips. Hand written documents will not be accepted.

    Or

    • An employers reference of employment contract dated within the last 12 months. Plus the applicants personal bank statement for the last month showing the latest salary credit and household expenditure.

    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).

    OR

    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

    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:

    Purpose Maximum LTV
    Purchase main residence 95%
    Remortgage only (replacing the existing mortgage £ for £) main residence 95%
    Remortgage and purchase additional legal interest (buy out partner) main residence 90%
    Home improvements main residence 85%
    Second residence for applicants and their 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 and remortgage only - replacing the existing mortgage £ for £ (not permitted for other remortgage purposes or further advances)

    Only available on capital and interest basis

    No flats or maisonettes

    £600,001 to £750,000

    90% subject to the criteria listed below:

    Property purchase, remortgage only and remortgage or further advance to purchase additional legal interest: for example: buying out partner (not permitted for other remortgage purposes or further advances)

    Only 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.

    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.

    Residential

    Minimum Age at application is 18 years.

    Buy to Let

    Minimum age at application is 21 years.

    Residential

    The minimum household income is £15,000.

    Buy to Let

    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.

    • The maximum LTV on new build houses/bungalows is 90% for Residential and 75% for Buy to Let.
    • The maximum LTV on new build flats/maisonettes is 85% for Residential and 75% for Buy to Let.
    • The property must have passed a final inspection by a new home warranty provider prior to completion of the loan.

    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:

    • applicant(s) is subject to UK or Guernsey tax laws
    • applicant(s) is not a Foreign Diplomat or Embassy Staff
    • applicant(s) has lived in the UK for a minimum of 3 years
    • applicant(s) has proof of indefinite leave to remain in the UK

    For clarity indefinite leave to remain can be evidenced by the following means:

    • Indefinite leave stamp in passport
    • An unexpired Biometric Residence Permit showing 'indefinite' rights to remain (this includes 'indefinite leave to remain', 'indefinite leave to enter' or 'no time limit‘, this is also classed as “settlement”)
    • Letter from the Home Office confirming indefinite right to remain in the UK
    • Immigration status share code so we can confirm the settled or pre-settled status.

    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.

    Visit Professional mortgage page

    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. A deduction will be made for outgoing buy to let mortgage payments, where applicable, and may require review by an underwriter. This could result in a change in the lending decision.

    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:

    • We do not lend to individuals who own more than 10 BTL properties on a Residential application
    • Where a loan is greater than £500,000 we will not accept applications where any part of the deposit is being raised against any existing property (including current residence, any Buy to Let, second home etc.)
    • All mortgages and property details must be disclosed
    • The existing mortgage(s) must have had no missed payments in the last 6 months and be up to date
    • Where the property is currently owner occupied and is now to be rented out (i.e. Let & Buy scenario), a rental certificate or written confirmation as to the anticipated rental figure must be obtained from an ARLA/NAEA registered independent third party, to confirm the rental income is sufficient to cover the 125% of the retained mortgage payment. Applicant’s income must also be sufficient to service 50% of the remaining mortgage as a commitment (added into the affordability calculation). The maximum LTV in this scenario is 75%. Surplus rental income over and above the relevant mortgage payment cannot be taken into account as additional income.

    OR

    • Applicant’s income must be sufficient to service the remaining mortgage as a commitment (added into the affordability calculation). If this amount is increasing as a result of a remortgage transaction i.e. to raise funds for the deposit, the higher monthly mortgage payment must be provided and used in this calculation
    • Standard LTV limits 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.

    • Second properties would be acceptable to maximum 75% LTV (Purchase/Remortgage)
    • For applicant(s) use only, for example, Holiday home, property used for work purposes
    • All commitments to be taken into consideration for affordability including residential mortgage
    • Application is subject to standard lending criteria

    Area’s which would not be acceptable:

    • Any type of letting short term / long term let is not acceptable
    • For other family members to utilise full time, for example, parents, children to live in as their residence

    We will accept accounts/accountant’s certificates from accountants qualified with one of the following bodies:

    • Institute of Chartered Accountants (England or Wales) FCA/ACA.
    • Institute of Chartered Accountants (Scotland) ICAS.
    • Institute of Chartered Accountants (Northern Ireland) ICAI (All chartered accountants may just sign as CA)
    • Chartered Association of Certified Accountants ACCA/FCCA.
    • Chartered Institute of Management Accountants CIMA/ACMA/FCMA.
    • Association of Authorised Public Accountants AAPA/FAPA.
    • Association of Accounting Technicians MAAT/AAT.
    • Association of Certified Professional Accountants ACPA/FCPA.

    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.