Mortgage Broker
Search Mortgages Direct
Independant mortgage broker Why use Mortgages Direct

Whole of mortgage market.
Exclusive mortgage schemes that are only available through mortgage brokers.
NO BROKER FEES under any circumstances
buildings insurance Buildings and Contents

Compare buildings and contents insurance
Immediate cover available
Apply on-line
Independant mortgage broker Life Cover

Compare life assurance from all major insurers
Critical illness options
Apply on-line
 
Mortgage Lending criteria

Mortgage Lending Criteria - Coventry

Coventry


Notes: The following information is general and may not apply to your mortgage. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

back to mortgage lenders

 

Mortgage


Advances
Upto 1,000,000 75% LTV

Notes
Mortgage is Portable, Mortgage is Flexible, Overpayments allowed.
The product(s) selected are fully portable. Please refer to our 'Moving your Mortgage to a New Property' brochure for further information.

Only available on a capital & interest repayment basis only.

The Privilege Rate is available to those existing borrowers holding a residential mortgage that have remained on the same Coventry scheme for 5 years or more please refer to Coventry Building Society.
A maximum term of 35 years is available for all other acceptable repayment methods.
Customers will be asked how they intend to pay off the loan if the term will take them past the age of 65.

Payment Holidays Allowed. We may allow you to take a payment holiday, providing the first six monthly payments on the mortgage have been made and the account is not in arrears. Restrictions apply to the number and frequency of payment holidays that may be taken.

Debit interest will continue to be added to the mortgage throughout the payment holiday period and will form part of the mortgage balance upon which monthly interest will be calculated.

To request a payment holiday, you must give us at least five working days’ notice prior to your regular monthly payment date. Full details of the applicable policy can be obtained on request. We will consider your circumstances and reasons for your request for a payment holiday before we decide whether to grant your request or not. We have discretion in approving any request for a payment holiday.

One mortgage valuation fee is waived up to a maximum amount of 670 if the Lender instructs the valuer. In some instances different valuation assessments may be under taken. If applicable the actual fee you pay is shown in Section 8.

Any overpayment using the direct debit overpayment facility will be applied to the mortgage immediately and interest recalculated. You will be advised of your revised monthly repayment if applicable.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment No
PEP No
Pension No
Interest only (no RV) No
With Profits No
Unit Linked No
ISA No
Split Repayment No

Fees


Arrangement : varies
Booking : varies

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
Free

Homebuyers:
upto 75,000 - 250
upto 150,000 - 350
upto 250,000 - 450
upto 350,000 - 550
upto 450,000 - 650
upto 500,000 - 705
upto 600,000 - 785
upto 700,000 - 890
upto 800,000 - 960
upto 900,000 - 1100
upto 1,000,000 - 1250

Arrangement fee can be added to the loan.(Non-refundable)
Booking fee is payable up front.(Non-refundable)
One free mortgage valuation up to the max 670, additional fees above this rate will be reduced
Only valuations conducted by the Coventry Building Society’s panel of valuers are acceptable.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lenders Conveyancing Fee - 177.43 Payable on completion. Legal and disbursement fees (payable to legal representative for searches and disbursements involved in completing your mortgage.) This is an estimate, and will only be part of the legal costs incurred.
Money Transfer Fee - 20.00 Payable on completion.
Redemption Fee - 125.00 Payable on early redemption.

Acceptable Property Types


Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat No
Flying Freehold Yes
Thatched Yes
Timber Framed Yes
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Max Discount% 75
Max Market Value% 100
New Build acceptable.
Ex-local authority flats and maisonettes are restricted to 70% LTV.

Will not lend on Freehold flats or Maisonettes.

Flats over certain types of commercial properties are restricted to 75% LTV.

Flats with more than 5 storeys are not considered, if they are ex local authority, or do not have lift access.

Flats with more than 10 storeys are not considered.
All property, flying freehold not to exceed 25% of the total property.

Timber properties are not normally acceptable but Coventry Building Society will consider modern timber framed properties provided they have an outer skin of brickwork.

Steel Frame houses and all types of property <10 years with no NHBC or equivalent properties are not accepted.

