Lending Policy

Our Lifetime mortgage is no longer available to new customers. Existing Lifetime mortgage customers are able to use the future release facility and can apply for a further advance,  transfer of mortgage property (TOMP) and porting for customers wishing to move home. 

Applicant Suitability

    • Minimum Age – 55 
    • Maximum Age – 85 
    • For joint applications, the minimum and maximum age limits apply to the younger applicant, therefore, the older applicant can be above the maximum age limit 
    • Maximum Applicants - 2 
    • Joint applicants can be Joint Tenants or Tenants in Common 
    • Minimum Borrowing - £30,000 
    • Maximum Borrowing - £1,500,000 (underwriter referral required for all borrowing above £750,000) 
    • Details of applicant income will be requested as part of the application keying process, however evidence of income will not be requested and monthly mortgage repayments do not apply 
    • Any additional occupants aged over 17 years living in the property and not named on the mortgage must sign a Consent to Mortgage form in all cases 
    • The property must be the applicant’s main residence. For joint applications, it must be the main residence for both parties 
    • Accept up to 2 lodgers  
      • A lodger is defined as a person who pays rent in return for accommodation in someone else's house, this will include sharing the kitchen, bathroom and communal areas
    • Tenants – unacceptable  
      • A tenant is defined as using the property as their primary residence, which is typically a self-contained unit and has legal protections under landlords-tenant laws usually via a tenancy agreement 
    • Any spouse/civil partner who is not an owner of the property, and therefore not a party to the lifetime mortgage, must have independent legal advice as to the nature and effect of the occupier waiver form/deed of consent. The legal adviser cannot be the same, or from the same firm, as the customer’s adviser 

Property Suitability

  • Where a property has more than five acres of land, the valuation will only include the first five acres. Any remaining land must not have any commercial / agricultural use.
     

    Acreage criteria

    Criteria

    Acceptable

    Criteria

    Property with over 20 acres of land (can refer for approval subject to no agricultural or commercial use) 

    Acceptable

    Consider

  • Commercial use criteria

    Criteria

    Acceptable

    Criteria

    Property intended for commercial purposes 

    Acceptable

    No

    Criteria

    Property incorporating generation/distribution apparatus e.g. substations, masts and gas pipelines which are deemed commercial in nature 

    Acceptable

    No

  • Environmental criteria

    Criteria

    Acceptable

    Criteria

    Flooded properties, including any outbuildings or garden land, which has flooded in the last 5 years where flood measures have since been completed  

    Acceptable

    Consider

    Criteria

    Properties where Japanese knotweed or other notifiable invasive plants are present and would be categorised as Royal Institute of Chartered Surveyors (RICS) Category 3 or above by the valuer 

    Acceptable

    Consider

    Criteria

    Property built on contaminated land 

    Acceptable

    No

    Criteria

    Where a property, including any outbuildings or garden land, is threatened by flooding or coastal erosion the property will be assessed for flood risk. If a property is assessed as being in a high-risk zone, it will be unacceptable 

    Acceptable

    No

  • Ground rent, Service Charge or Management fees criteria

    Criteria

    Acceptable

    Criteria

    Ground rent charge no greater than 0.1% of the estimated property value

    Acceptable

    Yes

    Criteria

    Annual service charge no greater than 1.5% of the estimated property value

    Acceptable

    Yes

    Criteria

    Where the annual service charge is between 1.5% – 2% of the estimated property value

    Acceptable

    Consider

    Criteria

    Property which has a service charge that exceeds 2% of property value 

    Acceptable

    No

    Criteria

    Properties that have an estate management fee and the applicants do not have a share in the management company 

    Acceptable

    No

  • Listed buildings criteria

    Criteria

    Acceptable

    Criteria

    Grade 2/Grade 2* and B/C Scotland 
    (must be detached property) 

    Acceptable

    Consider

    Criteria

    Grade 1/Grade A Listed Buildings

    Acceptable

    No

    • Property must be in good repair and suitable for lending 
    • Name(s) on Title Deeds must match applicant(s).  If these do not match at point of application, depending on the circumstances it may be acceptable for the solicitor to amend the deeds to match prior to/on completion 
    • Property subject to partial Title split is unacceptable 
    • Property subject to a trust is unacceptable 

    The Property must: 

