Lending criteria

See the RIO and PTLM Lending Standards

For RIO and PTLM, we are unable to consider applications where the applicant has:

• Unsecured credit with more than one missed payment in the last 12 months, or more than two in the last 24 months
• A mortgage, secured loan or tenancy with one or more missed payments in the last 12 months, or two or more in the last 24 months.

Applicants must be up to date with all credit commitments. 

We carry out credit and electoral roll searches for every applicant, including a three-year address-history check.

CCJs (RIO / PTLM)

For RIO and PTLM, we are unable to consider applications where the applicant has: 

• any unsatisfied County Court Judgment (CCJ)
• a satisfied CCJ registered within the last 36 months
• more than two satisfied CCJs, or 
• satisfied CCJs totalling more than £500.

We check each applicant’s address history.

CCJs (IRLM / OPLM)

• Satisfied CCJs are disregarded
• Unsatisfied CCJs do not need to be repaid
• The same CCJ held by joint applicants counts as one CCJ. 

Defaults

For PTLM and RIO, we are unable to consider applications where the applicant has: 

• any outstanding default; 
• satisfied defaults totalling more than £150, where the most recent was registered within the last 36 months, or 
• more than one satisfied default, where the most recent was registered within the last 36 months.

Bankruptcy / Sequestration

For PTLM and RIO, bankruptcy, or sequestration must have been discharged or satisfied for at least 72 months. 

For IRLM and OPLM, the bankruptcy or sequestration must be discharged or satisfied before the application.

Current arrears

For PTLM and RIO, we are unable to consider applications if any payment is currently overdue on any credit commitment.

IVA / trust deed / DMP

For PTLM and RIO, an IVA, trust deed or Debt Management Plan must have been satisfied for at least 72 months, with no further adverse credit since it was satisfied.

For IRLM and OPLM, IVA must be discharged or satisfied before the application.

Repossession

For PTLM and RIO, decline if the applicant has had a property repossessed within the last 72 months.

Payday / home credit loans

For PTLM and RIO, we are unable to consider applications where the applicant has taken out a payday loan or home credit loan.

Decline unless the conviction is spent under the Rehabilitation of Offenders 1974 Act.

Minor driving offences are excluded.

See our online Guide to Customer ID and Income Verification Requirements and Guide to Document Requirements

The loan will be used to pay the departing spouse’s share following divorce or separation.

Our conveyancer must receive confirmation that the final financial settlement ended the departing owner’s interest in the property.

Lifetime Mortgages: an unmarried partner may live in the property if they receive independent legal advice and sign a Deed of Consent. 

RIO: an unmarried partner must be added to the title and the mortgage.

Any ownership split is acceptable for tenants in common.

If one joint borrower dies, the survivor cannot use the drawdown facility until the title has been transferred into their sole name.

Evidence can include: 

• a passport showing a right to reside
• an eVisa or digital status
• a No Time Limit endorsement
• Biometric Residence Permit
• an EU Settlement Scheme share code. 

Any occupier who will be over 17 at completion and is not a borrower must receive independent legal advice and sign a Deed of Consent. This postpones any rights or interest they may have in the property.

Each lodger must: 

• occupy no more than one room
• share the property’s facilities and services with the applicant
• not live in a separate annexe, and 
• not have their own kitchen.

Any occupier who will be over 17 at completion and is not a borrower must receive independent legal advice and sign a Deed of Consent.

The move must be permanent and for the purpose of receiving care.

We accept: 

• an Enduring Power of Attorney for England and Wales
• a Property and Financial Affairs Lasting Power of Attorney for England and Wales
• a Combined Power of Attorney for Scotland, or
• a Continuing Power of Attorney for Scotland.

We accept an application made under a Power of Attorney where the applicant has lost mental capacity. 

For joint applicants, one applicant cannot act as attorney for the other. A separate attorney is required. Each attorney must meet our identity and residency requirements.  

Sole applicants: The loan must be for the sole benefit of the applicant.  

Joint applicants: Where one applicant has lost capacity, the loan must benefit that applicant. Where both applicants have lost capacity, the loan must benefit both.

