Barclays Mortgage lending criteria
We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.
Barclays Mortgage Lending Criteria
Mortgage Advances
Up to £2,000,000
Notes
Illustration Type = ESIS.
Mortgage is Portable, Mortgage is Flexible, Overpayments allowed.
If you buy another property to move to, you can transfer (port) the mortgage interest rate to a new mortgage for the
purchased property in relation to an amount no greater that your outstanding mortgage balance provided that you still
meet our lending criteria at the time at the application. A final repayment charge will be payable and an early repayment
charge may be payable in respect of the mortgage that is being redeemed. Other fees may be charged when porting the
mortgage interest rate and the terms and conditions for any new mortgage product will also apply. For full details of the
terms and conditions please see the new mortgage product literature.
Our maximum term for residential Repayment mortgages is 40 years. Applicable application types: Purchase,
Remortgage and Further Advance. The maximum term for affordability will remain at 35yrs – affordability will be
assessed on the mortgage term or 35 years, whichever is lowest. Please note this excludes Family Springboard and
Interest Only (including Part & Part) mortgages, where a 25yr maximum term continues to apply.
To secure any of Barclays products for your clients you will need to book the funds via Barclays Online Fund Booking
System.
Purchases 95% LTV max.
A maximum of 90% LTV is ONLY available for like for like remortgages (based on the final redemption statement with
current mortgage provider), maximum of 85% LTV where there is any element of capital raising or Additional Borrowing.
Debt consolidation will no longer be allowed for existing or new interest-only borrowing. The only exception will be where
a customer is remortgaging to Barclays and wishes to add an ERC to the balance of the mortgage.
Houses less than or equal to £375k or Flats less than or equal to £275k
Purchase 95%
Re-Mortgage Like for Like 90%
Re-Mortgage with additional lend for capital raising 85%
Re-Mortgage with any additional lend for Debt Consolidation 80%
Additional Borrowing (Further Advance) 85%
Additional Borrowing (Further Advance) with any additional lend for Debt Consolidation 80%
New Build – Houses 90%
New Build – Flats/Apartments/Maisonettes 85%
Houses more than £375k or Flats more than £275k
Purchase 85%
Re-Mortgage Like for Like 85%
Re-Mortgage with additional lend for capital raising 85%
Re-Mortgage with any additional lend for Debt Consolidation 80%
Additional Borrowing (Further Advance) 85%
Additional Borrowing (Further Advance) with any additional lend for Debt Consolidation 80%
New Build – Houses 85%
New Build – Flats/Apartments/Maisonettes 85%
The ability to convert a Mortgage held on a Capital Repayment basis to Interest Only (either in full or in part) once the
loan has completed is not available.
Lenders Interest Only limit of 75% and Product LTV maximums apply across the main Mortgage and any Reserve.
Lender will no longer accept broker applications where an applicant is an Expatriate or Non UK Resident.
Repayment Types
Endowment acceptable - Existing Policy (minimum 12 months).
With Profits - Policy (minimum 12 months).
Unit Linked - Existing share, unit or investment trust (minimum 12 months, professionally managed).
ISA - Existing Stocks & Shares (minimum 12 months).
For Residential purchase applications with a property value up to £2 million and all Remortgage applications, customers
will not pay for or receive a copy of any non-disclosed valuation report. For Residential purchase applications with a
property value over £2 million please see 'A guide to our survey and valuation services'.
Free Valuation up to £2 million
For Residential purchase applications with a property value up to £2 million and all Remortgage applications, customers
will not pay for or receive a copy of any non-disclosed valuation report. For Residential purchase applications with a
property value over £2 million please see 'A guide to our survey and valuation services'. Where a property does not meet
the anticipated valuation and results in the chosen product maximum LTV being exceeded a new product may be chosen
from the current product range applicable at the time of the down valuation, not the range available at point of
application.
A capital reduction of 25% per annum can be made without incurring an early repayment charge. This will apply
throughout the early repayment charge period. Please refer to section 10 for details.
