Criteria A-Z

As we manually underwrite our mortgages we’re much more flexible with our criteria than most. Using our common sense approach (and our ears!) means we can cater for a larger variety of life stages and circumstances for your clients than many other lender. 

Browse criteria by A-Z below or search criteria by keyword to find what you need.

Take a look at what we have to offer
Owner Occupier Criteria
Address History (Min UK address history needed)

Our standard acceptability

36

Criteria definition:

This is the required number of months we specify an applicant has to have had a UK address history for.

Our policy notes:

We require a three year UK address history.

Our outside policy allowances:

We can consider applications from UK expatriates abroad without a three year UK address history. Please refer to the acceptable list of countries expatriates can be resident in which is located on our website.

Last updated:

15 August 2018

Affordability Assessment: Additional Voluntary Pension Contributions

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore additional voluntary pension contributions when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Additional Voluntary Pension Contributions' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Charitable Donations

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore charitable donations when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Charitable Donations' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Child Care Vouchers

Our standard acceptability

Not Ignored

Criteria definition:

Indicates if we can potentially ignore childcare vouchers when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society automatically allow for the cost of child care when assessing borrowers affordability. However, we will need to factor in the cost of nursery fees or school fees and these need to be declared at application.

Our outside policy allowances:

Last updated:

07 November 2018

Affordability Assessment: Company Pension

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore company pension contributions when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Company Pension Contributions' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Maintenance Payments

Our standard acceptability

Not Ignored

Criteria definition:

Indicates if we can potentially ignore maintenance payments when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will include 'Maintenance Payments' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Private Healthcare

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore private health care premiums when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Private Healthcare Payments' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: School Fees

Our standard acceptability

Not Ignored

Criteria definition:

Indicates if we can potentially ignore school fees when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will include 'School Fees' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Season Ticket Loans

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore season ticket loans when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Season Ticket Loans' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Sharesave Schemes

Our standard acceptability

Can Be Ignored

Criteria definition:

Indicates if we can potentially ignore share save schemes when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will ignore 'Sharesave Schemes' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Affordability Assessment: Student Loans

Our standard acceptability

Not Ignored

Criteria definition:

Indicates if we can potentially ignore student loans when assessing applicants expenditure for affordability purposes.

Our policy notes:

Family Building Society will include 'Student Loans' when assessing borrowers affordability.

Our outside policy allowances:

Last updated:

29 August 2018

Age Limits: Maximum Age at End of Mortgage Term

Our standard acceptability

95

Criteria definition:

Indicates the absolute maximum age we might lend to. In summary 'Age Limits: Maximum Age at End of Mortgage Term' indicates the age we can potentially lend up until if you meet all required criteria.

Our policy notes:

The maximum age based on an 89 year old applying for an interest only mortgage is 94. The actual term for other ages depends on the age at application and the term we have from our term calulator available on our website.

The maximum age for a capital and interest repayment mortgage is 95 years.

Our outside policy allowances:

Last updated:

15 August 2018

Age Limits: Maximum Age at End of Term for a Non Contributory Applicant

Our standard acceptability

89

Criteria definition:

Specifies the maximum age we can potentially accept for a non-contributing applicant. A non-contributing applicant is an applicant whose income is not factored into the affordability of the mortgage. 

Our policy notes:

Our normal mortgage term maximums apply whether an applicant contributes to the mortgage or not.

Our outside policy allowances:

Last updated:

29 August 2018

Age Limits: Maximum Age AT POINT OF APPLICATION

Our standard acceptability

89

Criteria definition:

Indicates the maximum age (at the point of application) an applicant can be in order for them to be considered for an application with us.

Our policy notes:

The maximum age of each applicant should be no greater than 89 years old. Our maximum term at this age would be 5 years.

Our outside policy allowances:

Last updated:

15 August 2018

Age Limits: Maximum Age at Term End Without Pension Proof ( max retirement age )

Our standard acceptability

70

Criteria definition:

Specifies the maximum age we might be able to accept before proof of acceptable pension income would be required. This figure can vary from applicant to applicant as it often depends upon other factors such as an applicant's planned retirement age. Therefore the value shown is the maximum age we may be able to lend to before pension proof would be required and assumes applicants planned retirement age is not sooner than our stated maximum.

Our policy notes:

We will only allow a mortgage term to age 70 where no pension income is being assessed.

Our outside policy allowances:

Last updated:

29 August 2018

Age Limits: Minimum Age at Application

Our standard acceptability

18

Criteria definition:

Specifies our minimum age at point of application requirement for residential mortgages. 

Our policy notes:

The minimum age of each applicant must be 18.

Our outside policy allowances:

Last updated:

15 August 2018

Age Limits: Retirement Interest Only (RIO) MAXIMUM Age at Application

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so, do we have a MAXIMUM AGE AT APPLICATION requirement.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Age Limits: Retirement Interest Only (RIO) Maximum Age at Term End

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so, do we have a maximum age at the end of the term requirement. Mortgage lenders are not required to set a fixed term for the mortgage and so the repayment date can be when the borrower dies or goes into care, as with Lifetime Mortgages. 

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Age Limits: Retirement Interest Only (RIO) Minimum Age at Application

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so, do we have a minimum age requirement.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Arrangement Fees Can Be Added When Exceeding LENDING LTV Limits

Our standard acceptability

No

Criteria definition:

Indicates if we allow borrowers to add the arrangement fee (where one is payable) to the mortgage advance where this will mean the max lending policy loan to value will be exceeded. 

Our policy notes:

Family Building Society does not allow fees to be added where it means the lending loan to value limits will be exceeded.

Our outside policy allowances:

Last updated:

29 August 2018

Arrangement Fees Can Be Added When Exceeding PRODUCT LTV Limits

Our standard acceptability

No

Criteria definition:

Indicates if we allow borrowers to add the arrangement fee (where one is payable) to the mortgage advance where this will mean the product loan to value will be exceeded.

Our policy notes:

Family Building Society does not allow fees to be added where it means the product loan to value limits will be exceeded.

Our outside policy allowances:

Last updated:

29 August 2018

Arrears (secured/mortgage)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have a history of mortgage or secured loan arrears.

Our policy notes:

Any existing mortgage or secured loan must be up to date at the time of application. A maximum of one month’s arrears within the last 12 months will be allowed, provided the account is currently up to date. An explanation of any arrears will be required.

Our outside policy allowances:

Last updated:

15 August 2018

Arrears (unsecured)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have a history of unsecured loan arrears.

Our policy notes:

Any existing mortgage/rent/loan must be up to date at the time of application. A maximum of one month’s arrears within the last 12 months will be allowed, provided the account is currently up to date. An explanation of any arrears will be required.

Our outside policy allowances:

Last updated:

15 August 2018

Back to back (Purchase - Other)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

In the case of Back to back (Purchase - Other) it indicates if we are able to potentially accept applications for purchases where the current owner has owned the property for less than 6 months and is now wishing to sell for a reason other than due to a previous part exchange or a lender repossession.

Our policy notes:

The property must be owned at least six months.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Purchase - Part Exchange)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

In the case of Back to back (Purchase - Part Exchange), it indicates if we are able to potentially accept applications for purchases where the current owner took the property as a part exchange on a previous sale. An example would be where a builder sold a property to someone and took their property as a part exchange and now wishes to sell that property and the part exchange falls within the last 6 months.

Our policy notes:

We do not accept back to back remortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Purchase - Repossessed)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

In the case of Back to back (Purchase - Repossessed), it indicates if we are able to potentially accept applications for purchases where the current owner is a lender that has repossessed the property being sold from the previous owner in the past 6 months. 

Our policy notes:

We would expect the property to have been owned at least six months.

Our outside policy allowances:

Last updated:

29 August 2018

Back to Back (Remortgage - Bridging)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

Back to Back (Remortgage - Bridging) indicates if we will accept applications where the customer has funded the purchase from a bridging loan and now wishes to mortgage the property.

Our policy notes:

We normally expect properties to have been owned at least 6 months.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Remortgage - Customer Funded)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

Back to back (Remortgage - Customer Funded), indicates if we can accept applications where the customer has funded the purchase from their own funds and now wish to mortgage the property.

Our policy notes:

The property must be owned at least six months in this situation.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Remortgage - Inherited)

Our standard acceptability

Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

Back to back (Remortgage - Inherited) 
indicates if we will accept applications where the customer has inherited a property and now wish to mortgage it on a residential basis.

Our policy notes:

We will consider remortgages where an inherited property has been owned for less than 6 months.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Remortgage - Other)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

In the case of Back to back (Remortgage - Other) it indicates if we are able to potentially accept remortgage applications where the current owner has owned the property for less than 6 months and is now looking to remortgage for a reason other than due to the property being inherited, remortgaging having recently ported, to repay bridging finance or to mortgage having originally purchase the property for cash.

Our policy notes:

We do not accept back to back remortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Back to back (Remortgage - Ported)

Our standard acceptability

Not Acceptable

Criteria definition:

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

Back to back (Remortgage - Ported) 
indicates if we will accept applications where the customer has recently moved and ported their mortgage, their product has come to an end shortly after and they now wish to remortgage. For example, Jeff moved into his new property last month and ported his existing mortgage across so as to avoid an early repayment charge on his then-current mortgage. The current product, however, expires about a month after his move in date and so he would like to remortgage to a new lender in order to obtain a new product even though he has only been in the property for one month.

Our policy notes:

We do not accept back to back remortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Adoption Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Adoption Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Attendance Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Attendance Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

This source of income is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Carers Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Carers Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Child Benefit

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Child Benefit as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Child Tax Credits

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept child tax credits as an allowable income type for affordability purposes. 

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Constant Attendance Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Constant Attendance Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Disability Living Allowance (DLA)

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Disability Living Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Employment and Support Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Employment and Support Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

This source of income is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Guardian Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Guardian Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

We will not accept this form of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Industrial Injuries Disablement Benefit

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Industrial Injuries Disablement Benefit as an acceptable source of income for affordability purposes.

Our policy notes:

We would not wish to take this source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Personal Independence Payment (PIP)

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Personal Independence Payment as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Universal Credit

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Universal Credit as an acceptable source of income for affordability purposes.

Our policy notes:

Family Building Society does not accept universal credit as an acceptable income type.

Our outside policy allowances:

Last updated:

29 August 2018

Benefit Income: Working Tax Credits

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept working tax credits as an allowable income type for affordability purposes. 

Our policy notes:

Unfortunately, this source of income is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Can extend mortgage offer

Our standard acceptability

Yes

Criteria definition:

Indicates if we can potentially extend a clients mortgage offer beyond the standard expiry.

Our policy notes:

Documentation and the valuation may need to be updated if these items exceed six months old.

Our outside policy allowances:

Last updated:

29 August 2018

Concessionary purchase (Family)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept concessionary purchase applications where the current owner is related to one of the applicants. For example, Mr Smith has agreed to sell a property he owns to his grandson (Joe) for £150,000. The property is worth £200,000. Joe wishes to purchase the property for £150,000 and would like a lender who will use the difference between the property value and the purchase price as a deposit (£50,000).


Our policy notes:

We can accept the equity being 'gifted' as the deposit for a family purchase. The family member who is the vendor must vacate the property and not retain a financial interest.

Our outside policy allowances:

Last updated:

29 August 2018

Concessionary purchase (Landlord)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept concessionary purchase applications where the current owner is the landlord of the property and the applicant(s) are the tenants. For example, Mr Landlord has agreed to sell the property he Lets to his tenants (Tom and Sally) for £150,000. The property is worth £200,000. Tom and Sally wish to purchase the property for £150,000 and would like a lender who will use the difference between the property value and the purchase price as a deposit (£50,000).

Our policy notes:

The Society will lend up to 100% of the purchase price or 80% of the valuation, whichever is the lower. We insist on an insolvency indemnity to be arranged by the solicitors.

Our outside policy allowances:

Last updated:

29 August 2018

Concessionary purchase Where Giftor Will Remain

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept concessionary purchase applications where the current owner is providing a gift of equity AND WILL REMAIN IN THE PROPERTY. For example, Mr Lane has agreed to sell a property he owns to his son (Tony) for £150,000. The property is worth £200,000. Tony wishes to purchase the property for £150,000 and would like a lender who will use the difference between the property value and the purchase price as a deposit (£50,000) and is happy for Mr Lane senior to remain in the property.