Adjoining land

If access to the property crosses adjoining land: 

• Land not owned by the applicant: our conveyancer must confirm that there are no access restrictions
• Land owned by the applicant under a separate title: our legal charge must also cover that land.

Title ownership

Every registered owner shown on the title must be a party to the mortgage.

If a third party is being removed from the title, they must receive independent legal advice.

If they will receive less than the full value of their interest, a transfer-at-undervalue indemnity policy is required. We do not accept consent forms instead of this policy. 

Pre-emption at market value

We are unable to consider applications if unexpired pre-emption rights apply.

Subject to all other criteria, we accept: 

• England and Wales: freehold houses, leasehold houses, leasehold flats, and flying freeholds of less than 15% of the total floor area
• Scotland: houses and flats held under outright or absolute ownership with a heritable title. 

We can consider a property with an annexe only where all of the following apply: 

• The Annex forms part of the main legal title 
• It may share a Council Tax band or have its own band, subject to valuation and all other criteria
• It has no separate services
• It shares access with the main property
• Its footprint is less than 50% of the main property’s footprint
• At completion, it is empty, occupied by no more than two family members, or occupied by a contracted live-in carer
• Every occupier signs a Deed of Consent

We are unable to consider if the annexe: 

• has separate services or a separate legal title
• does not meet the access, layout or size rules
• is occupied or sublet by non-family members, or 
• is used for short-term letting, including Airbnb or Vrbo.

We can accept limited business use where all of the following apply: 

• The property remains a private residence
• The applicant exclusively uses the commercial element within the property for their own business
• The valuer must be able to value the property as a home and ignore the business use
• There have been no permanent business alterations to the property, such as a commercial kitchen, purpose-built treatment rooms or workshop machinery
• Any business items, such as desks, chairs, storage or small IT equipment, are temporary or easy and inexpensive to remove. 

The valuer must be aware of the business use when instructed.

Check whether a business or mixed use is registered at the property.

Bed and breakfast

We can accept a bed and breakfast if the property has not been adapted for business use, for example by adding a bar.

It must not need any license, local authority approval or rating beyond what a normal home requires.

Steel framed

We can consider Steel-framed properties built after 2001.

Steel framed pre 2021

We are unable to consider steel-framed properties built before 2001 and all steel-clad properties.

We can consider Wimpey No-Fines construction and properties with a Category A1 Mundic report.

We are unable to consider: 

• High Alumina Cement construction 
• Prefabricated Reinforced Concrete properties, including repaired properties or those where the panels have been removed, or 
• Large Panel System construction. 

Traditional construction

We can consider traditional construction. 

This normally includes brick or stone walls, cavity or solid masonry, tiled, slate or felt roofs, and timber upper floors.

Single-skin walls

A single-skin wall has one layer of brick or block and is less than 225 mm thick. 

We can consider limited single-skin construction only where: 

• it is no more than 20% of the total external wall area
• there is no structural weakness or damp
• any upper-floor section is structurally sound, and the roof is securely tied to the walls, and 
• the valuer confirms that saleability and mortgageability are not affected.

Herringbone brick and wattle-and-daub infill within oak framing are not treated as single-skin construction and are assessed separately.

We can consider: 

• Studios with a minimum internal measurement of 30m² and/or without its own bathroom and kitchen, the kitchen can be in the same room
• Properties located in a building made up of no more than 5 storeys, with or without a lift
• Properties located in a building made up of more than 5 storeys but less than 10 storeys with a lift.

Storeys are considered as levels above ground – 2 storey building would consist of a ground floor and first floor. 

• All flats in the building must be leasehold 
• Block buildings insurance must be in place
• The valuer must confirm satisfactory condition, saleability and market demand.

We may can consider 

• Properties located in a building made up of more than 5 storeys, without a lift where the property is located on or below the 3rd Floor 
• Properties located in a building made up of more than 10 storeys with a lift, where the property is located on or below the 10th Floor.

Storeys are considered as levels above ground – 2 storey building would consist of a ground floor and first floor. 

• All flats in the building must be leasehold
• Block buildings insurance must be in place
• The valuer must confirm satisfactory condition, saleability and market demand.

We are unable to consider;

• Properties located in a building made up of more than 5 storeys, without a lift where the property is located on or above the 4th Floor
• Properties located in a building made up of more than 10 storeys if the property is considered as an ex-Local Authority Property
• Freehold flats
• Bedsits
• The applicant and their family members own other flats in the same building
• Ex-local authority, ex-Housing Association or ex-MOD properties where pre-emption rules have not expired.

We are unable to consider applications, regardless of the current or future flood rating, if our valuer: 

• makes an adverse comment about flooding 
• confirms flooding within the last five years
• confirms that standard buildings insurance is not available, or 
• confirms that future saleability may be affected. 

The application remains subject to underwriting and valuation. 

Suitable buildings insurance must be available on standard terms. 

We do not lend in Northern Ireland, the Isles of Scilly, the Isle of Man, the Channel Islands or other islands. 

We can consider

• Grade 2 in England and Wales
• Grade C in Scotland.

We may consider

• Grade 2* in England and Wales
•  Grade B in Scotland.

We are unable to consider

• Grade I Listed Buildings in England and Wales
• Category A Listed Buildings in Scotland.

A property built within the last 10 years must have a warranty from one of these providers;

• ABC+ Warranty
• Advantage HCI
• Ark Insurance Group
• Build Assure
• Building Life Plans Ltd
• Buildzone
• Cadis
• Checkmate
• Global Home Warranties
• Homeproof (formally known as Aedis)
• International Construction Warranties (ICW)
• NHBC
• One Guarantee
• Premier Guarantee (including LABC Hallmark and LABC New Home Warranties)
• Protek
• Q Assure Build Ltd

Minimum property value

• £70,000 and over for houses and bungalows
• £100,000 for flats, maisonettes, ex-council, ex-housing association or ex-Ministry of Defence properties.

Maximum property value

No maximum.

We are unable to consider applications where the property is in a poor state of repair, needs full refurbishment, or the valuer considers its condition will adversely affect saleability.

We can consider applications for the following retirement villages only:

• Austin Heath, Warwick, Warwickshire
• Gifford Lea, Tattenhall, Cheshire
• Great Alne Park, Maudslay, Warwickshire
• Milbrook Village, Exeter, Devon
• Durrants Village, Faygate, West Sussex

We are unable to consider if the applicant is not or will not be the first owner of the property. 

Consider

We can consider standard construction;  

• Pitched or flat roofs constructed using tiles, slate, or felt 
• Properties originally built with a flat roof
• Properties with a flat roof where more than 50% of the roof area forms part of an extension.

We can consider applications for  properties with a  septic tank subject to confirmation that:

• the tank is maintained to the 2020 standards
• the number of properties sharing it is known, and
• a maintenance agreement is in place if it is shared. 

We can consider properties where the total annual service charge, ground rent and sinking-fund contribution does not exceed 2.5% of the property value. 

Ground rent must not exceed £250 a year, or £1,000 a year in Greater London.

Also see Tenure criteria

Present

We are unable to consider applications where spray foam was added after the property was built and is still present.

Installed during construction

We can consider Spray foam installed during construction subject to the Spray foam:

• not being applied to structural timbers, including rafters and purlins
• being BBA approved
• having a full guarantee
• having all required Building Regulations certificates, and 
• not being excluded by any applicable new-build warranty.  

Removed

We can consider properties where spray foam added after construction has been removed, including any residual foam, only if all the following requirements are met:. 

• full professional removal by a Property Care Association member or similar contractor
• a roof-specific report from a structural engineer or chartered building surveyor confirming that the roof and coverings are structurally sound, paid for by the applicant
• completion of all repairs before application
• all required statutory consents and Building Control completion certificates, and 
• a Building Control completion certificate if the roof has been replaced or re-covered.

We may consider historic structural movement where: 

• the valuer confirms it is not continuing or progressive
• any underpinning was completed more than five years ago
• there is no further movement; 
• available Building Regulations approval, Building Control sign-off and contractor guarantee, warranty or defect insurance are provided for review, and 
• buildings insurance is available on standard terms.