Scottish Widows 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.

Scottish Widows mortgage lending criteria

Mortgage Advances

Up to £1,000,000

Notes

Illustration Type = ESIS.

Mortgage is Portable, Mortgage is Flexible, 10% Overpayments allowed per year.

This mortgage product is portable. The loan on your new house will be subject to our normal lending criteria.

If you move house and port rates during the period in which Early Repayment Charges apply, Scottish Widows Bank will

refund these charges, however, a proportion of the Early Repayment Charges will be payable if a lower loan amount is

required for the new property.

*Remortgage package not available in Northern Ireland, instead a contribution of £300 will be made towards legal

fees.**

If the loan amount is over £1 million it will be referred directly to Scottish Widows Bank credit team.

For residential borrowing with Buy to Let Properties, we will consider each case on an individual basis. Please refer to

lender for further details.

We no longer publish Salary Multiples. All applications are assessed on individual circumstances where affordability must

be clearly demonstrated.

Please note a Personal Loan is not acceptable as a Source of Deposits.

Interest Only Repayment Plans:

All Interest Only products (including part and part), will require evidence of a Repayment Plan.

Repayment Method:

All borrowing over 75% LTV must be on a Repayment basis.

Borrowing over a £1m is available up to a maximum of £1m on Interest Only with the remainder of the mortgage on

Capital & Interest.

Linked Savings/Offset Account.

Offset Saver Account Options

Option 1 - Reduced term

If you choose this option, your monthly mortgage payments will always stay the same – subject to changes in interest

rates. However, because the savings in your Offset Saver Account are offsetting against your mortgage, more of the

monthly repayment is used to pay back the balance of your mortgage – which makes it possible for you to pay off the

mortgage sooner. And you could save thousands in interest payments too.

Option 2 - Reduced payments

If you choose this option, your monthly mortgage payment could be reduced, giving you more disposable income. This is

because the savings in your clients Offset Saver Account are used to reduce how much they would normally pay each

month. The term of their mortgage remains the same and the client could save thousands in interest payments too.

One overpayment per mortgage year of up to 10% of the outstanding loan balance may be made without penalty. Once

the overpayment has cleared it will reduce the amount of interest you will be charged. Any further overpayments during

that mortgage year will be subject to an early repayment charge (please refer to the early repayment charges section) of

the extra amount repaid. Following the expiry of your fixed rate, there are no restrictions on making overpayments to this

loan.

Capital Rest Period : Daily

Repayment Types

Repayment Yes

Endowment 75% LTV

PEP 75% LTV

Pension 75% LTV

Interest only (no RV) No

With Profits 75% LTV

Unit Linked 75% LTV

ISA 75% LTV

Split Repayment 75% LTV

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:

up to £10,000,000 - £100

Valuer will contact client to collect valuation fee before inspection is carried out.

All applications for capital raising on an unencumbered property will be eligible for a free property assessment, so no

valuation fee will be charged, and the customer has the option of using our free legal service using our panel of

conveyancers. Products will continue to be available from the remortgage range and the maximum loan to value when

capital raising is 85%.

Any mention of 'year' in the ERC section equates to 12 monthly payments.

Applicant has the option of adding the Arrangement/Booking Fee to the loan or paying upfront.

Redemption Fee (added to loan on redemption of the mortgage) £195.

Valuation Fee for purchase is flat fee of £200

Lender Conveyancing Fee - £175.00 Payable on completion. Fee payable to your solicitor for acting on behalf of Scottish

Widows Bank. The fee amount quoted is an estimate and covers only part of the cost of the legal work that you may

need to pay. Ask your solicitor for details.

Acceptable Property Types

Freehold Flat No

Purpose Built Flat Yes

Converted Flat Refer

Flat Over Shop Refer

Maisonette Yes

Studio Flat Refer

Flying Freehold Yes

Thatched Refer

Timber Framed Refer

Concrete Refer

Agricultural Tie No

Flat Over 4 Storeys Yes

Listed Building Yes

Right to Buy

Not Accepted

New Build acceptable. Houses/Flats/Conversion Flats (new build properties are defined as any property mortgaged

within six months of the first time it has been occupied, and includes newly converted properties). Maximum 85% LTV on

new build properties (Subject to the valuer taking incentives into account).

Property is considered to be New Build if was constructed within less then 24 months.

Incentives on new build properties: Some builders offer cash incentives to help market their properties, These may

include but are not limited to deposit contributions, cash- backs, contribution to legal fees and stamp duty, moving costs,

mortgage subsidies.

It is important the valuer is made aware of any incentives as these will be taken into account when determining the value

of the property.

Cash incentives up to 5% of the property value are acceptable provided:

· We are made aware of the value of any cash incentive at the time off the mortgage application is made.

- The loan and cash incentive together are not greater than 5% above the maximum loan to value limit. Where this figure

will be exceeded the loan amount must be reduced accordingly.

- Cash incentives greater than 5% of the property value will only be acceptable where the customer is contributing more

than the minimum personal deposit and the above requirements are met.

