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.

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Owner Occupier Criteria
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.

Last updated:

22 May 2017

Income Multiple (Joint) Maximum

Our standard acceptability

4.5

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:

Our standard maximum income multiple is 4.5 times income although we can, by exception, go beyond that.

Last updated:

21 November 2019

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

Our outside policy allowances:

Our normal maximum is to lend up to 4.5 times income but, by exception, we can lend beyond this.

Last updated:

21 November 2019

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.

Last updated:

20 April 2017

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.

Last updated:

20 April 2017

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.

Last updated:

23 May 2017

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.

Last updated:

20 April 2017

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.

Last updated:

23 May 2017

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.

Last updated:

10 May 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.

Last updated:

10 May 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.

Last updated:

23 May 2017

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.

Last updated:

23 May 2017

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.

Last updated:

22 May 2017

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.

Last updated:

31 August 2017

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.

Last updated:

23 May 2017

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.

Last updated:

23 May 2017

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.

Last updated:

11 July 2017

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.

Last updated:

08 May 2017

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.

Last updated:

03 July 2017

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.

Last updated:

03 July 2017

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:

Arif Kara

Arif was previously a mortgage adviser, and focuses on North and West London. Contact Arif for help with your clients' mortgages.
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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, previously a mortgage broker, focuses on Cambridgeshire, East Sussex, Essex, Suffolk, Hertfordshire, Bedfordshire, Lincolnshire, Norfolk and Kent. Contact Nathan for help with your clients' mortgages.
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Your Local BDM:

Grace Bennett

Grace focuses around the West M25 area. Contact Grace 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 as well as the Southwest. 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:

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