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Mortgage Lending criteria

Mortgage Lending Criteria - Leeds

Leeds


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

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Mortgages

Advances
Upto 750,000 75% LTV (Rmg 75%)

Notes
Mortgage is Portable
All loans are portable- this means if you move house and wish to transfer the loan to your new property you can.

For lending into Retirement:
• Retirement is defined as any loan term that extends to beyond the applicants stated retirement age or 70 years, whichever is earlier. If not known, the state pension age will be used.
• Applicants who are borrowing into retirement are restricted to a maximum term of 25 years and Capital and Interest.
• Interest only lending is not available into retirement.

Interest Only lending (where Sale of Property is the repayment vehicle) is available up to 50% LTV and is subject to 150,000 equity being held in the property.
Interest only lending (with a suitable repayment vehicle in place) is available up to 50% LTV.

Brokers submitting cases direct to Leeds Building Society will need to contact their Intermediary Account Manager (IAM) or contact the Intermediary Sales Office on 0113 216 7491 in order to ascertain the procuration fee that they will receive.

Interest Only lending can be accepted up to 50% LTV.


You are able to make overpayments to the sum of 10% of the loan amount on any part of this mortgage in each 12 month period. Overpayments, which exceed this, will incur an early repayment charge of the percentage specified in Section 10 on the amount of the excess.
The interest on this mortgage is calculated daily and you make an additional lump sum payment of any amount, the interest will be calculated on the reduced balance immediately.

Lending is subject to a satisfactory credit reference.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 50% LTV
PEP 50% LTV
Pension 50% LTV
Interest only (no RV) 50% LTV
With Profits 50% LTV
Unit Linked 50% LTV
ISA 50% LTV
Split Repayment 50% LTV

Fees


Arrangement : varies
Booking : varies

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
upto 100,000 - 230
upto 150,000 - 270
upto 200,000 - 335
upto 250,000 - 360
upto 300,000 - 405
upto 350,000 - 450
upto 400,000 - 510
upto 500,000 - 560
upto 700,000 - 710
upto 1,000,000 - 950
upto 2,000,000 - 1400

Homebuyers:
upto 50,000 - 330
upto 100,000 - 420
upto 150,000 - 500
upto 200,000 - 550
upto 250,000 - 630
upto 300,000 - 740
upto 350,000 - 850
upto 400,000 - 960
upto 500,000 - 1150
upto 600,000 - 1400
upto 700,000 - 1500
upto 800,000 - 1650
upto 900,000 - 1750
upto 1,000,000 - 1950
upto 2,000,000 - 2250

Min Valuation 40000
Please note that the booking fee of 199 is non-refundable and must be paid to the Society at the application stage. No applications will be accepted without this fee being paid.
All loans over 500,000 should be referred to Leeds Building Society for agreement in principle.
For properties valued over 2 million please refer to Leeds Building Society for the valuation fee. There is a 199 non refundable booking fee applicable on all cases which cant be added to loan


Insurance Admin - 30.00 Payable on completion.
Lenders Conveyancing Fee - 120.00 Payable on completion. Legal Fees payable on or before completion. Please note, the figure quoted here is an estimate and only covers part of the costs of legal work that you might need to pay.
CHAPS Fee - 35.00 Payable on completion.
Redemption Fee - 199.00 Payable on redemption.

Acceptable Property Types


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

Max Discount% 90
Max Market Value% 95

New Build acceptable. Minimum loan for straight re-mortgages is 25,000.
The maximum loan to value for new build properties is 80%

Self Build Lending
Self-Build Valuations - An updated revaluation will be obtained upon completion of the property / or at the final stage release.
The maximum loan to value for Self Build will be 80%. The maximum LTV for each stage of construction is 75% with full planning permission. INITIAL ADVANCE SUBJECT TO FULL PLANNING PERMISSION BEING OBTAINED
A revaluation will be required at each stage and a fee will be charged.

The minimum valuation for properties with a London post code is 85,000.
The minimum valuation for properties in the South East is 70,000.
Not available to self employed builders.
SELF BUILD LENDING IS ONLY AVAILABLE ON THE SPECIFIC SELF BUILD PRODUCT

Minimum floor area for studio properties is 60m square.

Ex-local authority properties are acceptable, but must be located in areas where re-sale can be readily achieved. A single owner occupied house located in the centre of a large, otherwise local authority tenanted estate may be difficult to sell and will therefore, be unacceptable.

In England, Scotland and Wales, ex-local authority flats are only considered if they are of satisfactory construction with secure communal access and where a proven re-sale market exists.

Acceptability is subject to:

A maximum of 4 floors in the block.