Following receipt of an overpayment, we will immediately reduce the mortgage balance on which interest is charged and
recalculate the amount that you owe. This means that you will get the benefit straight away.
Following receipt of a lump sum repayment, we will immediately reduce the mortgage balance on which interest is
charged and recalculate the amount that you owe and the amount that you pay. This means that you will get the benefit
straight away.
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment 75% LTV
PEP No
Pension No
Interest only (no RV) No
With Profits 75% LTV
Unit Linked 75% LTV
ISA No
Split Repayment 85% LTV
Fees
Arrangement : £ varies Can be Added
Booking : None
Early Repayment Charges
Varies
Higher Lending
None
Valuation
Basic:
up to £2,000,000 - £0
up to £2,500,000 - £1115
up to £3,500,000 - £1355
up to £5,000,000 - £1740
Valuation not disclosed to customer
Arrangement Fee, Refundable if paid upfront and the mortgage does not complete.
The Barclays valuation is the standard report for all residential applications and includes a description of the property, an
opinion of the market value of the property.
Land Registry - £0.00 Payable on completion. A non-refundable Fee that must be paid to your Conveyancer before the
loan starts. The figure quoted here is an estimate, this may be higher.
Final Repayment Charge - £80.00 Payable on redemption.
Funds Transfer Fee - £35.00 Payable on completion.
Acceptable Property Types
Freehold Flat Refer
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie Refer
Flat Over 4 Storeys Yes
Listed Building Refer
Right to Buy
Max Discount% 90
Max Market Value% 80
New Build acceptable. Houses less than or equal to £375k or Flats less than or equal to £275k
Purchase 95%
Re-Mortgage Like for Like 90%
Re-Mortgage with additional lend for capital raising 85%
Re-Mortgage with any additional lend for Debt Consolidation 80%
Additional Borrowing (Further Advance) 85%
Additional Borrowing (Further Advance) with any additional lend for Debt Consolidation 80%
New Build – Houses 90%
New Build – Flats/Apartments/Maisonettes 85%
Houses more than £375k or Flats more than £275k
Purchase 85%
Re-Mortgage Like for Like 85%
Re-Mortgage with additional lend for capital raising 85%
Re-Mortgage with any additional lend for Debt Consolidation 80%
Additional Borrowing (Further Advance) 85%
Additional Borrowing (Further Advance) with any additional lend for Debt Consolidation 80%
New Build – Houses 85%
New Build – Flats/Apartments/Maisonettes 85%
New Build/Newly Converted Properties are classed as any property which has been registered at Land Registry for less
than 2 years. Maximum LTV is 90% (subject to product availability) for purchases of new build houses for loans up to
and including £500,000 and 85% for remortgages or additional borrowing and purchases of new build flats and
maisonettes.
If the new property is not to be used as the customer’s main residence, e.g. a holiday home or flat for occupation when
visiting town, the maximum LTV must not exceed 80%.
Builders Deposits/Incentives - Lender requires an applicant to provide a minimum personal stake of 15% based on the
full purchase price from their own resources, in addition to any Builders deposit/incentives provided. Please note that
the minimum personal stake must be adjusted where other LTV or product restrictions apply.
Unencumbered Properties - Maximum mortgage available is reduced to 85% LTV in line with lenders criteria for
Remortgages - subject to product availability/LTV criteria.
Scottish Valuations - Will accept a retype/transcript of the mortgage valuation which has been prepared as part of the
Home Report or which the customer has instructed, subject to it being provided by a Barclays approved Scottish Valuer
– this is subject to certain criteria and excludes New Build. Refer to lender.
Second Homes accepted up the maximum of 80%.
Accepted Locations : England, Scotland, Wales, N Ireland
Shared ownership : Accepted
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 No
Insurance
Buildings Conditional
Conditions
Min Loan £5,000
Max Loan £2,000,000
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age none
Min Term 5 years
Max Term 40 years
If the application is for an Interest Only mortgage, the minimum loan amount is £300,000.
