Use our handy criteria tool to search for all the information you need for your Older Borrower cases. If you’d prefer a printed version, you can download a PDF copy of our Older Borrower criteria here.
Last updated 10 June 2021.
The Stamp Duty incentive has been extended. This means that your clients now have until 30 June 2021 to complete their purchase of a property up to the value of £500,000 without paying Stamp Duty.
To smooth the transition back to normal thresholds, the nil rate band will then apply to properties up to the value of £250,000 until 30 September 2021, before returning to £125,000 on 1 October 2021.
Your client needs to ensure there is sufficient time for their conveyancer to complete all the legal work required to enable their mortgage application to complete before the incentive is withdrawn, or the thresholds change in line with the dates above.
It is in their own interest to instruct their conveyancer at the earliest opportunity so that they are in the best position to meet these deadlines. Please note that any costs incurred for starting the legal process early will need to be met by your client if the case does not progress to completion.
It is important to note that if their application does not complete by the dates outlined above, they will be liable to pay any Stamp Duty related to their purchase.
Maximum Mortgage Term Guidelines
Maximum Mortgage Term Guidelines
Age* Term 55 27 56 26 57 26 58 25 59 24 60 23 61 22 62 21 63 21 64 20 65 19 66 18 67 17 68 17 69 16 70 15 Age* Term 71 14 72 14 73 13 74 12 75 11 76 11 77 10 78 10 79 9 80 8 81 8 82 7 83 7 84 6 85 5
Subject to minimum product term and maximum term of 27 years.
*Age of oldest borrower.
Source: Based on 2018 ONS Cohort Life Expectancy Tables based expectation of life, 1981-2064 principal projection, England and Wales.
Guidelines subject to review in December each year based on the age attained in the following year an bi-annual update of Cohort Life Expectancy Tables.
CCJs & Defaults
CCJ’s/Defaults within the last 3 years are not acceptable.
CCJ’s/Defaults => 3 years prior to application are acceptable up to a maximum £2,500, subject to an explanation and being cleared/satisfied 12 months prior to application.
No other adverse entries must show on credit file.
Mortgage, Loan and HP arrears & missed payments => 3 years prior to application, status 1’s and 2’s are accepted –status 3 or above not accepted.
Mortgage, Loan, HP arrears and missed payments within the last 3 years are not acceptable.
Credit Card, Mail Order, Utility commitments => 3 years prior to application –Up to and including status 2’s are acceptable.
Credit Card, Mail Order, Utility <3 years prior to application –Status 2 –OK to proceed subject to the commitment being up to date for a minimum of 12 months prior to application. =< Status 3 are ok subject to commitments totalling less than £500 and being up to date for a minimum of 12 months prior to application.
For non-UK nationals we require the applicant(s) to have resided in the UK for a minimum of 2 years. We will also require proof of indefinite leave to remain/residence certificate, or settled or pre-settled status in the UK.
Applicants’ own deposit or gift from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild) is acceptable. Evidence of the source of deposit is required.
100% State and/or Private Pension income. We will accept 5% of SIPP/pension pot for income assessment as an annual notional figure.
Employed and Self-Employed income can be considered to support pension income up to age 75 –please refer full details. Please note, shift allowance/overtime/maintenance are not normally acceptable.
Income from property and investments acceptable if evidenced by SA302s and SA100s.
100% benefits which are subject to a lifetime award.
Please note: Where rental income is needed to support the mortgage, you must submit an Agreement in Principle to the Society. An element of property income can be used but the amount considered is linked to income and the debt outstanding on the investment properties.
Dependent on applicant’s age, please see Maximum Mortgage Term guidelines.
Minimum 5 years (product dependent).
Maximum 27 years.
We will consider remortgage applications where the applicant has been the registered owner for the past 6 months. Refer if less than 6 months.
Repayment, interest only and part and part applications accepted dependent on the selected product.
Interest Only Repayment Vehicle
Sale of Mortgaged Security/Investments/Sale of other Property/Endowment.
Minimum Property Value
England and Wales.
The property must be the main residence of the applicant(s).
Properties must be of traditional construction.
Timber framed properties may be considered if brick clad.
New build houses subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10)/Buildzone/Zurich/ICW (International Construction Warranties)/AHCI Ltd or Professional Consultants Certificates – maximum 60% LTV.
Purpose built and converted flats and maisonettes are acceptable (new builds not acceptable) up to 60% LTV and must be leasehold.
Flats/apartments more than 4 storeys –if above 4 storeys, they must be serviced by at least 1 lift. if above 4 storeys, they must be serviced by at least 1 lift. Flats above 6 storeys are not acceptable.
HMOs, self-builds, properties held in Trust, present or former hotels/guest houses/B&B’s, commercial
properties (even if applicants intend to convert back to residential).
Studio flats or ex local authority flats.
New build flats.
Flats above commercial property.
Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
Any property where an EWS1 form for wall cladding is required.
Reasons for Additional Borrowing
• Home improvements
• Debt consolidation (maximum £30,000)
• Gift to family member
• Purchase of an investment or second home
Please note evidence would need to be submitted to satisfy the above.