Our policy notes:

Family Building Society does not accept the situation where it is a concessionary purchase where the giftor will remain an occupant of the property.

Our outside policy allowances:

Last updated:

29 August 2018

Consent to Let a Room (via AirBnB or similar)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we allow borrowers to Let a room via services such as AirBnB or similar. FOR CLARIFICATION this is for the situation whereby the borrower resides in the security property and Lets a room in that property.

Our policy notes:

We are unable to accept applications with Let a room

Our outside policy allowances:

Last updated:

29 August 2018

Consent to Let, Tied Accommodation

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially allow applicants that are in tied accommodation to take a residential product and give the applicant permission to Let the property whilst they remain in the tied accommodation. For example an applicant who is moving into or currently in tied accommodation linked to their employment (e.g. boarding school teacher, vicar/minster, estate worker, army barracks etc) and will remain in this situation until their job ceases at some point in the future. They'd like to purchase a property that they intend to live in at a later date but would like to Let the property whilst they remain in tied accommodation.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Contract Reassignment

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to accept the situation whereby the purchaser is looking to buy a new build property from a third party (not the builder/developer) who has yet to complete on the transaction. An example of this is whereby a third party has secured the property off plan and exchanged contracts but has not completed. They then sell the contract to a new purchaser. This is known as 'contract reassignment'. Sometimes this is for a premium of the original purchase price and sometimes it is without a premium.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Agency work

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Agency work as an acceptable source of income for affordability purposes.

Our policy notes:

We would not accept income from an agency.

Our outside policy allowances:

If employment is based on agency income but has been in existence for three years or more please refer the application for further consideration.

Last updated:

29 August 2018

Contractor Income: CIS Contractor

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept CIS Contractor as an acceptable source of income for affordability purposes.

Our policy notes:

We can accept income from a CIS contractor however we would regard them as self-employed and would ask to see their last two year's SA302s or accounts.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Fixed Term Contract

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Fixed Term Contract as an acceptable source of income for affordability purposes.

Our policy notes:

These are generally acceptable but need to be assessed on a case by case basis. Please refer these to the Society for individual assessment.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: IT Consultant

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept IT Contractor as an acceptable source of income for affordability purposes.

Our policy notes:

IT contractors are usually paid via their own limited company and so are self-employed. In this instance we would treat them as we would any self-employed individual.If they are employed on a PAYE basis (sometimes through an 'umbrella company' we can consider them under our contractor criteria. The minimum daily rate would have to be £350 per day and two years consistent history of contracting would need to be provided. We calculate income for 'employed' contractors as daily rate times 5 days times 48 weeks.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Nursing Bank

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Nursing Bank as an acceptable source of income for affordability purposes.

Our policy notes:

We would expect the applicant to have two year's experience as a bank nurse.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Piecework Contract

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Piecework Contract as an acceptable source of income for affordability purposes.

Our policy notes:

We would accept this income if there is sufficient evidence provided justifying a consistent level of income over a reasonable period of time (normally two years).

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Probationary contract

Our standard acceptability

Not Acceptable

Criteria definition:

Specifies if we accept someone's income who is on a 'probationary contract'. A probationary contract is not the same as a probationary period. If your client is simply in a probationary period then you should check that specific criteria.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Seasonal Contract

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Seasonal Contract as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Short Term Renewable Contract

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Short Term Renewable Contract as an acceptable source of income for affordability purposes.

Our policy notes:

If for self-employed contract workers these are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Sub contractor

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Sub contractor as an acceptable source of income for affordability purposes.

Our policy notes:

Sub contractors normally refer to those employed under the CIS scheme and, as such, we regard them as self-employed.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Temporary Contract

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will accept Temporary Contract as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept applications from those on temporary contracts as we do not feel this income can be relied on.

Our outside policy allowances:

Last updated:

29 August 2018

Contractor Income: Umbrella Company

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can consider contractor income where the income paid to the applicant is paid via an umbrella company.

Our policy notes:

Family Building Society can potentially consider contractor income that is paid via an umbrella company.

We would treat income as we would a zero hours employee and look for a history of employment in that industry or role together with sight of the contractor's last two years' P60s or SA302s. Where applicable, we would also take into account deductions for 'employer' National Contributions (where these are paid for by the contractor) and the umbrella company charges when assessing affordability.

Our outside policy allowances:

Last updated:

07 November 2018

Contractor Income: Zero Hours Contract

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Zero Hours Contract as an acceptable source of income for affordability purposes.

Our policy notes:

A track record demonstrating income must be provided covering no less than a 2 year period.

Our outside policy allowances:

Last updated:

29 August 2018

County Court Judgements (CCJs) (Satisfied) potentially accepted

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have had/or have satisfied CCJs registered against their name.

Our policy notes:

One County Court Judgement (CCJ), with a total value less than £500, within the last three years subject to being satisfied and a satisfactory explanation provided.

Our outside policy allowances:

Last updated:

15 August 2018

County Court Judgements (CCJs) (Unsatisfied) potentially accepted

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have had/or have unsatisfied CCJs registered against their name. 

Our policy notes:

We will not accept applications where CCJs exist that have not been satisfied.

Our outside policy allowances:

Last updated:

15 August 2018

Credit Checks with Callcredit

Our standard acceptability

no

Criteria definition:

Indicates if we use Callcredit as a credit reference agency when assessing applications.

Our policy notes:

We currently don't use Callcredit for our credit search facility

Our outside policy allowances:

Last updated:

15 August 2018

Credit Checks with Equifax

Our standard acceptability

Yes

Criteria definition:

Indicates if we use Equifax as a credit reference agency when assessing applications.

Our policy notes:

We currently use Equifax for our credit search facility

Our outside policy allowances:

Last updated:

15 August 2018

Credit Checks with Experian

Our standard acceptability

No

Criteria definition:

Indicates if we use Experian as a credit reference agency when assessing applications.

Our policy notes:

We currently don't use Experian for our credit search facility.

Our outside policy allowances:

Last updated:

15 August 2018

Credit Scores?

Our standard acceptability

No

Criteria definition:

Indicates if we use 'credit scoring' to assess a client(s) mortgage application usually, at, agreement in principle (AIP) stage.

Our policy notes:

We don't credit score applications. Applications are assessed individually based on their own merit by underwriters.

Our outside policy allowances:

Last updated:

29 August 2018

Criminal Convictions

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applicants that have a criminal record.

Our policy notes:

Family Building Society can potentially accept applicants with criminal convictions.

Our outside policy allowances:

Last updated:

29 August 2018

Day 1 Remortgage (if inherited property)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept remortgage applications from an applicant who has recently inherited the property. For example, James inherited a property today and wishes to remortgage it to raise some funds. 

Our policy notes:

We would consider applications for a day one remortgage on an inherited property if it were to improve the property or buy out other beneficiaries.

Our outside policy allowances:

Last updated:

29 August 2018

Day 1 Remortgage (NOT inherited property)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept day one remortgage applications. An example of this type of situation would be where an applicant has recently purchased a property at auction for cash and then wishes to release funds by remortgaging the property straight away. 

Our policy notes:

We would not accept a day 1 remortgage that is not an inherited property.

Our outside policy allowances:

Last updated:

29 August 2018

Debt Management Plan (Current/Unsatisfied)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant who is currently in a debt management plan.

Our policy notes:

We do not accept applications where there is an existing and unsatisfied debt management plan.

Our outside policy allowances:

Last updated:

15 August 2018

Debt Management Plan (satisfied)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant who has previously had a debt management plan that is now satisfied.

Our policy notes:

We do not accept applications from applicants who have had a satisfied debt management plan.

Our outside policy allowances:

We could consider applicants who have had a satisfied debt management plan where this was satisfied at least three years ago. Please refer the application for further consideration.

Last updated:

15 August 2018

Debt Related: Debt being repaid fully or partially ignored

Our standard acceptability

Yes

Criteria definition:

Indicates if, when assessing affordability, we are able to potentially ignore debts that an applicant is intending to repay on or before completion of the new mortgage. 

Our policy notes:

If applicants indicate that a credit commitment is to be repaid on or prior to completion we will ignore it from an affordability perspective. It is our standard policy to condition any mortgage offer to stipulate that the commitment be settled if affordability requires it.

Our outside policy allowances:

Last updated:

29 August 2018

Debt Related: Expiring debt can be partially or fully ignored

Our standard acceptability

Yes

Criteria definition:

Indicates if, when assessing affordability, we are able to potentially ignore (in part or in full) loans that are coming to an end (typically 6 months or less to run). 

Our policy notes:

We usually ignore loans which have less than 12 months to run. These still need to be declared on the application form.

Our outside policy allowances:

Last updated:

29 August 2018

Debt Related: Payday loan (current)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant who is currently in a payday loan credit agreement

Our policy notes:

We do not accept applications where any applicant has a payday loan.

Our outside policy allowances:

Last updated:

15 August 2018

Debt Related: Payday loan (previous)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant who has had a payday loan in the past but is not currently in a payday loan credit agreement.

Our policy notes:

We do not accept applications from applicants who have taken a payday loan.

Our outside policy allowances:

Please refer applicants where a payday loan hasn't been used for at least 12 months. Evidence of the satisfactory conduct of the applicant's current account will be required.

Last updated:

15 August 2018

Defaults (satisfied) potentially accepted

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have had/or have satisfied defaults registered against their name.

Our policy notes:

One default, with a total value less than £500, within the last three years subject to being satisfied and a satisfactory explanation provided.

Our outside policy allowances:

Last updated:

29 August 2018

Defaults (unsatisfied) potentially accepted

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications from applicants that have had/or have unsatisfied defaults registered against their name

Our policy notes:

Unsatisfied defaults are not acceptable

Our outside policy allowances:

Last updated:

29 August 2018

Discharged Bankrupt (years)

Our standard acceptability

3

Criteria definition:

Indicates if we can accept discharged bankrupts and if so how long a client has to have been discharged for. For example, Mr Smith was made bankrupt 7 years ago and was discharged one year later so has been discharged for 6 years. 

Our policy notes:

We can consider discharged bankrupts as long as they have been discharged at least three years, have no subsequent adverse registered credit and can provide a satisfactory explanation. Please refer these for consideration prior to an application being submitted.

Our outside policy allowances:

Last updated:

15 August 2018

Employment Income: Additional Duty Hours

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Additional Duty Hours as an acceptable source of income for affordability purposes.

Our policy notes:

As long as this source of income is regular and can be evidenced in payslips we will accept 50%.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Additional Responsibility Allowance

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will accept Additional Responsibility Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

100% of this source of income can be taken.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Bonus (Annual)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept annual bonus as an allowable income type for affordability purposes.

Our policy notes:

We are able to take 50% of regular bonus (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Bonus (Half Yearly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept half-yearly bonus as an allowable income type for affordability purposes. 

Our policy notes:

We are able to take 50% of regular bonus (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Bonus (Monthly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept monthly bonus as an allowable income type for affordability purposes.

Our policy notes:

We are able to take 50% of regular bonus (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Bonus (Quarterly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept quarterly bonus as an allowable income type for affordability purposes. 

Our policy notes:

We are able to take 50% of regular bonus (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Car Allowance

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept car allowance as an allowable income type for affordability purposes. 

Our policy notes:

We would accept 100% of this source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Commission (annual)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept annual commission as an acceptable source of income for affordability purposes.

Our policy notes:

We are able to take 50% of regular commission (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

If we can see consistently high levels of commission are worked then we may look to take more than 50%. It is recommended that these cases are referred prior to submission and the last two year's P60s are provided in addition to the last three month's payslips.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Commission (half yearly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept half-yearly commission as an acceptable source of income for affordability purposes.

Our policy notes:

We are able to take 50% of regular commission (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

If we can see consistently high levels of commission are worked then we may look to take more than 50%. It is recommended that these cases are referred prior to submission and the last two year's P60s are provided in addition to the last three month's payslips.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Commission (monthly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept monthly Commission as an acceptable source of income for affordability purposes.

