Residential Lending Policy

We offer mortgages to various people in various situations. Residential mortgages are available for the following purposes:

• Purchases of a residential property
• Remortgages of an existing secured loan
• Capital raising
• Additional borrowing and product transfers for existing customers

All our mortgages are provided subject to status. This means that when you request a mortgage or a remortgage quote from us we will take into account your circumstances, both personal and financial, to make sure you could borrow the maximum mortgage that suits your lifestyle and your budget. We will also consider the amount you want to borrow and the value of your home. Our decision to provide you with the best mortgage rate will depend on these factors along with any criteria specific to the mortgage product you have chosen.

Standard Income Multiples

The maximum loan we will advance is also subject the following multiples:

Standard Maximum Advance

The maximum loan we will advance is as follows:

• For home purchase and remortgage, 90% of the price or valuation of the property, whichever is the lower. Please refer to specific product details for maximum LTV. There is also a restriction on properties worth more than £300,000.
• Remortgages for capital raising purposes are not permitted on mortgages above 80% loan to value and in some circumstances is restricted to 75%. Capital raising is described as anything other than the replacement of a home purchase loan or a loan for the purposes of home improvement.
• Second homes / holiday homes must be strictly for the sole use of the borrower and dependent family members and must not be let. The maximum loan to value for such properties is 75% and the applicants financial status must be sufficient to cover both loans (i.e. mortgage on first property plus new mortgage).

Purchase Price Valuation

All properties must have a minimum purchase price and / or valuation (whichever is lower) of £60,000.

Valuation Fees

Alternative fees will be charged for special schemes, please refer to specific product pages for details.

Status

The following points will be taken into account when considering the applicants' ability to meet mortgage payments.

• Employed applicants must either have been with their present employer for at least six consecutive months or, if less than 6 months, with a previous employer for at least eighteen consecutive months.
• Exceptions may be made for certain professionally qualified applicants who have only recently taken up employment.
• Applicants who have fixed term contracts within professional occupations such as doctors, teachers and solicitors, will be regarded as in permanent employment. Applicants from contract workers in other fields will be considered on their individual merits.
• Overtime / bonus / commission must be a regular component of earnings and 50% of such earnings will be taken into account. If the loan to value is no greater than 80%, then 75% of such earnings will be taken into account.
• We will consider 100% of unencumbered unearned income, including investment and rental sources. Pensions are an acceptable form of income, if guaranteed. All cases must be referred in the first instance.
• 50% of Income from a second job will be considered provided that there is a minimum of 12 months service.
• 100% of maintenance payments will be considered subject to a court order or CSA. All cases must be referred in the first instance.
• Our criteria for non-standard income, as listed above, applies to all applications, irrespective of the loan required.
• Applicants must normally have been resident in the United Kingdom for a minimum period of two years. This can be waived for members of the diplomatic corps, a member of HM Forces, or employees of international based companies, providing their family will be resident in the property.
• We will run a credit search on all our applicants' addresses to cover the three year period preceding the application. The results should confirm the applicants are registered at the address and that there are no:
  • CCJ's or Defaults (irrespective of being satisfied) within last 3 years
  • No Bankruptcy or IVA's, irrespective of being satisfied
  • Current arrears and instances where 3 or more consecutive payments missed in last 3 years will be referred to underwriters for assessment
  • Mortgage arrears within last 12 months (instances where there are will be referred to underwriters for assessment)
  All existing NBS borrowers will be referred to underwriters for assessment
• We will also check the Council of Mortgage Lenders possession register. If there is a positive entry in the applicants' name, we will be unable to progress the application.

Information Requirements

The following information is normally required in support of a mortgage application:

• For employed applicants, last three months' pay slips and most recent P60. Satisfactory references covering the last two years will also be sought. Single applicants must be at least 21 years of age. For joint applications the elder applicant must be at least 21, and the younger at least 18.
• For self employed applicants, the last two years' audited/certified accounts plus a projection for the current financial year. Accounts must be audited / certified by a chartered or certified qualified accountant. Applicants must be at least 23 years old.
• Self employed applicants applying for a loan of more than 80% of the property value must provide the last six months' business bank statements.
• Proof of payment for the preceding 12 months is required where the applicant has had a previous mortgage or has been a tenant and the data is not available via a credit check.
• For all forms of additional income which is being taken into account, documentary evidence will be required.
• In the event that the applicants are not registered on the electoral roll, they must supply proof of residence. Any utility bill, council tax bill, voters roll enquiries, bank statements or mortgage statements are acceptable, provided the original documents are supplied.
• The Society will be required to confirm identity. Acceptable documents include a, passport or driving licence or a recent bank statement.

Interest Rates, Fees and Charges

The Society's general administration fees are detailed in our leaflet "Serving Our Members" a copy of which is available on request.

Further Advances

General

• All the above conditions apply to wholly residential "Class 1" lending.
• The Society reserves the right to reject any application where the borrower has any convictions or pending prosecutions relation to financial misdemeanour or dishonesty.
• These guidelines outline the main elements of the Society's residential lending policy, but are by no means exhaustive.
• In the interests of security, we may from time to time record telephone calls to and from us.
• For clarification of any aspect of our policy, or a full written quotation, please contact your local branch or our customer contact center on 0845 600 4367.
• A first charge will be required as security. All mortgages are subject to status and valuation. APR's are typical and variable.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE