When we are looking at your application we will consider your individual circumstances, but there is some criteria that you
should be aware of. We’ve put these here in one place so you can check before applying. If you are not sure, call to speak to
one of our mortgage associates and they will talk you through.
Information on the mortgage industry rule changes, effective 26 April 2014, can be found here
In order to apply for a first direct mortgage you and any joint applicant must:
- be a permanent UK resident and UK tax payer
- be able to provide evidence of your income and outgoings to show that the mortgage is affordable.
||sole applicants must have a minimum salary of £50,000, joint applicants must have a combined salary of £75,000, or one party with a minimum salary of £50,000.
to value (LTV)
General property criteria
All properties must be in the UK and be of standard construction with a working kitchen and bathroom.
At the moment, first direct do not lend on Buy to Let properties or where the property has been bought under a right to buy or shared ownership scheme.
The property must be used as your main residence and not for business purposes.
For leasehold properties, we will only lend where there is at least 25 years left on the lease at the end of the proposed mortgage term.
New build properties
We count a property as being new build if it is less than two years old or has never been occupied in its current format. If you're borrowing against a new build property:
- we may lend up to a maximum of 85% Loan to Value (LTV)
- if you have an LTV greater than 75% you will need to have a minimum deposit of £25,000.
For re-mortgage applicants
- your property cannot be currently up for sale.
Properties with land
If the property will have more than 15 acres:
- we will require a building survey before we can release any part of the mortgage loan
- you will need to confirm that there is no agricultural restriction attached to the property and that it is used for personal use
- we will only be able to lend you up to 75% of the purchase price or valuation, whichever is the lower.
- we may not offer a mortgage on a flat in the same building as a commercial property
- if the building containing the flat has more than five floors, it must have a lift
- if the block is ex-local authority then we will require confirmation that at least 75% of the flats are now privately owned.
- we are generally unable to offer lending on freehold flats in England and Wales unless the property is of a particular type located in Tyneside or we are also taking security against the freehold of the whole building.
If you, or your joint applicant, is self-employed, you will need to submit audited accounts prepared by an appropriately qualified accountant in support of an application. The governing bodies that we recognise for accounting purposes are as follows:
- ACCA / FCCA – Association of Certified Chartered Accountants
- ICAEW – Institute of Chartered Accountants (England & Wales)
- ICAS – Institute of Chartered Accountants (Scotland)
- AAT – Association of Accounting Technicians
- ATT – Association of Taxation Technicians
- CIOT – Chartered Institute of Taxation
- CIMA (ACMA) – Chartered Institute of Management Accountants
- ICAI – Chartered Accountants of Ireland
- IFA – Institute of Financial Accountants.
If you are an accountant and you complete your own accounts or a Sole Trader and complete your own self-assessment for Inland Revenue Tax
purposes, you will also need to have them retrospectively signed and over-stamped by another independent accountant.