Our policy notes:

Providing we can see this is a regular source of income we will take up to 50%.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Commission (quarterly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept quarterly commission as an acceptable source of income for affordability purposes.

Our policy notes:

Providing we can see this is a regular source of income we will take up to 50%.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Employers Housing Allowance

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Employers Housing Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

If we can see this is a guaranteed source of income we will take 100%.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Employers Mortgage Subsidy

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Employers Mortgage Subsidy as an acceptable source of income for affordability purposes.

Our policy notes:


We will take 100% of this source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Employment Income from Family Business

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Employment Income from Family Business as an acceptable source of income for affordability purposes.

Our policy notes:

Employed income from a family business is acceptable subject to confirmation of the income from the external accountant.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Foreign currency

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Foreign currency as an acceptable source of income for affordability purposes.

Our policy notes:

We accept employed incomes paid in a foreign currency so long as the mortgage application is on an interest only basis.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Large Town Allowance

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Large Town Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

We can take 100% of guaranteed income.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: London Weighting

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept London Weighting as an acceptable source of income for affordability purposes.

Our policy notes:

We would accept 100% of this source of income. Evidence of this would need to be evident in payslips or an employment reference.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Mileage Allowance

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept mileage allowance an applicant receives from his/her employer as part of the affordability assessment.

Our policy notes:

Family Building Society does not accept mileage allowance as an acceptable source of income for affordability purposes.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Overtime (less than monthly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept overtime which is paid less frequently than monthly (for example quarterly) as an acceptable source of income for affordability purposes.

Our policy notes:

We are able to take 50% of regular overtime (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

If we can see consistently high levels of overtime are worked then we may look to take more than 50%. It is recommended that these cases are referred prior to submission and the last two year's P60s are provided in addition to the last three month's payslips.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Overtime (weekly or monthly)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept monthly or less overtime as an acceptable source of income for affordability purposes.

Our policy notes:

We are able to take 50% of regular overtime (as long as we can see it is a regular feature of the employment). There is flexibility to take more if the employment justifies it. Please refer cases where more than 50% is required.

If we can see consistently high levels of overtime are worked then we may look to take more than 50%. It is recommended that these cases are referred prior to submission and the last two year's P60s are provided in addition to the last three month's payslips.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Parental/Maternity leave pay (back to work salary)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept the client's full salary when they return to work after Parental/Maternity leave pay.

Our policy notes:

Acceptable subject to a check being made to ensure that the Applicant has statutory rights to return to work, and has a stated intention to do so. Confirmation will need to be obtained of the Applicant’s ability to service the mortgage repayments during the period of leave, e.g., what income will be received, or evidence of savings. Subject to the above proving satisfactory, income may be taken into consideration in the usual way.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Salary (paid cash in hand)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept salary paid in cash as an allowable income type for affordability purposes. For example, Mr Jones works as a fruit picker on the local farm and is paid weekly in cash.

Our policy notes:

Although we expect most incomes to be paid into personal accounts we accept that some jobs may still receive cash in hand. As there is less of an audit trail we are more cautious when assessing this type of income.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Second Job

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept income from a second job as an acceptable source of income for affordability purposes.

Our policy notes:

50% of income from second job, providing the Applicant has been in the job for at least six months and is permanently employed.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Shift Allowance

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Shift Allowance as an acceptable source of income for affordability purposes.

Our policy notes:

Providing this is a regular source of income we will take up to 50%.

Our outside policy allowances:

Last updated:

29 August 2018

Employment Income: Supply Teacher

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Supply Teacher income as an acceptable source of income for affordability purposes.

Our policy notes:

Family Building Society can potentially accept supply teacher income for affordability purposes.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Contractors Minimum Experience Requirement (Months)

Our standard acceptability

24

Criteria definition:

Indicates if we have a general 'minimum contracting experience requirement' threshold for contractors that must be met in order for their income to be considered.

Our policy notes:

Family Building Society has a minimum experience requirement for contractors of 24 months.

Our outside policy allowances:

Last updated:

08 November 2018

Employment: Contractors Weekly Multiplier for Income Assessment

Our standard acceptability

48

Criteria definition:

Indicates how we assess contractor income which will either be on a self-employed basis or based on the contractor's day rate indicated by a weekly multiplier. For example 'Lender A' will calculate a contractor's income based on the weekly amount * 48 where '48' indicates the weekly multiplier and 'Lender B' will treat them as self-employed and income will be assessed in line with their self-employed policy. 

Our policy notes:

We can consider contractor workers who are self-employed (possibly via their own limited company) using a multiple of their weekly contract rate or simply taking their income via their accounts/SA302s.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Employed with Voluntary Breaks

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept a situation whereby someone is employed but takes an unpaid break from employment for a period greater than what would constitute a holiday. For example, John works 9 months of the year in an office job but in June, July and August each year he takes 3 months off in order to pursue other things (for example a seasonal second job or charity work). After the break, he returns to his office job.

Our policy notes:

We normally only accept breaks that do not exceed two weeks.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Minimum length of time employed (months)

Our standard acceptability

0

Criteria definition:

Specifies if there is a minimum number of months (if so how many) employed applicants must have been continuously employed for their income to be considered in affordability.

Our policy notes:

We have no minimum period of employment although we ask for three year's history. We would be concerned if we could see employment changing frequently within that period. We would normally expect any probationary period to have been completed before we consider a mortgage application.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Minimum length of time in current job (months)

Our standard acceptability

0

Criteria definition:

Specifies if there is a minimum length of time a person must have been in their current job and if so how many months. 

Our policy notes:

We have no minimum period in their current job although we would normally expect that they have completed any probationary period before an application was submitted.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Pending new job salary accepted

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially use an applicants salary for a job they have yet to start when assessing affordability.

Our policy notes:

We would not normally consider an income from a wholly new job prior to it's start.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Pending pay rise accepted

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept an applicants salary who are set to get a pay rise in the near future. For example, Sally is currently earning a salary of £20,000 but this will be increasing to £22,000 in a couple of months. 

Our policy notes:

We can consider payrises providing they can be evidenced and are normally to occur within the next three months.

Our outside policy allowances:

Last updated:

29 August 2018

Employment: Probationary Period

Our standard acceptability

Not Acceptable

Criteria definition:

Specifies if we will allow a clients income to be considered for affordability if they are in a probationary period.

Our policy notes:

We would normally expect an applicant's probationary period to have been completed prior to submitting an application.

Our outside policy allowances:

Last updated:

29 August 2018

Expat Residential Mortgage

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider residential applications from expatriate applicants.

Our policy notes:

Family Building Society can potentially accept residential applications from UK expat. applicants resident in the following countries:

Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, India, Ireland, Italy, Japan, Kuwait, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands (Includes The Netherlands Antilles and Aruba), New Zealand, Norway, Poland, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovak Republic, Slovenia, South Korea, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom (Includes UK Crown Dependencies), United States,

The following countries are also acceptable but only if the application is submitted by an authorised introducer (please contact our New Business team for details) due to enhanced due diligence requirements:-

China, Oman, & South Africa

Our outside policy allowances:

Last updated:

29 August 2018

Flat/Maisonette Maximum LTV (New Build)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates the maximum potential loan to value (LTV) we can accept where the property type is a NEW BUILD flat or NEW BUILD maisonette.

Our policy notes:

We do not accept new build flats/maisonettes.

Our outside policy allowances:

Last updated:

29 August 2018

Flat/Maisonette Maximum LTV (Standard)

Our standard acceptability

80

Criteria definition:

Indicates the maximum potential loan to value (LTV) we can accept where the property type is a flat or maisonette and it is NOT considered a new build.

Our policy notes:

The maximum LTV we can consider is 80% LTV providing applicants have evidence of a current mortgage or tenancy they have maintained.

Our outside policy allowances:

Last updated:

29 August 2018

Foreign Nationals (Living Overseas)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider applications from foreign nationals living overseas who wish to obtain a residential mortgage here in the UK. For example, a Chinese applicant who does not live or work in the UK who wants to purchase property here in the UK on a residential basis as he wants a residence in the UK (perhaps for his family to reside).

Our policy notes:

Family Building Society does not lend to Foreign Nationals living overseas.

Our outside policy allowances:

Last updated:

07 November 2018

Foreign Nationals (with indefinite leave to remain)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are potentially able to accept applications from foreign nationals that DO HAVE indefinite leave to remain

Our policy notes:

We do accept applications from foreign nationals with a permanent right to reside.

Our outside policy allowances:

Last updated:

29 August 2018

Foreign Nationals (WITHOUT indefinite leave to remain)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to accept applications from foreign nationals that DO NOT have indefinite leave to remain

Our policy notes:

We would not prepared to accept applications from non-EU nationals without a permanent right to reside.

Our outside policy allowances:

Last updated:

29 August 2018

Guarantors

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept guarantor applications.

Our policy notes:

Normally the Society would require the Borrower’s income to be sufficient to service the proposed new mortgage advance on its own and the application will be required to pass the Society’s affordability test. The Society can however consider applications where a guarantors income is required to support the applicant (or even repay the mortgage) and in circumstances where the Guarantors income is required to service the loan in any way in addition to that of the Borrowers, full verification will be required and the case must pass the affordability test, taking into account any outgoings that the Guarantors may have. Our expectation is that the borrower would be in a position to take on the full mortgage repayments after approximately five years and we would expect them to be in an employment that is likely to lead to that growth in income.

Guarantors should be close family members. i.e. mother, father, brother, sister etc

Our outside policy allowances:

Last updated:

29 August 2018

Help to Buy Equity Loan

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept Help to Buy (Equity Loan) applications.

Our policy notes:

We do not currently accept purchases under the Help to Buy scheme.

Our outside policy allowances:

Last updated:

29 August 2018

Help to Buy Equity Loan Remortgage

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept remortgage applications where a Help to Buy Equity Loan exists and will continue to exist on completion of the remortgage.

Our policy notes:

Unfortunately, the Society does not do Help to Buy mortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Help to Buy Equity Loan Remortgage with Capital Raising

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially consider remortgage applications with an element of capital raising where there exists a help to buy equity loan and it will continue to exist on completion of the remortgage.

Our policy notes:

Unfortunately, the Society does not do Help to Buy remortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Help to Buy: Equity Loan Rate for Affordability

Our standard acceptability

does not take part in Help to Buy Equity Loan

Criteria definition:

Indicates if we will take the 'Equity Loan' portion as a commitment for affordability assessment and if so at what rate of interest is it calculated. 

Our policy notes:

Unfortunately we don't take part in the Help to Buy Equity Loan scheme.

Our outside policy allowances:

Last updated:

29 August 2018

House/Bungalow Maximum LTV (New Build)

Our standard acceptability

80

Criteria definition:

Indicates the maximum potential loan to value (LTV) we can accept where the property type is a NEW BUILD house/bungalow.

Our policy notes:

The maximum LTV we can consider is 80% providing applicants can evidence maintaining a current mortgage or tenancy agreement.

Our outside policy allowances:

Last updated:

29 August 2018

House/Bungalow Maximum LTV (Standard)

Our standard acceptability

80

Criteria definition:

Indicates the maximum potential loan to value (LTV) we can accept where the property type is a house or bungalow and it is NOT considered a new build.

Our policy notes:

The maximum LTV we can consider is 80% providing applicants can evidence maintaining an existing mortgage or tenancy agreement.

Our outside policy allowances:

Last updated:

29 August 2018

Income made up primarily of benefits

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept income where it is primarily made up of benefits. An example of this would be where benefit income exceeds earned income or represents more than 50% of total income.

Our policy notes:

We will not accept income from benefits.

Our outside policy allowances:

Last updated:

29 August 2018

Income Multiple (Joint) Maximum

Our standard acceptability

No Maximum

Criteria definition:

Indicates the maximum income multiple that cannot be exceeded when assessing how much joint applicants are able to borrow. This is the maximum potential income multiple and should just be used as a guide as other factors may reduce this figure.