Houses with 2 Kitchens and houses with no bathroom are not accepted.

Coventry Building Society will not lend in Isle of Man, Channel Island, Scottish Isles. Except Isle of Skye

For purchase applications, the vendor must have owned the property for a minimum of 6 months.

The maximum loan to value for a new build or converted apartment/flat is 75% LTV.

The maximum loan to value for a new build house is 85% LTV.

We define new builds as properties that have been built within three years of the mortgage application or are properties to be occupied for the first time. This includes apartment/flat conversions where the number of apartments/flats in the development exceeds ten.

Applications cannot be considered where the property offered as security is a self-build property or a self-build conversion, where the construction or conversion of the property is not fully completed at the time of application.

We will not lend to flats above or adjacent to workshops, restaurants, take-aways, public houses, sex shops, massage parlours and premises that stock explosive or toxic materials (fireworks, dangerous chemicals etc).
We will not lend to flats above or adjacent to void/empty premises.
* 'adjacent to' includes properties within an 'influential' distance. This will be determined by the valuer.
For unencumbered or where there is less than 5,000 outstanding on the current mortgage the maximum LTV is limited to 50%.

New properties must have the benefit of either:
A Professional Consultant’s Certificate which are valid for the first 6 years or
An acceptable builder’s guarantee which is valid for the first 10 years

Second hand properties less than 10 years old must normally have been built with the benefit of an acceptable Builder’s Guarantee scheme subject to the following exception:
Where the property was built or converted within the past 6 years, the case will be acceptable if it was built with the benefit of a Professional Consultant’s Certificate where cover was valid for the first 6 years.

A Professional Consultant’s Certificate must be for a minimum period of 6 years from the date the property was built.

Accepted Locations : England, Scotland, Wales

Requirements


Bank Statements 2 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Refer

Insurance
Buildings Conditional

Conditions On Loan
Min Loan
Max Loan 1,000,000
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age 75 years
Min Term 1 years
Max Term 35 years

Minimum age is 18 on application

The applicant (s) must have a minimum of 1 year in continuous permanent employment. If they are in a probationary period and it is the applicant's first job the application should normally be declined.

FTB- 2 Months Bank statements will be required or for other applications if requested by the Underwriter

The maximum number of applicants is 4.
- Step-up facility is available to First Time Buyers with this product, please refer to Coventry Building Society for details.

FTBs must have 1 years of continuous employment.
FTB- Applicants who are self employed must have been trading for a minimum of 2 years and provide 1 years' accounts, accountants certificate or an SA302

Coventry Building Society will not consider FTBs who have exceeded their overdraft limit or with adverse credit,
whether the adverse credit is satisfied or not.
Refer to Coventry Building Society for Directors' requirements.
Employed applicants - Full Status
Require P60 and latest payslips and employers reference except for Self cert products. Minimum continuous employment 1 year.
Self employed - Full Status
Panel Solicitors only.

Coventry mortgages are available to any borrower that has been in continuous employment for at least 12 months, even if they have just moved to a new current role.

Cases outside lending policy are judged on their own merits and so for cases that require an amount of income discretion, please refer to lender.

Employed applicants must be able to provide evidence of income with a record of employment in a position or positions of similar nature covering the last 12 months. A short break of no more than 3 months between different positions is acceptable. There is no minimum requirement for the applicant to have been in their current role for a set period of time if the position is permanent. If however the job has a probation period the application may be considered provided the applicant is a mover or a re-mortgagor and has previously been employed in a permanent position for a minimum of 6 months and is now moving to a similar job.

All self-employed applicants must be able to provide the latest 2 year's accounts.

Applications from applicants wishing to purchase properties in their own name for owner-occupation or Buy to Let purposes, from a limited company or a Limited Liability Partnership in which they have an interest is not acceptable.

For First Time Buyer specific schemes the following rule now applies:- continuous employment for at least 1 year prior to application (in a joint mortgage situation, both applicants must have been in continuous employment for at least 1 year where both applicant’s income is being used to calculate admissible income)

Employed applicants must have been in continuous employment for the last 12 months. A break of 3 months between positions is acceptable, however no more than one 3 month break in the last 12 months is acceptable.