The LTV of the interest only element of the mortgage must not exceed 75%, however, where sale of mortgaged property
is to be used as the repayment strategy this reduces to 50%.
If the application is for an Interest Only mortgage, the minimum loan amount is £300,000.
Sole applicants will have to have a gross income of at least £75,000 to qualify for an interest-only and for joint applicants,
either one borrower must have a gross income in excess of £75,000 or, if neither person’s income meets this
requirement, then joint gross income must be at least £100,000.
Where sale of property is the interest-only repayment vehicle, the maximum LTV is 50% with a minimum of £300,000
equity – customers must also meet the minimum income threshold as detailed above.
To secure a Barclays mortgage you will need to book via our Case Booking System. Please refer to the Barclays
Intermediary website for more details.
For Interest Only Mortgages the customer must have a plausible strategy to pay off the mortgage at the end of the
mortgage term. The maximum Interest Only part of any loan is limited to 75% LTV. Where borrowing in excess of 75% is
required; part and part is allowed up to 85% LTV.
For clarity, for Part & Part mortgages, this does not change the existing maximum LTV limits for the Interest Only portion
of the loan (50% max LTV and £300k minimum equity requirement for sale of property repayment strategy, and 75% max
LTV for other repayment strategies, such as sale of stocks and shares).
Available for both shared equity & shared ownership. For loans up to and including £500,000, the max LTV for shared
ownership purchase applications is 95%. Max LTV for shared ownership like-for-like remortgages is 90%.
Applicants must have been self-employed for a minimum of 3 years providing the last 2 years trading accounts.
Employed applicants are required to have been employed by their current employer for 3 consecutive months prior to
application or to have been in continuous employment for the last 18 months with no gaps. for existing customers, the 3
months consecutive employment need not be with the same employer.
For Foreign Citizen application, all mortgage applicants are assessed in terms of their rights to reside in the UK, and
whether they are currently living in the UK:
Living in the UK for more than 2 years, applicant is UK/EEA citizen or has Permanent Rights to Reside (PPR) - Standard
criteria applies
Living in the UK for less than 2 years, applicant is UK/EEA citizen or has Permanent Rights to Reside (PPR) - Maximum
90% LTV. Additional underwriter checks apply. All applicants will be asked to provide three months' bank statements and
three months' payslips showing salary paid in the UK to applicant's own bank account. Underwriters will be looking to
assess that the applicant intends to stay in the UK. Further documentation may be required to satisfy these checks.
Living in the UK for more than 2 years, applicant does not have Permanent Rights to Reside (PPR) - Maximum 90%
LTV. Additional underwriter checks apply. All applicants will be asked to provide three months' bank statements and
three months' payslips showing salary paid in the UK to applicant's own bank account. Underwriters will be looking to
assess that the applicant intends to stay in the UK. Further documentation may be required to satisfy these checks.
Living in the UK for less than 2 years, applicant does not have Permanent Rights to Reside (PPR) - Available for
Premier/Wealth qualifying customers. Maximum 75% LTV. Additional underwriter checks apply. All applicants will be
asked to provide three months' bank statements and three months' payslips showing salary paid in the UK to applicant's
own bank account. Underwriters will be looking to assess that the applicant intends to stay in the UK. Further
documentation may be required to satisfy these checks.
Maximum age at end of mortgage term:
Usually the maximum age at the end of the mortgage term should be 70 or retirement age – whichever is sooner. Where
the end of term date of the mortgage would be later than this for any applicant, applications will still be considered on an
individual basis. Full detail must be provided of how the borrower/s will fund the mortgage into retirement or beyond age
70 with documentary proof being submitted evidencing affordability for the full mortgage term.
To assist our underwriters documentary evidence to demonstrate serviceability into retirement must be provided.
Together with confirmation that you have discussed affordability into retirement and that your client is comfortable they
will be able to meet the mortgage repayments until the end of the mortgage term.