Our policy notes:

The Society does not base lending on income multiples. Our preference is to use an affordability model available on our website.

Our outside policy allowances:

Last updated:

29 August 2018

Income Multiple (single) Maximum

Our standard acceptability

4.5

Criteria definition:

Indicates the maximum income multiple that cannot be exceeded when assessing how much single applicants are able to borrow. This is the maximum potential income multiple and should just be used as a guide as other factors may reduce this figure.

Our policy notes:

The maximum multiple we will go to is 4.5 times income.

Our outside policy allowances:

Last updated:

29 August 2018

Individual Voluntary Arrangements - IVA (Years satisfied)

Our standard acceptability

3

Criteria definition:

Indicates if we can potentially consider borrowers who have had an IVA and if so how many years it must have been satisfied for. An IVA is satisfied when the payment plan has been completed. For example, a home buyer is looking to obtain a mortgage to fund a house purchase but entered into an IVA 6 years ago which consisted of a 5-year plan to repay the agreed amount to their creditors. The plan was successfully completed without any unsatisfactory conduct so their IVA has now been satisfied for 1 year.

IMPORTANT NOTE: An IVA usually stays on the credit file for 6 years from the date it was REGISTERED not from the date it was satisfied which typically occurs 5 years after the date the IVA was entered into (the registered date). 


Our policy notes:

We will accept applications from applicants who have had satisfied IVAs for more than three years and with a satisfactory explanation for the circumstances leading up to the IVA.

Our outside policy allowances:

Last updated:

15 August 2018

Individual Voluntary Arrangements - IVA (Years since registered)

Our standard acceptability

6

Criteria definition:

Indicates if we can potentially consider borrowers who have had an IVA and if so how many years ago it must have been registered. An IVA is registered when a payment plan is agreed with the creditors. For example, a home buyer is looking to obtain a mortgage to fund a house purchase but entered into an IVA 6 years ago which consisted of a 5-year plan to repay the agreed amount to their creditors. The plan was successfully completed without any unsatisfactory conduct so their IVA has now been satisfied for 1 year and was registered 6 years ago

IMPORTANT NOTE: An IVA usually stays on the credit file for 6 years from the date it was REGISTERED not from the date it was satisfied which typically occurs 5 years after the date the IVA was entered into (the registered date). 

Our policy notes:

We will look at satisfied IVAs only three years from when they are satisfied.

Our outside policy allowances:

Last updated:

15 August 2018

Individual Voluntary Arrangements (IVA)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider an application from an applicant who has previously had an Individual Voluntary Arrangement (IVA) registered against them. 

This criteria displays if a person who has had an IVA can be considered on a general level but you should read the policy notes and related criteria carefully to dig deeper with regard to your client's specific situation.


Our policy notes:

We will accept applications from applicants who have had satisfied IVAs for more than three years and with a satisfactory explanation for the circumstances leading up to the IVA.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Annual lump sum repayment

Our standard acceptability

No

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is the borrowers intention to make periodic lump sum reductions from savings, bonus payments, sale of assets and the like.

Our policy notes:

We are unable to accept annual lump sum repayments as an acceptable repayment strategy for an interest only mortgage.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Existing endowment or ISA

Our standard acceptability

Yes

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is from the proceeds of an existing endowment or ISA.

Our policy notes:

For an existing endowment policy a copy of latest statement dated within the last 12 months giving the current projected maturity value. Mortgage must not exceed the value using the middle figure of the three growth rates provided. For an existing ISA a copy of the latest statement, dated within the last 12 months. Value to be assessed at 80% of the figure stated.

Our outside policy allowances:

Last updated:

29 August 2018

Interest Only: Minimum Equity Requirement

Our standard acceptability

No Minimum

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so do we have a minimum equity requirement for interest-only lending.

Our policy notes:

Family Building Society has no minimum equity requirement for interest only lending.

Our outside policy allowances:

Last updated:

29 August 2018

Interest Only: Minimum Income Requirement

Our standard acceptability

No Minimum

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so do we have a minimum income requirement for interest-only lending. 

Our policy notes:

Family Building Society has no minimum income requirement for interest only lending.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Other assets

Our standard acceptability

No

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are there any other acceptable assets that we could potentially accept as an acceptable means of repaying an interest-only mortgage. This does not include the standard repayment method like sale of mortgage property, sale of other property, endowments, ISAs, pensions and the other standard methods of repayment.

Our policy notes:

We do not accept this repayment method.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Pension Lump Sum

Our standard acceptability

Yes

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is intended to be the proceeds from a pension lump sum.

Our policy notes:

For existing policies a copy of the latest statement, from within the last 12 months, or an illustration, from the company providing the policy, giving the final maturity value. 100% of the value can be utilised taking into account any tax implications and deductions that the pension provider may make.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Pure

Our standard acceptability

No

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are we able to potentially accept mortgage applications on an interest-only basis where there is no repayment method (pure interest only).

Our policy notes:

We do not accept this repayment type.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Sale of mortgaged property

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so is 'sale of the mortgaged property' an acceptable repayment method on residential mortgages.

Our policy notes:

We can accept downsizing to a maximum 70% LTV.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Sale of other mortgaged property

Our standard acceptability

Yes

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so is the sale of another mortgaged property (Not the security property) an acceptable repayment vehicle for residential interest-only lending.

Our policy notes:

Property details and proof of ownership evidence of any outstanding mortgage and estimate of value obtained via such sources such as “Zoopla”, “Rightmove” or an estate agents estimated sale value must be provided. 100% of any equity held.Properties solely owned by the applicants only will be considered.

Our outside policy allowances:

Last updated:

29 August 2018

Interest only: Sale of other unencumbered property

Our standard acceptability

Yes

Criteria definition:

Indicates if we can potentially accept interest-only lending and if so are we able to accept interest-only applications where the repayment vehicle is the sale of another mortgage-free property (Not the security property).

Our policy notes:

Property details and proof of ownership evidence of any outstanding mortgage and estimate of value obtained via such sources such as “Zoopla”, “Rightmove” or an estate agents estimated sale value and placed on the mortgage file. 100% of any equity held. Properties solely owned by the applicants only will be considered.

Our outside policy allowances:

Last updated:

29 August 2018

Investment Income: Investment Income (not rent)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Investment Income (not rent) as an acceptable source of income for affordability purposes.

Our policy notes:

This source of income is acceptable but the level of the income taken is assessed on a case by case basis.

Our outside policy allowances:

Last updated:

29 August 2018

Investment Income: Rental Income (from mortgage free property)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Rental Income (from a mortgage-free property) as an acceptable source of income for affordability purposes.

Our policy notes:

100% of rental income that is declared to HMRC.

Our outside policy allowances:

Last updated:

29 August 2018

Investment Income: Rental Income (from mortgaged property)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Rental Income (from a mortgaged property) as an acceptable source of income for affordability purposes.

Our policy notes:

We would assess this sort of income in the same was as we would all self-employed income which is via accounts or SA302s.

Our outside policy allowances:

Last updated:

29 August 2018

Investment Income: Trust Income

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Trust Income as an acceptable source of income for affordability purposes.

Our policy notes:

We can accept income from a trust but will require a chartered/certified accountant's confirmation of the income.

Our outside policy allowances:

Last updated:

29 August 2018

Japanese Knotweed

Our standard acceptability

Acceptable

Criteria definition:

Specifies if we are able to potentially accept applications where there is evidence of Japanese knotweed at the property or near the property.

Our policy notes:

Please refer these for assessment on a case by case basis. Japanese Knotweed is an invasive plant species and can cause damage to properties if left untreated. Where a valuation report identifys that Japanese Knotweed is present a program of eradication may be required before the Society can lend

Our outside policy allowances:

Last updated:

29 August 2018

Joint application sole occupier

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we will accept joint applications where one applicant will NOT reside in the property. For example, a father and son are looking to buy a property together that only the son will live in.

Our policy notes:

We do not accept this type of application.

Our outside policy allowances:

Last updated:

29 August 2018

Joint application sole proprietor

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we will accept applications from joint borrowers where only ONE applicant will OWN the property. A good example would be a close family member who wants to help increase the borrowing capacity.

Our policy notes:

We can accept applications where one applicant only is to be an owner and up to two other applicants are to occupy the property. Each application needs to be referred for consideration prior to submission.The two categories we'd consider are where son/daughter wish to use mother/father to support their income to secure the loan they need but that in time (approximately five years) the likelihood is their income will grow sufficiently to afford the mortgage in their own right.The other scenario is where an elderly parents needs the support of their son/daughter so secure a mortgage.Please refer either scenario to us for consideration before submitting an application.

Our outside policy allowances:

Last updated:

29 August 2018

Late Payments (Not Missed)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider applications from applicants who have a history of late payments (NOT REGISTERED AS MISSED) on any credit agreements they hold.

Our policy notes:

Family Building Society can potentially accept applicants with previous 'Late Payments'.

Our outside policy allowances:

Last updated:

08 November 2018

Lending Location: Channel Islands

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in the Channel Islands.

Our policy notes:

We cannot accept applications for mortgages in Guernsey.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: England

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in England.

Our policy notes:

We do lend in England

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Isle of Man

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located on the Isle of Man.

Our policy notes:

Family Building Society does not lend on properties on the Isle of Man.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Isle of Wight

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located on the Isle of Wight

Our policy notes:

We do lend on the Isle of Wight.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Northern Ireland

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in Northern Ireland.

Our policy notes:

Family Building Society does not lend on properties in Northern Ireland.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Scilly Isles

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in the Scilly Isles.

Our policy notes:

Family Building Society does not lend on properties in the Scilly Isles.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Scotland

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in Scotland.

Our policy notes:

Family Building Society does not lend on properties in Scotland.

Our outside policy allowances:

Last updated:

29 August 2018

Lending Location: Wales

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending on properties located in Wales.

Our policy notes:

We do lend in Wales.

Our outside policy allowances:

Last updated:

29 August 2018

Let to Buy (Existing lender consent to let)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially allow a customer to Let their existing residential mortgaged property. 

Our policy notes:

The Society will consider allowing an existing customer let their existing residential property and obtain a consent to let.

Our outside policy allowances:

Last updated:

29 August 2018

Let to Buy (Onward Purchase)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are potentially able to arrange the new residential mortgage where the existing residential mortgaged property is going to be Let with a different lender

Our policy notes:


Providing an applicant has obtained a consent to let from their existing lender we can consider a new application for an onward purchase.

Our outside policy allowances:

Last updated:

29 August 2018

Let to Buy (Remortgage current residential to Buy to Let)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications to remortgage onto a buy to let basis when the current mortgage is residential. For example, Jack wants to move out of his current residential mortgaged property, remortgage onto a buy to let and purchase a new residential property to live in. This criteria relates to converting the current residential onto a buy to let mortgage.

Our policy notes:

We can accept applications for a remortgage onto a buy to let basis subject to our normal BTL criteria.

Our outside policy allowances:

Last updated:

29 August 2018

Lodgers

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications where there is/will be a lodger residing in the security property.

Our policy notes:

We will not accept an application where a lodger is present.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum debt to income ratio

Our standard acceptability

100+

Criteria definition:

Indicates the maximum potential debt to income (DTI) ratio we might accept. For example, an applicant has outstanding unsecured debts of £26,000 and a salary of £40,000. Therefore their DTI is 65%. This criteria indicates if we have a maximum and if so what it is.

Our policy notes:

The Society does not have a maximum debt to income ratio.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size

Our standard acceptability

No Maximum

Criteria definition:

Indicates the maximum potential loan size we can consider lending. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type, loan to value etc.

Our policy notes:

We have no maximum loan size. Please refer loans over £1.5m.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size (75% LTV)

Our standard acceptability

500000

Criteria definition:

Indicates the maximum potential loan size we can consider lending at 75% loan to value or less. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type etc.

Our policy notes:

We will lend up to £500,000 for loans up to 75% LTV

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size (80% LTV)

Our standard acceptability

350000

Criteria definition:

Indicates the maximum potential loan size we can consider lending at 80% loan to value or less. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type etc.