    • Be unencumbered, or; 
    • If an existing mortgage is in place, or if any other lending is secured against the property, this must be paid off using the proceeds of the new Lifetime mortgage 
    • Owned by the applicant for at least 6 months, except where they inherited following the death of the previous owner or have had the property gifted 

    The Property must not: 

    • Have a second charge at completion. Property with a second charge e.g. Right to Buy, within pre-emption period, shared equity, shared ownership, not acceptable if the applicant does not intend to pay off the second charge using the Lifetime mortgage 
    • Be deemed unacceptable by a valuer due to major restrictions to saleability or significant structural problems 
    • Be subject to chancel liabilities (where the property owner has an obligation to contribute towards the maintenance and repair of the chancel of a local parish church) 
    • Be subject to manorial rights entries (legal rights whereby the lord of the manor may have certain rights to the property such as fishing, hunting, mineral, or the right to hold fairs and markets on the property) 
  • Property construction criteria

    Criteria

    Acceptable

    Criteria

    Standard Construction (bricks and mortar) 

    Acceptable

    Yes

    Criteria

    Properties subject to Modern Methods of Construction (MMC)

    Acceptable

    Consider

    Criteria

    Timber framed pre 1850 

    Only acceptable if substantial timber framed with masonry infill (but not single skin) 

    Acceptable

    Yes

    Criteria

    Poured concrete (e.g. Laing Easiform, Wimpey no-fines etc) Post 1945

    Acceptable

    Consider

    Criteria

    Mundic (A 1,2,3 Reports) 

    Acceptable

    Consider

    Criteria

    Steel framed or steel clad property built before 2000 

    Acceptable

    No

    Criteria

    Large panel system (LPS) e.g. Bison, Bryant wall-frame

    Acceptable

    No

    Criteria

    Pre-cast reinforced concrete e.g. Tarran pre-fabricated, Cornish unit, Cubbitt steel framed 

    Acceptable

    No

    Criteria

    System built concrete

    Acceptable

    No

    Criteria

    Cross wall construction 

    Acceptable

    No

    Criteria

    Vernacular construction materials e.g. Mundic concrete block or Norfolk clay lump

    Acceptable

    No

    Criteria

    100% timber construction e.g. Colt or Swedish timber 

    Acceptable

    No

    Criteria

    Timber framed property built between 1850 and 1965 

    Acceptable

    No

    Criteria

    Timber framed property with light weight cement render finish 

    Acceptable

    No

    Criteria

    Temporary style timber properties e.g. Canadian cedar wood, Norwegian log/timber frame, Colt or Swedish

    Acceptable

    No

    Criteria

    Property with single skin brickwork where the single skin (primarily 4 ½” brick) comprises more than approximately 20% of the surface area of the external walls

    Acceptable

    No

    Criteria

    Property currently undergoing substantial alterations, extensions, or repairs

    Acceptable

    No

    Criteria

    Property where underpinnings have taken place within the last three years 

    Acceptable

    No

  • Property construction roof criteria

    Criteria

    Acceptable

    Criteria

    Tile (concrete)

    Acceptable

    Yes

    Criteria

    Slate 

    Acceptable

    Yes

    Criteria

    Thatched – Detached Property

    Acceptable

    Consider

    Criteria

    Thatched – non detached property

    Acceptable

    No

    Criteria

    100% flat roof 

    Acceptable

    No

    Criteria

    Property with asbestos roof coverings or similar composition roof tiles

    Acceptable

    No

  • Property features criteria

    Criteria

    Acceptable

    Criteria

    Swimming Pool 

    Acceptable

    Consider

    Criteria

    Annex comprising 50% of property

    Acceptable

    No

    Criteria

    Annex occupied by non-family member 

    Acceptable

    No

    Criteria

    Annex having separate council tax band  

    Acceptable

    No

    Criteria

    Property with spray foam insulation applied to the underside of the roof

    Acceptable

    No

  • Property location criteria

    Criteria

    Acceptable

    Criteria

    Properties located in mainland England, Scotland and Wales 

    Acceptable

    Yes

    Criteria

    Scottish Islands 

    Acceptable

    Consider

    Criteria

    Properties located in Northern Ireland, Channel Islands and Isle of Man 

    Acceptable

    No

  • Property tenure criteria

    Criteria

    Acceptable

    Criteria

    Freehold

    Acceptable

    Yes

    Criteria

    Leasehold

    • The age of the youngest applicant + lease term = Greater than 180 years at the date of application 
    • The age of the youngest applicant + lease term = Between 170 and 180 years at the date of the offer 
    • The age of the youngest applicant + lease term = Less than 170 years at the date of the offer 

    Acceptable



    Yes

    Consider

    No

    Criteria

    Absolute Ownership

    Acceptable

    Yes

    Criteria

    Commonhold

    Acceptable

    No

  • Property types criteria

    Criteria

    Acceptable

    Criteria

    Flats

    Acceptable

    Accept

    Criteria

    Maisonette 

    Acceptable

    Accept

    Criteria

    Flats between 4-7 stories high 

    Acceptable

    Consider

    Criteria

    Flats more than 7 stories high 

    Acceptable

    No

    Criteria

    Flats with balcony access

    Acceptable

    No

    Criteria

    Flats that are not brick cladding

    Acceptable

    No

    Criteria

    Studio Flats 

    Acceptable

    No

    Criteria

    Freehold Flats 

    Acceptable

    No

    Criteria

    Caravans, crofted houses, park homes and log cabins

    Acceptable

    No

    Criteria

    Age restricted/ Sheltered Housing

    • Age restricted property e.g. retirement villages and sheltered housing with a value equal to or more than £200,000, 3+ years old and resale/exit fee less than 3% of property value

    Acceptable

    Consider

    Criteria

    New Builds or properties that have been converted in the last 10 years and have a warranty in place with the following warranty providers 

    • ABC+ 
    • Advantage HCI 
    • ARK Insurance 
    • Build Assure 
    • Build Warranty Group 
    • Building LifePlans Ltd (BLP) 
    • Buildzone 
    • Cadis 
    • Checkmate 
    • CIR 
    • Compariqo 
    • FMB Insurance 
    • Global Home Warranties 
    • HomeProof 
    • International Construction Warranties (ICW) 
    • NHBC 
    • One Guarantee 
    • Premier Guarantee - includes the LABC New Homes Warranty and LABC Hallmark Scheme 
    • Protek 
    • Q Assure Build 
    • Thomas Miller 

     

    Acceptable

    Yes

    • Minimum property value – £100,000   
    • £150,000 on ex-Local Authority, ex-Ministry of Defence and ex-Housing Association properties; £200,000 on Age Restricted Property/Sheltered Housing  
    • No maximum property value  
    • We will arrange for an independent valuer to carry out a physical inspection of the property. The purpose of this inspection is to provide a valuation for lending purposes only. There will be no cost to the applicant and the valuer’s decision will be final. 
  • Proximity criteria

    Criteria

    Acceptable

    Criteria

    Property having habitable space within 75m of pylons, over-head power cables or mobile phone masts 

    Acceptable

    No

    Criteria

    Property that may be impacted by major infrastructure projects 

    Acceptable

    No

    Criteria

    Close or adjacent to commercial properties / over commercial properties 

    Acceptable

    Consider

    Criteria

    Properties adjacent to Prisons, takeaway, petrol station, Betting shop, place where heavy machinery is stored, Adult shop, Dry cleaners/laundrette 

    Acceptable

    No

  • Roads/Driveways criteria

    Criteria

    Acceptable

    Criteria

    Property that is accessed via a long driveway that has not been maintained properly 

    Acceptable

    No

    Criteria

    Property that is accessed via a private road that has not been maintained properly 

    Acceptable

    No

    Criteria

    Property accessed via unadopted roads which are due for adoption by the Local Authority, unless there is a section 38 agreement in place (these are typically roads on modern estates) 

    Acceptable

    No

  • Solar Panels acceptable, however, must be installed with Microgeneration Certification Scheme. The conveyancers will check to ensure the lease provider is on our acceptable lease providers list.
     

    Utilities criteria

    Criteria

    Acceptable

    Criteria

    Property with solar farms and wind turbines which are not primarily for the use of the property itself (i.e. must not be commercial in nature) 

    Acceptable

    No

    Criteria

    Septic Tank/Cesspit (must not be shared) 

    Acceptable

    Consider

    Criteria

    Property served only by private water supply with no mains water supply 

    Acceptable

    No