Criteria A-Z

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.

Last updated:

20 April 2017

Our standard acceptability

We do not currently offer Self Build mortgages

Criteria definition:

Indicates the maximum loan size we can consider on self build applications

Our policy notes:

Family Building Society does not currently offer self-build mortgages.

Last updated:

02 March 2020

Our standard acceptability

We do not currently offer Self Build mortgages

Criteria definition:

Indicates the maximum term a self build mortgage can be taken over.

Our policy notes:

Family Building Society does not currently offer self-build mortgages.

Last updated:

02 March 2020

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.

Last updated:

10 May 2018

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).

Last updated:

03 July 2017

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.

Last updated:

17 July 2017

Our standard acceptability

Acceptable

Criteria definition:

Displays if we will use 'Salary and Share of Net Profit AFTER CORPORATION TAX' as the components used to assess affordabiliy as opposed to either 'Salary and Share of Net Profit BEFORE CORPORATION TAX' or 'Salary and Dividends'

Our policy notes:

Family Building Society can potentially accept salary and share of net profits AFTER CORPORATION TAX as the primary income used when assessing income from directors of a limited company.

Last updated:

30 October 2023

Our standard acceptability

Not Acceptable

Criteria definition:

Displays if we will use 'Salary and Share of Net Profit BEFORE CORPORATION TAX' as the components used to assess affordabiliy as opposed to either 'Salary and Share of Net Profit AFTER CORPORATION TAX' or 'Salary and Dividends'

Our policy notes:

Family Building Society does not use salary and share of net profits BEFORE CORPORATION TAX as the primary income used when assessing income from directors of a limited company.

Last updated:

11 September 2020

Our standard acceptability

Not Acceptable

Criteria definition:

Indicates if we can potentially consider retained profits as an allowable income type when assessing affordability on residential applications.

Our policy notes:

Family Building Society does not accept retained profits as an acceptable source of income when assessing affordability.

Last updated:

09 September 2019

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.

Last updated:

30 October 2023

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'

Last updated:

23 October 2017

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.

Last updated:

20 April 2017

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.

Last updated:

10 May 2018

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.

Last updated:

17 July 2017

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.

Last updated:

23 May 2017

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.

Last updated:

23 May 2017

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.

Last updated:

06 November 2018

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.

Last updated:

03 July 2017

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.

Last updated:

03 July 2017

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.

Last updated:

20 April 2017