Our policy notes:

We will lend up to £350,000 for loans up to 80% LTV (please note applicants need to have maintained an existing mortgage or tenancy agreement to qualify).

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size (85% LTV)

Our standard acceptability

0

Criteria definition:

Indicates the maximum potential loan size we can consider lending at 85% loan to value or less. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type etc.

Our policy notes:

We do not consider loans at this LTV.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size (90% LTV)

Our standard acceptability

0

Criteria definition:

Indicates the maximum potential loan size we can consider lending at 90% loan to value or less. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type etc.

Our policy notes:

We do not lend over 80% LTV.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size (95% LTV)

Our standard acceptability

0

Criteria definition:

Indicates the maximum potential loan size we can consider lending at 95% loan to value. Be aware that this relates to the maximum and other factors may reduce this maximum such as property type etc.

Our policy notes:

We do not consider loans at this LTV.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan Size Retirement Interest Only (RIO)

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what our maximum loan size is for Retirement Interest Only (RIO) applications.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan to Value (LTV) for Interest Only mortgages

Our standard acceptability

75

Criteria definition:

Indicates if we can consider Interest Only lending on residential mortgages and if so up to what loan to value (LTV). Take care to check other factors such as:

  • Is there a minimum equity requirement?
  • Is their a minimum income requirement?
  • Is there a minimum property valuation?
  • Is the repayment vehicle acceptable to us?
  • Can any borrowing over the stated max LTV be taken on a repayment basis?

Our policy notes:

Family Building Society considers interest only applications up to a maximum loan to value (LTV) of 75%

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Purchases

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum loan to value (LTV) for Retirement Interest Only (RIO) purchase applications.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Remortgage Balance Swap

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum loan to value (LTV) for Retirement Interest Only (RIO) remortgage applications where there is no element of capital raising and it is a simple balance swap.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Remortgage with Capital Raising

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum loan to value (LTV) for Retirement Interest Only (RIO) remortgage applications where there is additional capital being raised.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum number of applicants allowed

Our standard acceptability

4

Criteria definition:

Indicates the maximum number of applicants able to go on a mortgage application.

Our policy notes:

We can consider applications for up to four applicants.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum number of applicants income used for affordability

Our standard acceptability

4

Criteria definition:

Indicates how many applicants we can factor into the affordability calculation.

Our policy notes:

We will accept up to four applicants on a mortgage application and will consider incomes from all.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum number of storeys considered for lending on ex local authority flats

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates the maximum number of stories we can consider when lending on ex-local authority high rise flats.

Our policy notes:

We do not lend on ex-local authority flats/maisonettes.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum number of storeys considered for lending on flats

Our standard acceptability

4

Criteria definition:

Indicates the maximum number of stories we can consider when lending on high rise flats.

Our policy notes:

The maximum number of floors we can consider is four stories although we can consider lending on flats in blocks with more floors but these should be referred individually before application submission.

Our outside policy allowances:

We can consider lending on properties five stories and above but these need to be referred.

Last updated:

29 August 2018

Maximum Term (Years)

Our standard acceptability

40

Criteria definition:

Indicates the maximum term a mortgage can be taken over.

Our policy notes:

Our maximum term is 40 years. However, the actual maximum term is linked to the oldest applicant's age. Please refer to our website for more information.

Our outside policy allowances:

Last updated:

29 August 2018

Maximum Term (Years): Retirement Interest Only (RIO)

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum term for Retirement Interest Only (RIO) applications. Lenders do not have to set a fixed term for the mortgage and so the repayment date can be when the borrower dies or goes into care, as with Lifetime Mortgages.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum Income Requirement

Our standard acceptability

No Minimum

Criteria definition:

Indicates if we have a minimum income requirement for residential mortgage applications and if so what it is.

Our policy notes:

Family Building Society does not have a minimum income requirement.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum Loan Size

Our standard acceptability

45000

Criteria definition:

Indicates the minimum loan size (if there is one) that we accept for new applications.

Our policy notes:

Our minimum loan is £45,000

Our outside policy allowances:

Last updated:

15 August 2018

Minimum Loan Size Retirement Interest Only (RIO)

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what the minimum loan requirement for Retirement Interest Only (RIO) applications is.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum period background property let before can be ignored (months)

Our standard acceptability

2

Criteria definition:

Indicates the minimum period (in months) any background properties that are Let or to be Let must have been Let for before they can potentially be discounted from a commitment point of view for affordability purposes. 

Our policy notes:

We state that the property needs to be let either on or shortly after the completion of the mortgage. Although we don't stipulate exactly how long that is we would normally expect the property to be let within a month or two of completion.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum Property Value

Our standard acceptability

120000

Criteria definition:

Indicates if we have a minimum property value we require for new applications.

Our policy notes:

Our minimum property value is £120,000.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum Property Value for Retirement Interest Only (RIO)

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so if we have a minimum property value requirement.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum remaining lease at application

Our standard acceptability

55

Criteria definition:

Indicates the minimum required lease remaining at the date of application we can potentially accept. For example, 

Our policy notes:

The minimum unexpired term of the lease needs to be 55 years at application.

Our outside policy allowances:

We can consider shorter leases where the purpose of the remortgage is to extend the lease on completion.

Last updated:

29 August 2018

Minimum remaining lease at end of term

Our standard acceptability

50

Criteria definition:

Indicates the minimum required lease remaining at the end of the mortgage term we can potentially accept. For example, Alex is looking to purchase a flat which currently has a remaining lease term of 90 years and wishes to take out a mortgage over 20 years. Therefore his remaining lease at the end of the mortgage term will be 70 years (90-20=70).

Our policy notes:

The Society requires an unexpired lease of 50 years at the end of the term of the mortgage.

Our outside policy allowances:

Last updated:

29 August 2018

Minimum Term (Years)

Our standard acceptability

5

Criteria definition:

Indicates the minimum term a mortgage can be taken over.

Our policy notes:

Our minimum term is 5 years.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: AEDIS

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if AEDIS is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Build Assure

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Build Assure is an acceptable new build warranty to us on new build properties.

Our policy notes:


This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Building Life Plans

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Building Life Plans is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Buildzone

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Buildzone is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Checkmate (Castle 10)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Checkmate (Castle 10) is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable. Where outbuildings, such as a detached garage, are included in the construction, an endorsement to include these in the cover is required)

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: CRL Management Ltd

Our standard acceptability

Acceptable

Criteria definition:

Indicates if CRL Management Ltd is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Global Home Warranties

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if Global Home Warranties is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: LABC

Our standard acceptability

Acceptable

Criteria definition:

Indicates if LABC is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: NHBC Guarantee

Our standard acceptability

Acceptable

Criteria definition:

Indicates if NHBC Guarantee is an acceptable new build warranty to us on new build properties.

Our policy notes:

We will accept NHBC guarantees.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Premier Guarantee Scheme

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Premier Guarantee Scheme is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Professional Consultants Certificate

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if Professional Consultants Certificate is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Protek

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if Protek is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Q Assure Build

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if Q Assure Build is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

New Build Warranty: Zurich Municipal "New Build"

Our standard acceptability

Acceptable

Criteria definition:

Indicates if Zurich Municipal "New Build" is an acceptable new build warranty to us on new build properties.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Non Simultaneous Sale and Purchase

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept a situation (on a residential basis) whereby an applicant is not selling their related sale property on the same day as the onward purchase. For example, this situation might arise when there is a deadline on a new build purchase and the sale is not quite ready to complete resulting in a non-simultaneous sale and purchase.

Our policy notes:

We can only accept these where the applicants have sufficient incomes to service any existing mortgage on their existing property. Any additional borrowing required to fund the deposit on the purchase must be referred.

Our outside policy allowances:

Last updated:

29 August 2018

Number of credit reference agencies used

Our standard acceptability

1

Criteria definition:

Indicates the number of credit reference agencies we may use during the entire application process. 

Our policy notes:

We currently use Equifax only as our credit search facility.

Our outside policy allowances:

Last updated:

29 August 2018

Offer expiry time (New Build)

Our standard acceptability

150

Criteria definition:

Displays the number of days a NEW BUILD mortgage offer is valid for.

Our policy notes:

Our offers are valid, as a standard, for five months for discounted products and to a specific date for fixed rates (see our product guide).

Our outside policy allowances:

Last updated:

29 August 2018

Offer expiry time (Standard - Remortgages)

Our standard acceptability

174

Criteria definition:

Displays the number of days a standard REMORTGAGE mortgage offer is valid for in DAYS.

Our policy notes:

Family Building Society mortgage offers for standard remortgage cases are valid for a period of five months from the date of the application form.

Our outside policy allowances:

Last updated:

08 November 2018

Offer expiry time (Standard)

Our standard acceptability

150

Criteria definition:

Displays the number of days a STANDARD mortgage offer is valid for.

Our policy notes:

Our offers are valid for five months, as a standard, for discounted products or to a specific date (see our product guide) for fixed rates.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Bursary

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept Bursary as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Foster Care Income

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept foster care income as an allowable income type for affordability purposes. For example, Mr & Mrs Jones receive £20,000 per year in foster care income and wish to apply for a mortgage based upon this income. 

Our policy notes:

Applicants whose main income is from fostering, and is therefore in essence the Applicant’s business, should be treated as self-employed. Their income must be assessed via their accounts or approved Tax Returns.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Lodger Income

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will potentially accept lodger income as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Maintenance (not through the courts)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept maintenance that is by verbal agreement between the separating parties as an acceptable source of income for affordability purposes. Specifically, maintenance that is not via court order, CSA assessment or similar.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Maintenance (through the courts)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Maintenance (through the courts) as an acceptable source of income for affordability purposes.

Our policy notes:

We would accept this source of income providing we can evidence the payments received in the applicant's bank statements and this isn't the main source of their income.

Our outside policy allowances:

Last updated:

29 August 2018

Other Income: Stipend

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept stipend as an allowable income type for affordability purposes.

Our policy notes:

We do not accept this as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Overpayment facility as standard (percentage)

Our standard acceptability

10

Criteria definition:

Indicates the amount you can usually overpay (subject to product availability) without penalty.

Our policy notes:

Borrowers can overpay up to 10% without penalty.

Our outside policy allowances:

Last updated:

29 August 2018

Partner in a professional LLP: Affordability Assessment

Our standard acceptability

Accounts / SA302

Criteria definition:

Indicates how a partner, in a professional Limited Liability Partnerships income, will be assessed.

Our policy notes:

Family Building Society will assess partners in professional partnership LLPS the same as we assess Self-Employed applicants when assessing income.

Our outside policy allowances:

Last updated:

07 November 2018

Partner in a professional LLP: Minimum Length of Time Requirement (Months)

Our standard acceptability

24

Criteria definition:

Indicates the minimum length of time (IN MONTHS) a person must have been in the Limited Liability Partnership (LLP) for their income to be considered by us.

Our policy notes:

Family Building Society has a minimum length of time in the partnership of 24 months.

Our outside policy allowances:

It is possible that we would consider a far shorter period than two years where a partner has bought into an existing professional partnership (such as doctors, dentists, solicitors, accountants etc).

Last updated:

07 November 2018

Pension Income: Annuity

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept an annuity as an acceptable source of income for affordability purposes.

Our policy notes:

We will accept income from annuities as long as they are for life.

Our outside policy allowances:

Last updated:

29 August 2018

Pension Income: Pension - War Disablement

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Pension - War Disablement as an acceptable source of income for affordability purposes.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Pension Income: Pension - War Widower

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Pension - War Widower as an acceptable source of income for affordability purposes.

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Pension Income: Pension Credit

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept Pension Credit as an acceptable source of income for affordability purposes.

Our policy notes:

We do not accept benefits as a source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Pension Income: Private Pension

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Private Pension as an acceptable source of income for affordability purposes.

Our policy notes:

We will accept income from a private pension.

Our outside policy allowances:

Last updated:

29 August 2018

Pension Income: Self Administered Drawdown Pension

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can consider income from a self-administered drawdown pension.

Our policy notes:

Family Building Society can potentially consider self administered drawdown pension income.

The Society's usual stance is to take the SIPP/SASS fund and divide it by the term of the mortgage.

