Leeds 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.

Leeds mortgage lending criteria

Mortgage Advances

Up to £2,000,000

Notes

Illustration Type = ESIS.

Mortgage is Portable

Your loan is portable - this means if you move house and wish to transfer the loan to your new property you can, subject

to the Society's underwriting procedures and provided the property is adequate security for the mortgage. Please note

the following;

(1) Any conditions in the original Mortgage Offer relating to the payment of an Early Repayment Charge will continue to

apply

(2) If you borrow less money than your original borrowing an Early Repayment Charge will be payable in respect of the

amount you do not re-borrow. Paragraph (1) above will still apply to the amount you need to re-borrow

(3) If you need to borrow more money than your original borrowing the additional amount may have new product terms.

Again, paragraph (1) above will still apply to the amount you re-borrow

(4) Early Repayment Charges are waived on the death of a borrower.

COMPLETION DEADLINE 6 months.

- Mortgage is NOT for First time buyers

This product is available for interest only and interest only part & part applications.

Maximum interest only element is 60%.

THIS MORTGAGE IS VALID FOR 6 MONTHS

Max age is 70 or retirement

Lending into Retirement is not available on Interest Only, Shared Ownership or Shared Equity.

Builder/Vendor Gifted Deposits

It is acceptable for a builder/vendor to provide cashback or contribution towards the deposit, provided that:-

(i) the incentive is disclosed appropriately and

(ii) the value does not exceed 5% of the purchase price or valuation, whichever is the lower.

If the cashback/deposit is greater than 5%, the excess will be deducted from the price and our lending will be based on

the reduced value.

Irrespective of builder/vendor cashback/gifted deposit, the Society expects a personal contribution from the buyer of at

least 5% of the gross purchase price or valuation, whichever is the lower.

Please note: All incentives should be disclosed to the valuer as part of the application. The valuer will consider the total

property valuation recognising incentives; standard RICS process.

Additionally - All other 'non-cash' incentives continue to be accepted and should be declared appropriately.

All applicants and individuals residing in the property who are in a ‘relationship’ with the applicant (e.g. Partner, Spouse

etc.) must continue to be included in the affordability calculation.

All 'non relationship’ occupants fitting the below criteria can be excluded from the affordability calculation:

a) The 'non relationship’ occupier contributes to the household, through rent payments.

b) The 'non relationship’ occupier has independent income.

Where the above criteria is met, brokers must be satisfied that the 'non relationship' occupier is financially independent

and should reflect this in the notes provided. In addition, the following must be provided:

a) A completed ‘Declaration of Occupier’ form which can be found on our intermediary website:

http://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/intermediaries-forms-pdfs/declaration-of-occu

pier.pdf; or

b) A payslip no older than 3 months, showing the occupier to be financially independent and contributes to the

household, through rent payments.

Your loan is portable - this means if you move house and wish to transfer the loan to your new property you can, subject

to the Society's underwriting procedures and provided the property is adequate security for the mortgage. Please note

the following;

(1) Any conditions in the original Mortgage Offer relating to the payment of an Early Repayment Charge will continue to

apply

(2) If you borrow less money than your original borrowing an Early Repayment Charge will be payable in respect of the

amount you do not re-borrow. Paragraph (1) above will still apply to the amount you need to re-borrow

(3) If you need to borrow more money than your original borrowing the additional amount may have new product terms.

Again, paragraph (1) above will still apply to the amount you re-borrow

(4) Early Repayment Charges are waived on the death of a borrower.

The Society will make a one-off contribution towards the cost of a Basic Valuation. The maximum contribution will be

£999 and the amount depends upon the value of your property. If you choose to have a Homebuyers Survey or a

Building Survey, the Society will deduct the equivalent cost of a Basic Valuation from this total and you will need to pay

the difference. Please see section 8 for the amount you will need to pay. The incentive excludes second or subsequent

valuations and specialists reports.

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.

In accessing the application, the Society uses credit scoring and in addition would accept:

A maximum of 1 missed payment in the last 12 months.

No more than 2 months arrears on any credit agreement in last 24 months.

Arrangements on any agreement within the last 2 years.

No previous property taken into possession within the last 6 years.

