Criteria for your RIO cases

As a repayment of a RIO mortgage is triggered by a life event, unless indicated, the Society will assume a term in line with the guidelines below. In the event that the mortgage term is reached, the Society will arrange for them to be extended.

2

£17,500 per application (the mortgage needs to be affordable by both applicants).

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.

Income from property and investments acceptable if evidenced by SA302’s and SA100’s.

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.

Minimum £30,000.
Maximum £750,000.

With a RIO mortgage, the borrower is required to pay the interest payments each month and the amount which can be borrowed will be based on the borrower’s ability to maintain these payments throughout the life of the mortgage. The capital will be repaid through sale of property on the occurrence of the earlier of the following life events:

• Death
• Leaving the property with no reasonable prospect of returning (e.g. moving into residential care, sheltered accommodation or living with family long-term)
• Acquiring another property for use as the main residence
• Selling the property without transferring the loan to the new property

Where there are joint borrowers the life event is triggered by the surviving borrower.

We will consider remortgage applications where the applicant has been the registered owner for the past 6 months. Refer if less than 6 months.

Sale of property.

£150,000

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.

Purpose built and converted flats and maisonettes are acceptable (new builds not acceptable) and must be leasehold.

Flats/apartments more than 4 storeys – if above 4 storeys, they must be services 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).

Prefabricated properties.

Holiday homes.

Studio flats and ex local authority flats.

New build flats.

Flats above commercial properties.

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.

Both freehold and leasehold are acceptable for houses.

Freehold flats/maisonettes are not acceptable- leasehold only.

Flying freeholds – refer.

For leasehold, there must be a minimum of 85 years unexpired lease at the start of the mortgage and 55 years remaining at the end.

• 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.