Our outside policy allowances:

Last updated:

07 November 2018

Pension Income: State Pension

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept State Pension as an acceptable source of income for affordability purposes.

Our policy notes:

We accept 100% of this source of income.

Our outside policy allowances:

Last updated:

29 August 2018

Portable mortgages as standard

Our standard acceptability

Yes

Criteria definition:

Indicates if our mortgages are usually portable as standard.

Our policy notes:

Our products are portable.

Our outside policy allowances:

Last updated:

29 August 2018

Previously Repossessed (years ago acceptable)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept applicants that have previously had a property repossessed and if so how many years ago we require the repossession to have taken place.

Our policy notes:

Unfortunately, we are unable to lend to any borrower who has been previously repossessed.

Our outside policy allowances:

Last updated:

29 August 2018

Professional Landlord (Rent is primary source of income)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept professional landlords where their primary income source is from the rent from their portfolio. For example, Jess wants to obtain a mortgage and her only source of income (or her main source of income) is derived from the rent she receives from her portfolio of rental properties.

Our policy notes:

Family Building Society can potentially accept professional landlords who wish to use rental income as their primary income source

Our outside policy allowances:

Last updated:

29 August 2018

Properties with Asbestos

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where there is evidence of asbestos present.

Our policy notes:

Family Building Society does NOT lend on properties where Asbestos is identified.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: 100% Timber Construction

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept 100% timber construction properties - this is NOT the same as timber-framed.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Concrete construction

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are able to potentially accept concrete construction properties.

Our policy notes:

Prefabricated or large panel concrete construction (LPS) are not acceptable. Pre-fabricated reinforced concrete construction (PRC) May be considered if the property has been repaired by PRC Homes with a brick external skin and has the benefit of a 60 year guarantee, and the Valuer confirms property is readily saleable. NB. If the property is either semi-detached or terraced, all properties in the row must have been repaired. Concrete block construction designated Mundic are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Easiform

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are able to potentially accept Easiform construction properties.

Our policy notes:

Laing Easi-Form construction (providing in good condition) is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Flying Freehold

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept properties where there exists a flying freehold.

Our policy notes:

Flying freeholds are acceptable providing they don't exceed more than 20% of the floor area and the valuer confirming that the presence of the flying freehold will not adversely affect saleability, and the Solicitor confirming that the Title Deeds contain adequate rights of shelter and support plus arrangements for maintenance and repair.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Majority Flat Roof

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to accept applications on properties that have majority flat roof. We classify 'majority' as anything over 50%.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Modern method of construction (MMC)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties where the construction type is Modern method of construction (MMC).

Our policy notes:

Not normally accepted but considered on a case by case basis. These need to be referred to an underwriter to be assessed on a case by case basis.

Our outside policy allowances:

Please refer cases of good loan to value for consideration as an exception.

Last updated:

29 August 2018

Property Construction: Modular and POD Construction

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on a property where the construction type is 'Modular' or 'POD'.

Our policy notes:

Family Building Society does not lend on properties where the construction type is modular and POD construction.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Mundic block

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties where the construction type is Mundic block.

Our policy notes:

Our general stance is we won't lend on properties where the construction, or part of the construction, is from Mundic block.

Our outside policy allowances:

Please refer for individual consideration with the address of the property and any existing reports that may assist the underwriter in making a decision.

Last updated:

15 August 2018

Property Construction: No-Fines

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties where the construction type is No-Fines.

Our policy notes:

Wimpey No Fines construction (providing in good condition) is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Non repaired prefabricated reinforced concrete

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept NON repaired prefabricated reinforced concrete as suitable security for lending purposes.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Repaired prefabricated reinforced concrete

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept repaired prefabricated reinforced concrete as suitable security for lending purposes.

Our policy notes:

Pre-fabricated reinforced concrete construction (PRC) May be considered if the property has been repaired by PRC Homes with a brick external skin and has the benefit of a 60 year guarantee, and the Valuer confirms property is readily saleable. NB. If the property is either semi-detached or terraced, all properties in the row must have been repaired.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Steel framed

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept steel framed properties as suitable lending security.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Thatched roof

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept properties that have any element of a thatched roof.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Construction: Timber framed

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept timber framed properties.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Factors: Contaminated Land

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on properties that are on contaminated land.

Our policy notes:

Family Building Society will not consider properties that are situated on contaminated land.

Our outside policy allowances:

Last updated:

07 November 2018

Property Factors: Next to Commercial (Class A1 – shops and retail outlets)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class A1 commercial premises. Class A1 businesses are shops and retail.

Our policy notes:

Family Building Society can potentially lend on properties that border class A1 commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class A2 – professional services)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class A2 commercial premises. Class A2 businesses are professional services.

Our policy notes:

Family Building Society can potentially lend on properties that border class A2 commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class A3 – food and drink)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class A3 commercial premises. Class A3 businesses are for food and drink.

Our policy notes:

Family Building Society will not lend on properties that border class A3 commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class A4 – drinking establishments)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class A4 commercial premises. Class A4 businesses are drinking establishments.

Our policy notes:

Family Building Society will not lend on properties that border class A4 commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class A5 – hot food and takeaway)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class A5 commercial premises. Class A5 businesses are hot food and takeaway.

Our policy notes:

Family Building Society will not lend on properties that border class A5 commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class B)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class B commercial premises. Class B businesses are considered further business and industrial activities.

Our policy notes:

Family Building Society can potentially lend on properties that border class B commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class C)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class C commercial premises. Class C businesses are considered hotels, hostels and dwelling houses.

Our policy notes:

Family Building Society will not lend on properties that border class C commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Class D)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders Class D commercial premises. Class D businesses are considered non-residential institutions. Examples are museums, day nurseries, libraries.

Our policy notes:

Family Building Society can potentially lend on properties that border class D commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Next to Commercial (Sui Generis)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on a property where it borders 'Sui Generis' commercial premises. Certain uses do not fall within any use class and are considered 'sui generis' (Lit. Unique / of its own kind). Such uses include: theatres, houses in multiple occupation, hostels providing no significant element of care, scrap yards. Petrol filling stations and shops selling and/or displaying motor vehicles. Retail warehouse clubs, nightclubs, launderettes, taxi businesses, amusement centres and casinos.

Our policy notes:

Family Building Society will not lend on properties that border class 'Sui Generis' commercial premises.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Overhead Power Lines

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on properties that have overhead power lines running above them.

Our policy notes:

Family Building Society will not lend on properties that have overhead power lines running above them.

Our outside policy allowances:

Last updated:

07 November 2018

Property Factors: Part Renovated (Is Habitable)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on properties that are 'part renovated' but are in fact considered habitable by a surveyor.

Our policy notes:

Family Building Society can potentially lend on properties that have been part renovated that are likely to be considered habitable by a surveyor. Subject to valuers comments.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Part Renovated (Not Habitable)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on properties that are 'part renovated' and considered non-habitable by a surveyor.

Our policy notes:

Family Building Society will not lend on properties that have been part renovated that are likely to be considered NOT habitable by a surveyor.

Our outside policy allowances:

Last updated:

08 November 2018

Property Factors: Underpinned within last 10 years

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on properties that have been underpinned in the last 10 years.

Our policy notes:

Family Building Society can potentially lend on properties that have been underpinned in the last 10 years.

Our outside policy allowances:

Last updated:

08 November 2018

Property has self contained annex

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties that contain a self-contained annex within the grounds of the property.

Our policy notes:

Properties with annexes are outside of policy.

Our outside policy allowances:

Properties with annexes can be considered but these will need to be referred to an underwriter prior to submission of an application.

Last updated:

15 August 2018

Property Type Studio Flat Minimum Floor Area (Sq Metres)

Our standard acceptability

We do not lend on studio flats

Criteria definition:

Indicates the area in square metres required when lending on studio flats.

Our policy notes:

Unfortunately, we do not lend on studio flats.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Commonhold Properties

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially lend on commonhold properties.

Our policy notes:

Family Building Society can potentially lend on commonhold properties.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Ex local auth flat/maisonette

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to lend on ex-local authority flats/maisonettes.

Our policy notes:

We would not lend on this property type.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Ex local authority house/bungalow

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are potentially able to lend on ex-local authority houses/bungalows.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Farmhouse (where farmhouse and land are contiguous)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to lend on farmhouses where the farmhouse and land are contiguous.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Flat above commercial food outlet

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept flats above a commercial food outlet.

Our policy notes:

We would not accept this sort of property.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Flat above commercial offices

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept flats that are above commercial offices.

Our policy notes:

Prestige locations only. Properties should have separate title and access. Valuer to confirm the property is readily saleable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Flat above commercial pub

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept flats that are above a pub.

Our policy notes:

We would not consider this type of property.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Flat above shop (not food outlet)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are able to potentially accept flats above a shop that is NOT a food outlet.

Our policy notes:

Family Building Society can potentially lend on flats/apartments that are above a shop that is not a food outlet.

Our outside policy allowances:

Last updated:

08 November 2018

Property Type: Freehold flats and maisonettes

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept a flat or maisonette where the tenure is freehold.

Our policy notes:

Freehold flats/maisonettes are not acceptable.

Our outside policy allowances:

Last updated:

15 August 2018

Property Type: Grade 1 Listed Building

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending on property classified as a Grade 1 Listed Building. Categories of listed buildings in England & Wales: Grade I: buildings of exceptional interest. Grade II*: particularly important buildings of more than special interest. Grade II: buildings that are of special interest, warranting every effort to preserve them.

Our policy notes:

Family Building Society does not lend on properties that are classified as a Grade 1 Listed Building.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Grade 2 Listed Building

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending on property classified as a Grade 2 Listed Building. Categories of listed buildings in England & Wales: Grade I: buildings of exceptional interest. Grade II*: particularly important buildings of more than special interest. Grade II: buildings that are of special interest, warranting every effort to preserve them.

Our policy notes:

Family Building Society can potentially lend on properties that are classified as a Grade 2 Listed Building.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Grade 2* Listed Building

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending on property classified as a Grade 2* Listed Building. Categories of listed buildings in England & Wales: Grade I: buildings of exceptional interest. Grade II*: particularly important buildings of more than special interest. Grade II: buildings that are of special interest, warranting every effort to preserve them.

Our policy notes:

Family Building Society can potentially lend on properties that are classified as a Grade 2* Listed Building.

Our outside policy allowances:

Last updated:

29 August 2018

Property Type: Mobile homes and houseboats

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to lend on mobile homes and houseboats.

Our policy notes:

We do not lend on houseboats or mobile homes.

Our outside policy allowances:

Last updated:

15 August 2018

Property Type: Studio flat

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially lend on studio flats.

Our policy notes:

Studio flats are not normally acceptable.

Our outside policy allowances:

Last updated:

15 August 2018

Property Usage: Acceptable commercial limit

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates the limit we can potentially accept where the property usage has an element of commercial use.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Agricultural restrictions

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept properties that have agricultural restrictions.

Our policy notes:

We would not lend on a property with an agricultural restriction.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Holiday/Second Home

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties that are to be used as a second or holiday home.

Our policy notes:

We will lend on a second home or holiday home to a maximum of 70% LTV.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Holiday/Second Home maximum LTV

Our standard acceptability

70

Criteria definition:

If we lend on holiday/second homes, specifies what is the maximum loan to value we can lend when the property usage is second or holiday home.

Our policy notes:

We will lend on second homes or holiday homes.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Home for dependant

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties that are classed as a home for a dependant.

Our policy notes:

These are acceptable on normal terms.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Home for dependant maximum LTV

Our standard acceptability

80

Criteria definition:

If we lend on homes for dependants, indicates the maximum loan to value (LTV) we can consider.

Our policy notes:

These are acceptable up to 80% LTV which is our normal maximum.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Live/Work units

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept applications on properties defined as Live/Work units.

Our policy notes:

This type of property is not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property Usage: Mixed Use Residential / Commercial

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially lend on properties that are classified as mixed use for both residential occupation and commercial use.

