Criteria A-Z

Our standard acceptability

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

Our standard acceptability

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

Our standard acceptability

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

Our standard acceptability

Acceptable

Criteria definition:

Our policy notes:

These are not acceptable but need to be referred individually.

Last updated:

17 July 2017

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept Right to Buy applications.

Our policy notes:

These are acceptable.

Last updated:

06 November 2018

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.

Last updated:

17 July 2017

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.

Last updated:

17 July 2017

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.

Last updated:

17 July 2017

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%.

Last updated:

17 July 2017

Our standard acceptability

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

Our standard acceptability

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

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