Nationality and Right of Abode requirements:
Applications from non-EEA nationals with indefinite leave or a right of abode to live and work in the UK can be considered provided that:
None of the applicants hold any level of diplomatic immunity.
Each applicant must have permission to live and work in the UK.
Each applicant must have been granted indefinite leave to remain or a Right of abode to live and work in the UK. A copy of the document confirming the right must be obtained and kept on file indefinitely.

Step up Age Limits
The maximum age of the 'parent' at the date of application is 65.
The maximum age of the 'first time buyer' at the end of the repayment term is 75 years.

The property must be insured by you in accordance with the conditions of this mortgage, The level of buildings cover must be no less than the rebuilding cost of the property.
Foreign Citizens Refer
Ex-Patriates Not Accepted

INCOME MULTIPLES


Based on Income > 1
3.6 + 1 or 3.6 joint

Based on Income > 40000
4 + 1 or 4 joint

Min months in current position 1
Min months in continuous service 12
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer

20 years or more to maximum lending age : Admissible income of main earner up to 40k the multiple applied is x 3.6. Admissible income of main earner 40,001 or above, the multiple applied is x 4.

AGE AT APPLICATION 55 AND UNDER: Admissible income of main earner up to 40k the multiple applied is x 3.6. Admissible income of main earner 40,001 or above, the multiple applied is x 4.

AGE AT APPLICATION 56 AND OVER:

16-19 years to maximum age - Admissible income of main earner up to 40k the multiple applied is x 3.2. Admissible income of main earner 40,001 or above, the multiple applied is x 3.4.
11-15 years to maximum age - Admissible income of main earner up to 40k the multiple applied is x 2.6. Admissible income of main earner 40,001 or above, the multiple applied is x 3.
6-10 years to maximum age - Admissible income of main earner up to 40k the multiple applied is x 2. Admissible income of main earner 40,001 or above, the multiple applied is x 2.2.
1-5 years to maximum age - Admissible income of main earner up to 40k the multiple applied is x 1.2. Admissible income of main earner 40,001 or above, the multiple applied is x 1.2.

Maximum age is up to the applicant's 70th birthday, unless they have adequate retirement income which would allow borrowing up to the applicant's 75th birthday.

For joint applications, select the multiplier based on the income of the higher earner and apply it to the total admissible income of both applicants.

The maximum potential loan to applicants whose mortgage term extends past their 70th birthday will be based on the lower of:
current income (Net of ongoing commitments), or;
future retirement income (with no deduction for ongoing commitments)

For employed applicants:

Latest P60 and latest payslip for each applicant (including Directors holding shares of less than 20% of the company they work for).

Coventry Building Society will no longer accept annual bonuses as part of the admissible income.

Self employed applicants



Directors with a 20% share or more in the company they work for:
We will request an Accountant's Certificate directly from the accountant on submission of the application.
At the point of application proof of income must be no more than 12 months old.
We may request bank statements on submission of the application.

Please note we only accept accounts audited by the following professional accountancy bodies:

Institute of Chartered Accountants (ICA)
Association of Chartered Certified Accountants (ACCA)
Chartered Institute of Management Accountants (CIMA)
Institute of Financial Accountants (IFA)
Association of Authorised Public Accountants (APA)
Chartered Institute of Public Finance & Accountancy (CIPFA)
Chartered Institute of Taxation (CIOT)
Association of International Accountants (AIA)
For Sole Traders, Partnerships, Sub-contractors:

Latest two years tax assessments (SA302s*)
At the point of application proof of income must be no more than 12 months old.
We may request bank statements on submission of the application.
*SA302s must be official and are not acceptable where they are printed from the HMRC website.
We may request further information/clarification directly from the applicant's accountant - please ensure full contact details are provided.
For contract workers

Copies of contracts demonstrating continuous employment in contracting over the last two years.
There must be a minimum of six months remaining on the existing contract. If there is less than six months remaining, this is only acceptable if the employer confirms in writing that the contract will be renewed for a minimum of a further six months or provides a copy of the new contract.