Our policy notes:

Family Building Society will not lend on properties that have mixed use commercial/residential.

Our outside policy allowances:

Last updated:

08 November 2018

Property with acreage

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to accept properties that have a significant amount of land (properties that have acreage).

Our policy notes:

These are not acceptable unless the land is separated from the main house' title. Valuations are assessed on the house and immediate gardens.

Our outside policy allowances:

Last updated:

29 August 2018

Property with Age Restrictions / Retirement Properties

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept applications from applicants who are looking to purchase a property that has an age restriction. For example, Mr Jones is looking to purchase a retirement apartment that can only be occupied by people who are at least 55 years of age.

Our policy notes:

Properties with restrictive covenants of this type are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Property with Annex where Annex will be Let

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending against a property that has an Annex and the Annex will be Let.

Our policy notes:

We do not accept properties where an annexe is let.

Our outside policy allowances:

Last updated:

29 August 2018

Property with deck access

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept properties that have deck access.

Our policy notes:

We do not accept this property type.

Our outside policy allowances:

Last updated:

29 August 2018

Property with more than one kitchen

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept an application where the security property has more than one kitchen. This is not the same as a property split into two or more units or a House of Multiple Occupation (HMO).

Our policy notes:

Properties with more than one kitchen are not normally acceptable.

Our outside policy allowances:

Consideration can be given where a property has a 'granny' annexe. These must be referred prior to submission on an application. Please provide the property address and any sales particulars (where applicable) for an underwriter to give consideration.

Last updated:

15 August 2018

Property with Restrictive Covenant Section 106

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept applications on properties that are subject to a Section 106 restrictive covenant.

Our policy notes:

Unfortunately, the Society does not lend on properties with a restrictive covenant.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage purpose: Balance Swap (maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates the maximum loan to value (LTV) we can accept where the remortgage purpose is a simple balance swap (no additional monies being raised).

Our policy notes:

We can consider up to 80% LTV for remortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage purpose: Buy out (maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates the maximum loan to value (LTV) we can accept where the remortgage purpose is to raise funds to buy out a partner or other borrower.

Our policy notes:

We can accept remortgages to buy out an existing partner up to 80% LTV

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage purpose: Buy to Let Purchase (maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates the maximum loan to value (LTV) we will accept when the reason for capital raising is to raise funds to fund or part-fund a buy to let purchase.

Our policy notes:

We will permit lending up to 80% LTV for a remortgage to purchase a buy to let.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage Purpose: Buy to Let to Residential

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially allow a residential remortgage application for owner occupation where the existing mortgage is on a Buy to Let basis.

Our policy notes:

Family Building Society can potentially consider remortgage residential applications for owner occupation on properties where the existing mortgage is a Buy to Let.

Our outside policy allowances:

Last updated:

08 November 2018

Remortgage purpose: Debt Consolidation (maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates the maximum loan to value (LTV) we will accept where there is an element of debt consolidation on a remortgage application. For example, Trevor owns a property that is worth £200,000 and has a current outstanding balance of £140,000. He would like to consolidate an unsecured loan which has an outstanding balance of £10,000 and therefore needs a total loan of £150,000 giving him a LTV of 75%. 

Our policy notes:

We will consider remortgages for debt consolidation up to 80% LTV providing the amount being raised does not exceed 49% of the total mortgage advance and 20% of the property value. In addition we will not normally permit more than five items of credit to be consolidated.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage Purpose: For Business Purposes

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider lending when the reason for capital raising is considered for 'Business Related Purposes'.

Our policy notes:

Family Building Society can potentially allow capital raising on a remortgage where the purpose of the funds is for business purposes.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage purpose: Gift Money (Maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates if we are able, and if so to what loan to value, accept remortgages where the purpose is to raise money to make a gift (for example to children to help with school fees etc or where parent(s) might want to help their children buy their first home).

Our policy notes:

We will permit capital raising to gift funds to a close family member to assist with a property purchase to 80%. We will require a certificate of understanding to be signed after offer and before completion.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage purpose: Home Improvements (maximum LTV)

Our standard acceptability

80

Criteria definition:

Indicates if we are able to and if so to what loan to value, accept remortgages where the purpose is to raise money for home improvements.

Our policy notes:

We will accept remortgages to raise funds for home improvements up to 80%.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage Purpose: Pay Tax Bill

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider lending when the reason for capital raising is to raise funds to pay a tax bill.

Our policy notes:

Family Building Society does not allow capital raising on a remortgage where the purpose of the funds is for payment of a tax bill.

Our outside policy allowances:

Last updated:

29 August 2018

Remortgage waiting period

Our standard acceptability

6

Criteria definition:

Indicates the number of months we state a person must have owned a property before it can be considered for a remortgage application. For example, John purchased a property at auction 3 months ago and now wishes to remortgage the property to raise some funds. 

Our policy notes:

We will consider remortgages after 6 month's ownership.

Our outside policy allowances:

Last updated:

29 August 2018

Retentions (Minor retentions potentially ignored)

Our standard acceptability

Yes

Criteria definition:

Indicates if we will ignore valuers small suggested retentions below a certain figure. For example, a lender might ignore any suggestions that are for £2,000 or less.

Our policy notes:

Family Building Society can potentially ignore small suggested retentions. Please call to discuss further.

Our outside policy allowances:

Last updated:

08 November 2018

Retirement Interest Only (RIO) Enhanced Terms Where Lasting Power of Attorney (LPA) Exists?

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so if we can offer enhanced terms (better interest rate, etc) if a 'Lasting Power of Attorney' is in place before completion of the proposed mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only Mortgages (RIO) at this time.

Our outside policy allowances:

Last updated:

07 November 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Benefit Income

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer RIO mortgages and if so, can consider benefit income when assessing their ability to maintain the ongoing mortgage. 

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Family Assistance

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider family assistance when assessing their ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Investment Income

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider investment income when assessing their ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Life Cover

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider life cover when assessing their ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Other Non Provable Income

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider other non-provable income when assessing applicants ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Rental Income

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider rental income when assessing an applicants ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Joint Applicants First Death Affordability Assessment: Survivors Pension

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Where a joint application is taken lenders will assess the future means of affordability of the surviving borrower following the death of another applicant. This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so can we consider the survivor's pension when assessing their ability to maintain the ongoing mortgage.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO) Lasting Power of Attorney (LPA) Required?

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so is it a requirement of Retirement Interest Only (RIO) mortgages that a 'Lasting Power of Attorney' is in place.

Our policy notes:

Family Building Society does not offer Retirement Interest Only Mortgages (RIO) at this time.

Our outside policy allowances:

Last updated:

07 November 2018

Retirement Interest Only (RIO) Offered?

Our standard acceptability

No

Criteria definition:

Indicates if we offer 'Retirement Interest Only' mortgages. RIO mortgages are specifically mortgages that can be taken on an interest-only basis with an open-ended mortgage term where the repayment vehicle is typically sale of property on the occurrence of one or more of the specified life events such as the death of either or both borrowers.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO): Can Consider Non-Guaranteed Potential Future Affordability

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

Often times applicants may be in paid employment at the time of application without a guaranteed conventional pension in place for their retirement. They could, however, have other planned methods of generating themselves an income into retirement such as purchasing an annuity with savings or receiving rental income. Whilst this criteria is not specific to those two examples it indicates if we offer Retirement Interest Only (RIO) mortgages and if so if
are we willing to consider other types of non guaranteed future projected income?

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Retirement Interest Only (RIO): Minimum Equity Requirement

Our standard acceptability

Does not offer RIO Mortgages

Criteria definition:

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so do we have a minimum equity requirement. If the repayment strategy is the sale of the mortgaged property, lenders no longer have to assume, as was the case under the previous MCOB rule, that borrowers will need to downsize. Consequently, they do not need to factor into their criteria any specific minimum equity requirement, as is the case with other interest-only mortgages.

Our policy notes:

Family Building Society does not offer Retirement Interest Only (RIO) mortgages at this time.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Aquire

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept Right to Aquire applications.

Our policy notes:

These are not acceptable but need to be referred individually.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Buy

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept Right to Buy applications.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Buy additional lending above discounted price

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept Right to Buy cases if we allow a borrower to borrow more than the discounted Right to Buy purchase price to cover other costs and home improvements. For example, John would like to purchase his council home he has been offered for £65,000 which is 100% of the discounted price (£100,000 less a £35,000 discount). He would also like to borrow an additional £5,000 to cover some legal costs and to put in a new kitchen. 

Our policy notes:

We will not lend more than the discounted purchase price.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Buy Home Improvements Allowed

Our standard acceptability

No

Criteria definition:

Indicates if we accept Right to Buy cases can we can potentially accept additional monies being raised for home improvements at the point of the Right to Buy initial purchase.

Our policy notes:

We will not advance more than the discounted purchase price.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Buy joint application sole occupier

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept Right to Buy cases can we accept a joint application for a Right to Buy application where only one borrower will reside at the property. For example, John wishes to purchase his council home that he has the right to buy on but cannot afford it on his current income. His son has offered to help but has his own separate living arrangements independent from his father. They therefore need to find a lender that would accept a joint application with only one occupier.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Right to Buy Maximum LTV (of discounted purchase price)

Our standard acceptability

100

Criteria definition:

Indicates if we accept Right to Buy cases, the maximum loan to value (LTV) of the discounted purchase price we will consider for Right to Buy applications. For example, John has the right to buy his council home which has been given an open market value of £100,000 with a discount of £35,000. The discounted purchase price is therefor £65,000. 

Our policy notes:

We can lend up to 100% of the discounted purchase price as long as the LTV based on the valuation does not exceed 80%.

Our outside policy allowances:

Last updated:

29 August 2018

Self Build Accepted

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are potentially able to offer self-build mortgages.

Our policy notes:

We do not currently accept applications for self build mortgages.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed Income: Directors Loan Payback

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can accept repayment of a directors loan as an acceptable source of income for affordability purposes. Often directors will first take back any money they introduced into the business as a directors loan before formally drawing a salary or taking dividends.

Our policy notes:

Family Building Society does not accept payback of a directors loan as an income that can be used in our affordability assessment.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed Income: Limited Company Directors (Salary and Dividends)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Salary and Dividends as the components used to assess affordability as opposed to say salary and net profit.

Our policy notes:

We would accept director's remuneration and dividends (providing dividends do not exceed the available net profit).

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed Income: Limited Company Directors (Salary and Net Profits)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Salary and Net Profit as the components used to assess affordability as opposed to say salary and dividends.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed Income: Net Profit (for sole traders and partnerships)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can accept Net Profit (for sole traders and partnerships) as an acceptable source of income for affordability purposes.

Our policy notes:

We ask for two year's account or HMRC SA302s. The Society reserves the right to average two year's figures.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Accounts or Accountant Certificates where Accountant is not Chartered or Certified

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we will accept accounts or an accountant's certificate from an accountant that does NOT have 'Chartered' or 'Certified' status.

Our policy notes:

Family Building Society does not accept accounts or accountants certificates from accountants that are not either 'Chartered' or 'Certified'

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Amount of shareholding to be considered self employed (percentage)

Our standard acceptability

33

Criteria definition:

Indicates the point at which we consider a person as self-employed as opposed to employed when they hold a shareholding in the business. The figure indicates the percentage shareholding required to be considered self-employed and anything less than this figure the applicant will be assessed as employed.

Our policy notes:


Applicants are defined as self-employed if they have a shareholding of 33% or more, of a firm. The Society defines a ‘firm’ as a Limited Company, Sole Proprietor/Trader or a Partnership between persons carrying on business together.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Can use Projection as Latest Year

Our standard acceptability

No

Criteria definition:

Indicates if we can potentially consider the self-employed applicants latest year figures as a projection from their accountant.

Our policy notes:

Family Building Society does not accept a projection for the latest years self employed figures for affordability purposes.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Declining Profits

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept a self-employed applicants income where the profits have declined year on year.

Our policy notes:

Declining profits without any evidence the business has improved would not be acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Latest years self employed figures for affordability

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially use the latest years figures exclusively (rather than an average) for affordability assessment. 