Second Properties can be considered, providing that the applicant can demonstrate an ability to support both properties.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements


Bank Statements 1 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan 5,000/Rmg 5,000
Max Loan 500,000/Rmg 500,000
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age 75 years
Min Term 5 years
Max Term 40 years
For lending into Retirement:

• Retirement is defined as any loan term that extends to beyond the applicants stated retirement age or 70 years, whichever is earlier. If not known, the state pension age will be used.
• Applicants who are borrowing into retirement are restricted to a maximum term of 25 years and Capital and Interest.
• Interest only lending is not available into retirement

Where an investment based repayment vehicle is / will be in place, the type of repayment vehicle (e.g. endowment, investment lump sum) and the estimated value of the vehicle must be recorded on the application form.

The estimated value of the vehicle must equate to at least 100% of the loan amount. In the event of this not being the case, the loan, or shortfall element must be advanced on either a capital and interest basis, or the shortfall made up by means of increasing the deposit required.

Interest Only lending - where 'Sale of Property' is the repayment vehicle, the maximum LTV is 50%.

The property must be fully insured at all times throughout the repayment period.

If you are arranging your own insurance then:-
1) A 30 insurance arrangements fee will be made
2) You must provide a copy policy schedule within 30 days of the completion date.
Foreign Citizens Not Accepted
Ex-Patriates Not Accepted

Income



Based on Income > 0
4.5 + 1 or 4.5 joint

Min months in current position none
Min months in continuous service 6
Min no. of years accounts 2
Average years taken to calculate income 3
Will consider declining profit No

Outgoings

The Society uses an affordability assessment when determining the maximum amount a borrower can afford. Please refer to www.leedsbuildingsociety.co.uk/borrowing-calculator for affordability calculator.

Credit/store card - 'annualised payments' are 3% of the current balances over 1,000
100% of Working Family Tax Credits and, Child Tax Credits (not including child care element) and disability related benefits (if guaranteed) are accepted as other income.

Guarantor Key Policy (not available on Self Build lending)- professionals only
The guarantee amount must cover the total loan amount
The guarantor’s income (less existing credit commitments) must be sufficient to support the total mortgage balance requested plus any outstanding mortgage balance the guarantor may already have
The applicant is expected to be able to afford the mortgage payment on his / her own within a reasonable period (e.g. five years).

Applicants who are older than 55 years, at the point of application, who request a mortgage term that extends beyond their 70th birthday, or stated retirement date, if earlier, proof of pension income will be required to substantiate the loan, in addition to the usual checks based on current income.

Three years accounts or a fully completed Accountants Certificate, prepared by a qualified Accountant, must be provided and, if considered necessary by the Underwriter, proof of the continuing existence of the business.

If the Accountant is not a member of one of the bodies listed below, original Self-Assessment forms issues by the Inland Revenue (SA302) certified by the branch/ introducer are required.

Acceptable Accountancy bodies:
Institute of Chartered Accountants.
Association of Chartered Certified Accountants.
Chartered Institute of Management Accountants.
Chartered Institute of Public Finance Accountants.
Association of Authorised Public Accountants.

If 3 years accounts are not available due to the length of trading, then the average of the last 2 years net profit figure, plus a satisfactory projection or Accountants Certificate showing this information may be acceptable. In such cases, 100% of the projection will be taken into account.

Cases where the LTV does not exceed 80% a only 1 years full accounts are available, due to the length of trading, may be considered. The average of the 1 years net profit figure and up to 100% of a satisfactory projection may be acceptable, providing the accounts reflect an improving position.

The income multiplier will be applied to the average of the last 3 years net profit figure.
The maximum amount of other allowable income must not exceed 100% of the household primary income.

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Annualised payments deducted from salary
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 Refer to Lender
Investment Income Refer to Lender
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 50% to income before multiply
Non Contributory Pension Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

Remortgage



Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%

Re-mortgage applications loans which include a property related capital raising element (e.g., home improvements, purchase of additional land etc.) may be considered up to a maximum of 85% LTV

Re-mortgage applications which include a non-property related capital raising element (e.g., debt consolidation, holiday etc.) may be considered up to a maximum of 75% LTV.

Adverse Credit


CCJs/Defaults : Accept:
1) Max 1 CCJs/Defaults to a max of 500.00 unsatisfied. This condition does not incur any rate loading.
Arrears : Accept:
1) No arrears (paid or unpaid) in the last 12 months. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
Repossessions : Repossessions settled 72 months ago or over will be accepted, and do not incurr any rate loading.

No missed mortgage payments in the last 12 months.

No arrears on any previous (or current) unsecured loan (including credit / store cards, mail order credit and mobile phone contracts) within the last twelve months, where the cumulative amount overdue at any point reached more than one monthly payment.

No arrears on any loan (unsecured or secured including credit / store cards, mail order credit and mobile phone contracts) within the last three years, where the cumulative amount overdue at any point reached more than two monthly payments.

No more than one county court judgements (CCJs) or default, which must have been satisfied within 3 months of issue, with a total value not greater than 500, within the last four years.

Not being subject to an Individual Voluntary Arrangement (IVA) unless discharged over six years ago.

Not being subject to a Bankruptcy Order unless discharged over 6 years ago.
Not being subject to a previous property possession within the last six years.