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.
No Minimum
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 offers Retirement Interest Only (RIO).
Last updated:03 March 2020
Acceptable
Criteria definition:Indicates if we can potentially lend on residential applications for properties that have been issued with a retrospective new build warranty. These warranties were specifically not in place during the build phase but taken out at a later date following completion.
Our policy notes:Family Building Society can potentially consider retrospective new build warranties.
Last updated:25 September 2019
Acceptable
Criteria definition:Indicates if we can potentially accept residential applications from an applicant who is returning to the UK and going straight into paid employment. Critically, indicates if a lender will accept an employed applicant (with no current minimum length of time in UK employment) for affordability who is returning from a non UK address to the UK.
Our policy notes:Family Building Society can potentially consider applications from applicants who are returning to the UK and going straight into employment.
Last updated:09 September 2019
Not Acceptable
Criteria definition:Indicates if we can potentially accept residential applications from an applicant who is returning to the UK and going straight into Self-Employment. Critically, indicates if a lender will accept a Self-Employed applicant for affordability who is returning from a non UK address to the UK and would essentially have zero UK trading history.
Our policy notes:Family Building Society will not applications from applicants who are returning to the UK and going straight into self-employment.
Last updated:09 September 2019
Acceptable
Criteria definition:These are not acceptable but need to be referred individually.
17 July 2017
Acceptable
Criteria definition:Indicates if we accept Right to Buy applications.
Our policy notes:These are acceptable.
06 November 2018
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.
17 July 2017
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.
17 July 2017
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.
These are not acceptable.
17 July 2017
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%.
17 July 2017
Acceptable
Criteria definition:Indicates if we can potentially consider a right to buy remortgage balance swap application within the pre-emption period
Our policy notes:Family Building Society can potentially consider a right to buy remortgage balance swap application within the pre-emption period
Last updated:11 September 2020
Acceptable
Criteria definition:Indicates if we can potentially consider a right to buy remortgage capital raising application within the pre-emption period
Our policy notes:Family Building Society can potentially consider a right to buy remortgage capital raising application within the pre-emption period
Last updated:11 September 2020
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.
20 April 2017
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
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
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
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).
03 July 2017
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.
17 July 2017
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
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
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