Car Allowance is an acceptable form of income provided it is an integral part of the salary package and that it is not a refund of expenses already paid out by the applicant.

UNACCEPTABLE SOURCES OF INCOME:

Income from temporary employment
Child/working family tax credits
Disability allowances
All other state benefits
Maintenance (including court ordered)
Bursaries and other educational subsidies
Foster income
Rental income where it is secondary income, expect where the applicant can confirm that the income is derived from a business, can provide 2 years accounts (1 year Buy to Lets) or two SA302s and meet all other self employed criteria
Please note that this list is not exhaustive and any similar income source may be declined.

Retired Applicants 100% of state and private pension may be used when calculating admissible income. Total admissible income is made up of total gross income minus a deduction for ongoing liabilities.
Documents required for validation:
Private Pension
- At least 2 months bank statements
- Latest pension slip
- Latest annual statement from the pension provider
State Pension
- Latest 2 months bank statements
- Latest annual letter from the Department for Work and Pensions
-Copies of the front and first two inside pages of the applicants pension book.

Total gross income is made up of:

Basic salary.
100% of gross guaranteed overtime, bonuses (excluding annual bonuses) or shift allowance.
100% of annual non-pensionable allowances forming an integral part of the remuneration package e.g. London weighting allowance. Please note that expenses such as mileage payments, meal allowances etc., are not acceptable.
Up to 50% of regular overtime, bonuses (excluding annual bonuses), shift allowance or commission.
For applicants currently employed/self-employed
Pension Projection
State retirement pension (SRP) -Annual statement of pension due on retirement
or Letter from the Department for Work and Pensions (DWP).
Private pension - Annual statement of pension due on retirement (including pension projection) or Letter from the pension provider confirming pension due on retirement.
State retirement pension (SRP) - Annual statement of pension due on retirement
or Letter from the Department for Work and Pensions (DWP).
Company/ Occupational pension - Annual statement of pension due on retirement
or Letter from the employer/ pension provider confirming pension due on retirement.

For fully-retired applicants:
State retirement pension (SRP) - At least one of the following is required: Latest two month's bank statements showing monthly pension payment or Latest annual letter from the Department for Work and Pensions (DWP)
Private pension - At least one of the following is required: Latest two month's bank statements showing monthly pension payment or Annual pension statement.
Company/ Occupational pension - At least one of the following is required:
Latest pension slip or two month's bank statements showing monthly pension payment or Latest annual statement from the pension provider.
Drawdown on pension fund - Annual statement of benefits from the pension provider.
Interest income from investments - Latest two year's tax assessments (SA302s*).
Dividend income from a portfolio of shares that owns a share in a business (100% of dividends will be acceptable) - Latest two year's tax assessments (SA302s*).
Income from a company the applicant owns that continues to provide an income in retirement - Latest two year's tax assessments (SA302s*).
Rental income from a mortgage-free property - Latest two year's tax assessments (SA302s*).
Pension documents provided must be no more than 12 months old.
Pension statements must be from the pension provider.
We reserve the right to request an accountant's certificate to finalise our lending decision.

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular Add 50% to income before multiply
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments No
Non Contributory Pension Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

Remortgage


Adverse Credit



CCJs/Defaults : Accept:
1) Max 500.00 in Defaults. These must be fully paid. This condition does not incur any rate loading.
2) Max 500.00 in CCJs. These must be fully paid. There must be no CCJss in the last 6 months. This condition does not incur any rate loading.
3) Max 250.00 in Defaults unsatisfied. This condition does not incur any rate loading.
4) Max 250.00 in CCJs unsatisfied. There must be no CCJss in the last 6 months. This condition does not incur any rate loading.
Arrears : Accept:
1) Max 1 missed payment in the last 36 months, which may be unpaid at the time of application. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
Repossessions : Not accepted.

CCJs over 3 years old considered on an individual basis.
Defaults on Mortgages and secured loans must be satisfied
Defaults over 3 years old, less than 1500 satisfied or not considered on an individual basis.
IVA and Bankruptcy not acceptable for FTB


November 2013