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 No

Insurance

Buildings Conditional

Conditions

Min Loan

Max Loan £1,000,000

Max Portfolio of BTL Loans none

Min Age 18 years

Max Age 80 years

Min Term 5 years

Max Term 40 years

If borrowing exceeds £1m this product may be available with more than one product fee payable. Please contact SWB to

find out more about lending over £1m

Bank Statements 1 months certified copy. If Foreign National 3 months required.

Foreign nationals have to be in the UK for minimum period of 12 months to be considered. Thereafter, LTVs are

dependent upon length of time in the UK. Self employed or contractors are required to have been resident in UK for

greater than 60 months to be considered. Nationality of the applicant(s) - will be verified by the Intermediary, who will

provide us with a certified copy of the documentation. The Intermediary may use the applicants’ passport to confirm both

nationality and the date of entry into UK(if appropriate).

The minimum requirement of 12 months in UK– can be evidenced from the following sources, through the Experian

bureau data, or from the employment reference.

Permanent Employment status will be evidenced from the employment reference.

For Residential Mortgages:

Self Employed - In addition to banks statements we require a SA302.

Employed - In addition to banks statements we may contact your employer for a reference.

For split loans the term on the interest only and repayment element must be the same.

Max age is 80 years, For all new applications, including mortgage, further advance and product transfers, we're

increasing the maximum age at the end of the mortgage term to 80. The term must end before the applicants 80th

birthday. For joint applications, the rule will continue to apply to the oldest customer.

Any borrowing extending beyond retirement age will continue to require evidence of anticipated retirement income

following the existing process.

Max term 40 years or expected retirement age, whichever is earlier.

Existing customers will not be considered for a Further Advance until 6 months have elapsed since completion of the

original mortgage.

You can apply for a Further Advance of £5,000 or more (subject to assessment).

If a vendor gifted deposit is received this will be used to reduce the purchase price.

Foreign Citizens accepted subject to criteria.

The term for Interest Only mortgages must finish before customers age of 70 years. For pension and bonus repayment

plan types the existing rules that would restrict the term further based on a lower anticipated retirement age continues to

apply.

Capital & Interest mortgages are unchanged and continue to allow up to a max age of 80 years.

Minimum joint/sole income of £50,000 required if the customers repayment vehicle is; endowment, investments (see

website for details), pension, sale of 2nd property.

The other repayment vehicles (bonus, cash, sale of mortgaged property) already have a minimum income of £100,000

sole and £150,000 joint and these are unchanged.

Minimum equity where Sale of Mortgaged Property is the repayment vehicle is increased from £200,000 to £400,000.

Buildings insurance is a condition of this mortgage.

Foreign Citizens Accepted

Ex-Patriates Not Accepted

Income

Based on Income > 0

5 + 1 or 5 joint

Min months in current position none

Min months in continuous service none

Min no. of years accounts 3

Average years taken to calculate income 3

Will consider declining profit Yes

Outgoings

Self-employed income is averaged over 3 years. If only 2 years self-employed income data is available, please add ‘1’ to

the third year. Please contact us for further information.

Loans above £750,000 up to 75% LTV

Loans up to £750,000 up to 85% LTV

Loans up to £500,000 if your clients income is between £50,000 and

£75,000 up to 75% LTV

The max loan size cap of £500k is being extended to create two new

segments (£500k-£750k, and >£750k)

Where the LTI shown below exceeds 4.49x, this may be reduced

depending on the result of the credit score

INCOME MULTIPLES FOR LOANS OVER £500,000

Up to 75% LTV - 4.49x

75.01-90% LTV - 4.00x

INCOME MULTIPLES FOR LOANS £500,000 - £750,000

Up to 75% LTV = 5.00x

75.01-85% LTV = 5.00x

85.01-90% LTV = 4.00x

INCOME MULTIPLES FOR LOANS OVER £750,000

Up to 75% LTV = 5.00x

75.01-85% LTV = 4.00x

85.01-90% LTV = n/a

100% shift allowance accepted.

Minimum trading period is 36 months.

Income used to calculate the above minimum requirements are unchanged and include; basic, bonus, overtime,

commission and for self-employed clients the figure keyed as ‘net profit’ for the latest year.

(ALL APPLICATIONS ARE SUBJECT TO INDIVIDUAL ASSESSMENT AND EACH WILL BE CONSIDERED ON ITS

OWN MERITS)

Income should be received in sterling.

Hire Purchase Taken into account

Personal Loans Taken into account

Overdraft Taken into account

Credit/Store Cards Taken into account

Child Maintenance Taken into account

Child Education Taken into account

Extra Income:-

Other Income - Guaranteed Add 30% to income before multiply

Other Income - Regular Add 30% to income before multiply

Other Income - Irregular No

Investment Income No

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 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 : Not Acceptable

Defaults : Refer to lender

Arrears : Refer to lender

Bankrupt : Acceptable, min months Discharged 72

Current IVA : Refer to lender

Repossession : Not Acceptable

- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be

judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into

account his/her existing liabilities.

- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.

- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling

Arrears and Possessions, including :

a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears,

consistent with both your interests and the Lender.

b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with

you have been unsuccessful.