Our policy notes:

This is subject to underwriter discretion but we can consider working on the latest year's profit figures so long as the trend over the last three years is upwards. Substantial increases are less likely to be taken unless evidence supplied that this level of profit can be maintained.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Limited Company: Other allowable income

Our standard acceptability

No

Criteria definition:

This indicates if we are able to add back in any accounting deductions. For example for a limited company, allowing car allowance and/or pension contributions to be added to overall customers self-employed income.

Our policy notes:

We do not add back any deductions.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Loss in Latest Year

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially consider Self-Employment income from an applicant how has made a loss in their latest year.

Our policy notes:

Family Building Society can potentially consider income from self-employed applicants who have made a loss in the latest year subject to underwriting. Please call us to discuss this further.

Our outside policy allowances:

Last updated:

07 November 2018

Self Employed: Maximum age of latest company accounts for Limited Companies (months)

Our standard acceptability

18

Criteria definition:

Specifies the max age of the latest company accounts (in months) that we will find acceptable for income proofs for a limited company.

Our policy notes:

We would not normally accept accounts prepared more than 18 months prior to application.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Maximum age of latest company accounts for Sole Traders/Partnerships (Months)

Our standard acceptability

18

Criteria definition:

Specifies the max age of the latest company accounts (in months) that we will find acceptable for income proofs for a sole trader or partnership.

Our policy notes:

We would normally expect accounts to be no older than 18 months however please refer any that are over 12 months for underwriters to confirm they are still acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Minimum length of time self employed (months)

Our standard acceptability

24

Criteria definition:

This is the MINIMUM length of time an applicant must have been self-employed for in order for their income to be considered.

Our policy notes:

We would normally expect to see two year's accounts and/or SA302s. It is likely that a self-employed person would have been self-employed for more than two years to be able to provide these.

Our outside policy allowances:

Last updated:

29 August 2018

Self Employed: Sole Trader / Partnerships: Other allowable income

Our standard acceptability

No

Criteria definition:

This indicates if we are able to add back in any accounting deductions. For example for a sole trader, allowing spousal salary and/or use of home as an office to be added to the net profit figure.

Our policy notes:

We do not normally add back any deductions

Our outside policy allowances:

Last updated:

29 August 2018

Shared Ownership

Our standard acceptability

Not Acceptable

Criteria definition:

Specifies if we can accept shared ownership applications.

Our policy notes:

We do not currently accept shared ownership applications.

Our outside policy allowances:

Last updated:

29 August 2018

Shared Ownership Maximum Initial Share (%)

Our standard acceptability

We do not accept shared ownership applications

Criteria definition:

Indicates if we offer shared ownership mortgages and if so what is the maximum initial share we permit for a shared ownership case.

Our policy notes:

We do not currently accept applications for shared ownership.

Our outside policy allowances:

Last updated:

29 August 2018

Shared Ownership Maximum LTV (of applicants share)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we offer shared ownership mortgages and if so what is the maximum loan to value we can lend on the share the applicant is purchasing on a shared ownership basis. 

Our policy notes:

We do not currently accept shared ownership applications.

Our outside policy allowances:

Last updated:

29 August 2018

Shared Ownership Min Initial Share (%)

Our standard acceptability

We do not accept shared ownership applications

Criteria definition:

Indicates if we offer shared ownership mortgages and if so what is the minimum share we permit for shared ownership cases.

Our policy notes:

Currently, we do not lend on shared ownership.

Our outside policy allowances:

Last updated:

29 August 2018

Soft Footprint on Credit Search?

Our standard acceptability

No (Full Footprint)

Criteria definition:

Indicates if we will leave a 'soft footprint' when performing a credit search (as opposed to leaving a full/hard footprint on the credit file).

Our policy notes:

We use Equifax and we leave a hard footprint.

Our outside policy allowances:

Last updated:

29 August 2018

Solar Panels

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are able to potentially accept properties that have had solar panels installed.

Our policy notes:

These are acceptable subject to no onerous terms being contained in the lease agreement if the panels are leased.

Our outside policy allowances:

Last updated:

29 August 2018

Sole application for married couple

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept applications in sole names where the applicant is married and the husband or wife will also be residing in the property. For example, a couple may wish to keep their financial affairs separate to avoid any unwanted disputes if they were ever to split which is sometimes common when people remarry.

Our policy notes:

We usually require applications for spouses to be jointly applied.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Builders Deposit

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept builder gifted deposits as an acceptable source of deposit for new build properties.

Our policy notes:

A builder’s deposit is acceptable providing the Borrowers are providing a deposit from their own resources of at least 20%. The Valuer will be required to confirm that the valuation is not affected, and the Solicitor should confirm that the purchase price in the legal documentation matches that on the Society’s Mortgage Offer. Lending will be based on the lower of purchase price or valuation.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Concessionary

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept applications that are considered a concessionary purchase. Examples of a concessionary purchase are a grandparent selling a property to a grandchild at a genuine discount or a landlord doing the same for a tenant. For example, the property might be worth £150,000 on the open market but the owner is selling it to the buyer for £135,000 with the discount effectively becoming the deposit.

Our policy notes:

We can lend up to 100% of the discounted purchase price or 80% of the value whichever is lower. An indemnity to protect the Society might be required.

Our outside policy allowances:

Last updated:

29 August 2018

Source of Deposit: Cryptocurrency / Bitcoin

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept cryptocurrencies as an acceptable source of deposit.

Our policy notes:

Family Building Society will not consider this type of deposit.

Our outside policy allowances:

Last updated:

07 November 2018

Source of deposit: Forces Help To Buy

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept the forces help to buy scheme as an acceptable source of deposit.

Our policy notes:

These are acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Gift From Immediate Family

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept a gift from an immediate family member as an acceptable source of deposit. Immediate family usually means spouse, parent, grandparent, sibling, child or grandchild but you should check to clarify our specific definition.

Our policy notes:

We will accept deposits being gifted.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Gift from occupier NOT named on mortgage

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept a gift from an occupier who will not be named on the mortgage. An example of this situation could be whereby two friends or a couple plan to live together and one of them purchases the property and obtains the mortgage where the other party is providing the deposit (as a gift) but will not be named on the mortgage or jointly own the property.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Gifted NOT from Immediate Family

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept a gift as a deposit source outside of immediate family members such as a friend, employer or cousin for example.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Loan Repayable on Sale of Property

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we accept a loan that is secured against the property as a second charge, no monthly repayments are made and is repayable upon the sale of the property. For example, this situation could arise where parents want to help out a child to purchase a property but do not want to outright gift the money. The parent would place a second charge against the property so that when the property was sold at a later date the loan would be repaid providing there was sufficient equity remaining after any higher ranking charges (a mortgage for example) were repaid.

Our policy notes:

These are not acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Mortgage on additional property

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept monies raised from the mortgage of an additional property as an acceptable source of deposit. For example, Mr & Mrs Smith want to purchase a new home to live in. The purchase price is £200,000 and they are looking to put down a £50,000 deposit. Their deposit is being raised against another property they own which is Let. 

Our policy notes:

This is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Originated outside of EEA

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if deposits that have originated outside of the European Economic Area (EEA) as an acceptable source of deposit to us.

Our policy notes:

We do not accept funds from sources deposited outside of the EU.

Our outside policy allowances:

If the country the funds are deposited in are FATF compliant the case should be referred for further consideration.

Last updated:

29 August 2018

Source of deposit: Repayment of Ltd Company Directors Loan

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept the repayment of a limited company directors loan as an acceptable source of deposit. For example, Tom has a limited company that he personally put some money into when setting the company up. He now wishes to take that money back out of the company and use it to fund his deposit.

Our policy notes:

This source of deposit is acceptable.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Unsecured Loan

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates whether or not we will accept borrowers source of deposit as a loan. For example, a person is looking to put down a 5% deposit and borrow a 95% mortgage. The 5% deposit is a bank loan.

Our policy notes:

We do not accept deposits that have been borrowed.

Our outside policy allowances:

Last updated:

29 August 2018

Source of deposit: Vendor Gifted

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept vendor gifted deposits as an acceptable source of deposit. (NOT builder gifted deposit for new build properties). For example, John is looking to purchase a property an estate agent is selling and the current owner (not related to the buyer) has offered to help with a deposit by way of a gift.

Our policy notes:

A builder’s or vendor’s deposit is acceptable providing the Borrowers are providing a deposit from their own resources of at least 20%. The Valuer will be required to confirm that the valuation is not affected, and the Solicitor should confirm that the purchase price in the legal documentation matches that on the Society’s Mortgage Offer. Lending will be based on the lower of purchase price or valuation.

Our outside policy allowances:

Last updated:

29 August 2018

Sports Professionals

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we can potentially accept applications from sports professionals and if so how they are treated and assessed.

Our policy notes:

Family Building Society can potentially lend to applicants who are considered 'Sports Professionals'.

Our outside policy allowances:

Last updated:

29 August 2018

Unauthorized Overdraft Charges

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we are able to potentially accept applicants who have recently been charged for an unauthorised overdraft (either by exceeding their overdraft limit or by simply going overdrawn if they do not have an agreed overdraft limit). These unauthorised overdraft charges will likely appear on the client's recent bank statements.

Our policy notes:

Family Building Society does not accept applicants that have recently had unauthorized overdraft charges

Our outside policy allowances:

Last updated:

29 August 2018

Undervalue transactions

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we are able to potentially accept applications where the transaction constitutes an undervalue transaction.

Our policy notes:

We accept purchases at an undervalue providing it is not a 'distressed sale'. We will ask the solicitors to provide the appropriate indemnity as part of the conveyancing.

Our outside policy allowances:

Last updated:

29 August 2018

Visas: Family Visa (Spousal etc)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider applicants who hold a Family Visa. Types of Family Visas are spouse or partner, fiancé, fiancée or proposed civil partner, child, parent or relative who’ll provide long-term care for you.

Our policy notes:

Family Building Society will not consider applicants that hold a family visa.

Our outside policy allowances:

Last updated:

07 November 2018

Visas: Working Visa (Tier 1 - Investors, entrepreneurs and talent visas)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant that holds a Working Tier 1 Visa. These visas can be issued to Entrepreneurs, Exceptional Talents, Graduate Entrepreneurs, and Investors.

Our policy notes:

Family Building Society will not consider applicants that hold a 'Tier 1' working visa.

Our outside policy allowances:

Last updated:

07 November 2018

Visas: Working Visa (Tier 2 - Long-term work visas)

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially accept an application from an applicant that holds a Working Tier 2 Visa. These visas can be issued to General workers who've been offered a skilled position in the UK, Intra-company Transfers, Ministers of Religion and Sportspersons.

Our policy notes:

Family Building Society will not consider applicants that hold a 'Tier 2' working visa.

Our outside policy allowances:

Last updated:

07 November 2018

Affordability Calculator

Find out how much your residential client may be able to borrow. To see affordability for a Buy to Let client, use our Buy to Let calculator

Find Your Local

Business Development Manager

Your Local BDM:

Michelle Parry-Bunter

Michelle has worked for the Society for over a decade and focuses on the South Coast. Contact Michelle for help with your clients' mortgages.
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Your Local BDM:

Nathan Waller

Nathan was previously a mortgage and protection adviser, and focuses on Essex and Kent. Contact Nathan for help with your clients' mortgages.
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Your Local BDM:

Charlotte Grimshaw

Charlotte has a background working with intermediaries within the Building Society sector and focuses around the West M25 area. Contact Charlotte for help with your clients' mortgages.
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Your Local BDM:

Darren Deacon

Darren has over 28 years' Financial Services experience and focuses on both the East & West Midlands. Contact Darren for help with your clients' mortgages.
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Your Local BDM:

Paul Roberts

Paul has over 30 years' experience and focuses on the North (inc. M62 corridor), Yorkshire & North East. Contact Paul for help with your clients' mortgages.
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We do not currently have a BDM covering your area. Please contact our Mortgage Helpdesk:

Opening hours: Mon - Fri: 8am - 5.30pm, Sat: 9am - noon

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