Capital Rest Period : Daily

Repayment Types

Repayment No

Endowment refer

PEP refer

Pension refer

Interest only (no RV) no

With Profits refer

Unit Linked refer

ISA refer

Split Repayment refer

Fees

Arrangement : £varies Can be Added

Booking : None

Early Repayment Charges

varies, 10% capital repayments allowed

per year without penalty

Higher Lending

None

Valuation

Basic:

Free

Homebuyers:

up to £50,000 - £330

up to £100,000 - £420

up to £150,000 - £500

up to £200,000 - £550

up to £250,000 - £630

up to £300,000 - £740

up to £350,000 - £850

up to £400,000 - £960

up to £500,000 - £1150

up to £600,000 - £1400

up to £700,000 - £1500

up to £800,000 - £1650

up to £900,000 - £1750

up to £1,000,000 - £1950

up to £2,000,000 - £2250

Min Valuation £50000

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.

Fees may be added to the loan subject to the overall loan not exceeding the Society Maximum Loan to Value of 95%

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.

Funds Transfer Fee - £35.00 Payable on completion.

Mortgage Exit 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 Yes

Listed Building Yes

Right to Buy

Not Accepted

New Build acceptable. The maximum loan to value for new build houses is 90% and the maximum loan to value on new

build apartments is 80%.

Leeds Building Society will accept mortgage applications for properties which have a Section 106 restriction in place

The types of Section 106 restriction that the Society will consider as follows:

Salary restrictions (typically Affordable Housing/Discounted Housing Schemes)

Local living restrictions (typically Local Ownership Schemes)

A combination of the above

Acceptance is subject to one (or more) of the following:

A cascade mechanism is in place that commences after a maximum of 3 months from the date of possession, with no

restriction of any kind after 6 months; OR

A Mortgagee Exclusion Clause applies immediately upon possession and will continue in force for successors in title to

the mortgagee ensuring that all successors also take free from the relevant restrictions; OR

The restriction only applies to the first transaction (i.e. the initial purchase transaction) and is subsequently dis-applied to

any future transactions.

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

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:

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

Minimum floor area for apartments and conversions is 28m square.

Studio flats are accepted with the following conditions:

The minimum internal floor area must be 30sq metres.

Self-contained with a separate bathroom is required.

Natural light is required.

Basement studio flats are not acceptable.

Previous amendments to policy to allow acceptance of properties with a Section 106, subject to conditions, now

extended to properties in Scotland covered by a Section 75 Planning Obligations.

See Broker guidance for full conditions for restricted covenants.

Flats over 4 storeys are accepted as long as the property has a lift.

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

Min Loan

Max Loan £2,000,000

Max Portfolio of BTL Loans none

Min Age 18 years

Max Age 70 years

Min Term 5 years

Max Term 40 years

Up to 60% of the value of the property can be borrowed on Interest Only.

Customers can borrow up to an additional 15% on Repayment, taking total borrowing up to 75% LTV.

The combination of Interest Only and Repayment is the customers choice, but the Interest Only element cannot exceed

60% LTV.

Where sale of the mortgaged property is the intended repayment strategy, the Society will conduct a plausibility check to

ensure sufficient equity exists at the end of the mortgage term for a downsizing option. The requirement for ‘£150k equity

at end of term’ will be removed. Details of the intended downsizing property type and location (postcode, town, region),

should be declared using the free text fields within the AIP process.

THIS MORTGAGE IS VALID FOR 6 MONTHS

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.

These products also support customers where 'Sale of Property' is the intended repayment vehicle.

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.

Builder/Vendor Gifted Deposits

It is acceptable for a builder/vendor to provide cashback or contribution towards the deposit, provided that:-

(i) the incentive is disclosed appropriately and

(ii) the value does not exceed 5% of the purchase price or valuation, whichever is the lower.

If the cashback/deposit is greater than 5%, the excess will be deducted from the price and our lending will be based on

the reduced value.

Irrespective of builder/vendor cashback/gifted deposit, the Society expects a personal contribution from the buyer of at

least 5% of the gross purchase price or valuation, whichever is the lower.

Please note: All incentives should be disclosed to the valuer as part of the application. The valuer will consider the total

property valuation recognising incentives; standard RICS process.

Additionally - All other 'non-cash' incentives continue to be accepted and should be declared appropriately.

Up to three repayment strategies can be used to cover the value of the Interest Only element.

Repayment strategies must be in pounds Sterling.

Stocks & Shares should be in FTSE 100 / 250 Companies, with a minimum of 3 companies in portfolio.

Sale of 'other' properties is an acceptable repayment strategy.

All applicants and individuals residing in the property who are in a ‘relationship’ with the applicant (e.g. Partner, Spouse

etc.) must continue to be included in the affordability calculation.