Note: Applications can be considered on a repayment or interest only basis where one or more applicant will be retired
(past normal retirement age) or aged over 70 at maturity of the mortgage, either where affordability requirements are met
by younger applicant/s or where customers can evidence their ability to repay the mortgage into retirement.
Buildings Insurance (please ensure that Buildings insurance is in place and that you have adequate cover).
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income
Based on Income > 0
4.49 + 4.49 or 4.49 joint
Based on Income > 60000
5 + 5 or 5 joint
Based on Income > 75000
5.5 + 5.5 or 5.5 joint
Min months in current position none
Min months in continuous service 3
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer
Outgoings
Refer to lenders Residential Requirements Tables on http://www.barclays.co.uk/intermediaries for details of
documentation which are required to support an application.
Allowable Gross Income - Child Tax Credits can be taken into consideration when calculating Income Multiples and
Affordability.
Bonuses should NOT be included in a customers' affordability.
Lenders disposable income figures are:
* A single applicant requires £551 per month
* Two or more applicants will require £715 per month
* Each dependant requires £121 per month
E.g. Based on these new figures a family of 2 adults and 2 children would require a disposable income of £957 per
month.
The Loan-to-Income (LTI) rules are as follows:
Capital & Interest Repayment where LTV is up to 85%. At least one applicant has a gross annual income of £75,000 or
greater or the two highest earning applicants have a combined gross annual income of £100,000 or greater* = 5.50x
Capital & Interest Repayment where the total combined gross annual income of the two highest earning applicants is
£60,000 or greater* = 5.00x
Interest only and ‘part & part’ where LTV is up to 80%. At least one applicant has a gross annual income of £75,000 or
greater or the two highest earning applicants have a combined gross annual income of £100,000 or greater* = 5.00x
*The income components considered when deciding if the minimum income threshold is met are: Basic income +
sustainable allowances + self-employed income.
Debt to income ratio of 20% or greater** OR LTV >90% (including Springboard) and the combined gross annual income
of the two highest earning applicants is up to £50k = 4.00x
**Debt to Income ratio is calculated as ‘monthly credit commitments after completion’ as a percentage of gross monthly
income
All other loan-to-value, loan size and income scenarios except those listed above = 4.49x
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Refer to lender
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 50% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income Add 100% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply
Adverse Credit
CCJs/Defaults : Accept:
1) Max 3 Defaults to a max of £200.00. These must be fully paid at least 36 months ago or over prior to application.
This condition does not incur any rate loading.
2) Max 1 CCJs to a max of £200.00. These must be fully paid at least 36 months ago or over prior to application. This
condition does not incur any rate loading.
Arrears : Not accepted.
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.
CCJ - 1 in 36 up to £200
Defaults - 3 in 36 up to £200
Any adverse credit identified, as detailed below, must be declined:
- Arrears of 3 or more months on any one account in the last 6 months
- Cumulative amount of arrears at any point in the last 2 years of 3 or more monthly payments on any one account, ie 3
or more instances of a late payment
- Applications can be considered where the adverse appears to be inconsistent or out of character when compared to
other Credit Account Information Sharing (CAIS) records or where documentary evidence of a settled dispute has been
provided by the customer
Mortgage or Rent Arrears
- If arrears of more than 1 month have occurred in the past 6 months, and/or 3 months arrears have occurred in the past
2 years, the case is outside lending policy and is to be declined. However, this decision could be changed if there is an
acceptable 'technical' reason, or if evidence of a settled dispute is provided and verified by the lender.
Lending to a customer with a history of bankruptcy OR who has been the subject of a Debt Relief Order (DRO) or an
Individual Voluntary Arrangement (IVA) can be considered provided any bankruptcy, DRO or IVA was registered more
than 6 years ago from the date of submission of any mortgage application and no longer shows on the credit reference
bureau information.
It is not acceptable to lend where we are aware that any applicant is currently bankrupt or subject to a DRO and/or IVA