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.

Applicants who are non-UK citizens must have been permanently resident in the UK for the past 3 years and must have indefinite leave to remain in the UK and be a UK tax payer.

Evidence of the source of deposit is required.

Please refer.

Pension income.

For joint applications, each borrower must demonstrate the mortgage is affordable throughout the term.

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

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 the pension and investment income.

Minimum £30,000.
Maximum £1,200,000 (refer if above 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.

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 <3 years old subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10)/Buildzone/Zurich or Professional Consultant 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 15 storeys, referral to Underwriting required.

Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.

Prefabricated properties.

Holiday homes.

Studio flats and ex local authority flats.

New build flats.

Flats above commercial properties.

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.