All 'non relationship’ occupants fitting the below criteria can be excluded from the affordability calculation:

a) The 'non relationship’ occupier contributes to the household, through rent payments.

b) The 'non relationship’ occupier has independent income.

Where the above criteria is met, brokers must be satisfied that the 'non relationship' occupier is financially independent

and should reflect this in the notes provided. In addition, the following must be provided:

a) A completed ‘Declaration of Occupier’ form which can be found on our intermediary website:

http://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/intermediaries-forms-pdfs/declaration-of-occu

pier.pdf; or

b) A payslip no older than 3 months, showing the occupier to be financially independent and contributes to the

household, through rent payments.

Applicants must usually: -

Be a UK tax payer paid in Pounds sterling.

Have resided in the UK for a minimum of 2 years, or

Are a UK national in service abroad with HM Forces or, who are employed abroad by a UK based internationally known

employer

For non-UK Nationals, a valid EU passport should be provided. For non-EU Nationals, the applicants permanent right to

reside should be evidenced and confirmed.

Key Contractor Criteria points:

Must have continual contracting history for 12 months in same discipline (e.g. IT).

Minimum gross annual income of £50,000 - See guidance for how to calculate.

Must evidence ability to re-contract within discipline.

Period between contracts must not exceed 6 weeks in each instance.

Maximum LTV of 85%.

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

Foreign Citizens Not Accepted

Ex-Patriates Not Accepted

Income

Based on Income > 0

4.75 + 0 or 4.75 joint < 85% LTV

4.5 + 0 or 4.5 joint < 95% LTV

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’s maximum LTIs are as follows:

· Up to 4.75 times household income for home-movers and re-mortgages up to 85% LTV, or

· Up to 4.5 times household income for first time buyers or if the LTV is greater than 85% LTV.

All income for affordability must be evidenced and be in Pounds sterling

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 or total balances over £1,000

100% of Working Family Tax Credits (not the child tax element)

Maintenance payments must be payable for the term of the mortgage

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.

Self Employed (including Sole Traders & Partnership:

When using 3 years accounts use the average of the last 3 years figures.

When using 2 years accounts, due to the length of trading, use the average of the 2 years figures.

Continuously falling profits, year-on-year, are not acceptable.

The affordability assessment will be based on the average profitability over the period for which financial accounts are

provided.

The maximum amount of other allowable income must not exceed 100% of the household primary income.

Trading 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.

Certified Public Accountants Association

Chartered Institute of Management Accountants.

Chartered Institute of Public Finance Accountants.

Association of Authorised Public Accountants.

Association of International Accountants

Chartered Institute of Taxation

Association of Accounting Technicians

Institute of Financial Accountants

Association of Taxation Technicians

For self employed application, the Society will accept SA302s when accompanied by the Tax-year overview document to

verify income

Directors of Limited Companies (including Limited Partnerships / LLPs):

Where a Director owns less than 25% of the shares in a limited company, the individual will be assessed as employed

with affordability based on payslips (salary), dividends, etc. In this instance, the customer is not required to provide

financial accounts.

However, where the shareholding is 25% or more, the individual will be assessed as Self Employed and whilst

affordability will be based on the Director’s salary and dividends received full financial accounts are required for

underwriting (see Self Employed).

The Society will consider up to 100% of the Support Group element from Employment and Support Allowance, replacing

Support Group Disability Allowance.

Use of annual bonus requires 3 years P60's

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 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 Max LTV Max% increase

Remortgage Not Available

Adverse Credit

CCJs/Defaults : Accept:

1) Max 1 CCJs/Defaults to a max of £500.00. These must be fully paid. This condition does not incur any rate loading.

Arrears : Accept:

1) Max 1 missed payment 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 : Ignore Repossessions 72 months ago or over.Repossessions settled 72 months ago or

over will be accepted, and do not incurr any rate loading.

County Court Judgements and Defaults: Maximum of one County Court Judgement (CCJ) or default in the last four

years, which must have been satisfied within 3 months of issue and no greater than £500 in value. Unsatisfied County

Court Judgements and defaults are not acceptable.

Credit Score / Credit Search: A credit search will be carried out by the Society, using an approved Credit R8eference

Agency. Underwriters have the discretion to request additional information in order to support the application.

In assessing the application, the Society uses credit scoring and in addition would expect:

A maximum of 1 missed mortgage payments in the last 12 months.

No more than 2 months arrears on any credit agreement in the last 24 months.

No arrangement on any arrangement within the last two years.

No previous property taken into possession within the last 6 years.