Lending Criteria


Buy to let


Residential


Expand all  Collapse all
General
Key factsDownwards_arrowUpwards_arrow
  • Up to 85% LTV
  • Loans up to £3m
  • Professional landlords welcome
  • Affordability is based on rental cover only
  • Loans over 80% LTV are not available for first time landlords
  • Separate legal representation is required in some circumstances
  • Joint representation is permitted via our approved Limited company/ LLP panel of conveyancers however, separate legal representation is required in some circumstances
Loan purposeDownwards_arrowUpwards_arrow
  • Applications are considered for the purchase or remortgage of the applicant's BTL property.
  • A breakdown of additional borrowing is required.
  • Remortgage of the applicant's BTL property is acceptable for any legal purpose except to repay tax, to shore up a business, for business purposes or for gambling debts.
Additional borrowingDownwards_arrowUpwards_arrow
  • Buy to Let additional borrowing products are available on repayment or interest-only terms.
  • Minimum loan is £15,000
  • Maximum loan is £1m
  • The term of any BTL additional borrowing must not exceed the term of the existing mortgage
  • Buy to Let additional borrowing are not portable
Buy to Let Portfolio Submission RequirementsDownwards_arrowUpwards_arrow

portfolio landlords with 4 or more mortgaged Buy to Let properties (including those that are applying for a fourth mortgaged property, or those looking to re-mortgage one of their existing four properties), additional information will be required, including details of the borrower’s wider Buy to Let portfolio, which will be assessed as part of the underwriting process. Please use our Portfolio Submission Platform, eTech, to submit this information.

We will also require the following documents to support the borrower's application:

  • Business Plans
  • Assets and Liabilities statement
  • Cash flow statement
Source of depositDownwards_arrowUpwards_arrow
  • The balance of the purchase price not being borrowed should come from the applicant’s own resources.
  • In case of a family member gifted deposit, a letter must be provided by an immediate family member (mother, father, sibling, grandparent); the family member confirming that the gift is not a loan, is non-refundable and the donor will have no interest in the property. ID of the donor will be required.
Fees and charges
Fee assisted remortgage fees and chargesDownwards_arrowUpwards_arrow

If additional work is required by Optima Legal your client will be responsible for these additional fees. Click here to see full details.

Application feeDownwards_arrowUpwards_arrow

Application fee: £130.

This is a charge for assessing and processing the application (even if it is unsucessful or is withdrawn). Payable at the time of application.

Product feesDownwards_arrowUpwards_arrow

Please refer to the product pages for the relevant product fee payable.

Product switching feeDownwards_arrowUpwards_arrow

Product switching fee: £30

This is charged when a product is switched post offer; the client will be required to pay the additional Product fee as shown on the product page.

Legal costs for Limited Company loansDownwards_arrowUpwards_arrow

Any cases that require separate legal representation for the bank will incur the following costs that the client will need to pay.

 Up arrow - 09 Right Arrow - 09Separate representation (lender only)

Any cases that require separate legal representation for the bank will incur the following costs that the client will need to pay.

 
Loan size Fee for freehold Fee for leasehold
£0 - £250,000
£450 £525
£250,001 to £1,000,000
£450

+ 0.15% of the amount of the advance over £250,000
£525

+ 0.15% of the amount of the advance over £250,000
£1,000,001+
 0.20% of the advance  0.21% of the advance

Additional fees Freehold Leasehold
 Each additional AST
 £25  £25
Additional fees for companies Freehold Leasehold
Corporate customer £125 £125
Personal guarantee (per guarantor) £50 £50


Note

The above fees will be subjected to the payment of VAT at the going rate.
Disbursements will be payable for relevant searches, land registration costs, stamp duty land tax (where applicable)

The additional fee items listed above are not an exhaustive list. If the Borrower requires any additional fee work to be undertaken (e.g. board minutes etc.) the fee(s) for those items must be separately negotiated with the selected firm.  

Loan/Purchase instructions not proceeded with will all be charged in an amount commensurate to the work done as at the time that the matter becomes abortive.

Download a PDF of our legal costs for separate representation

 Up arrow - 09 Right Arrow - 09Joint representation (lender and customer)

Any case where the customer selects joint legal representation the conveyancer must be selected from the bank's approved panel of conveyancers who will act on behalf of the customer and the bank. The customer will incur the following costs that the customer will need to pay. 

Loan size/Purchase price
(whichever is greater)
Fee for freehold Fee for leasehold
   Remortgage  Purchase  Remortgage  Purchase
£0 to £150,000
 £550  £650  £700  £850
£150,001 to £300,000
 £550  £700  £700  £900
£300,001 to £350,000
 £650  £800  £800  £1,000
£350,001 to £400,000  £650  £900  £800  £1,200
£400,001 to £500,000  £750  £1,000  £950  £1,400
£500,001 to £600,000  £850  £1,200  £1,050  £1,600
£600,001 to £700,000  £950  £1,400  £1,150  £1,800
£700,001 to £800,000  £1,150  £1,600  £1,250  £2,000
£800,001 to £900,000  £1,350  £1,700  £1,550  £2,200
£900,001 to £1,000,000  £1,550  £1,900  £1,750  £2,400
 £1,000,001+  0.20% plus £400  0.21% plus £400

 

Additional fees Freehold Leasehold
 Each additional AST
 £25  £25

Additional fees for companies Freehold Leasehold
Corporate customer £125 £125
Personal guarantee (per guarantor) £50 £50





Note:
The above fees will be subject to the payment of VAT at the going rate. Disbursements will be payable for relevant searches, land registration costs, stamp duty land tax (where applicable).

The above fees are only for the work requested to register our security in accordance with UK Finance Mortgage Lender's Handbook, any special conditions contained in the Mortgage Offer and the Companies Act 2006 (as amended).  

The additional fee items listed above are not an exhaustive list. If the Borrower requires any additional fee work to be undertaken (e.g. board minutes etc.) the fee(s) for those items must be separately negotiated with the selected firm. 

Loan/ purchase instructions not proceeded with will be charged in an amount commensurate to the work done as at the time the matter becomes abortive.

There may be some circumstances where joint representation may not be appropriate. 

Download a PDF of our legal costs for joint representation
Valuation feesDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Standard Buy to Let valuation fees for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £75,000 £150 £400,001 to £450,000 £325 £1,500,001 to £2,000,000 £1,625
£75,001 to £100,000 £150 £450,001 to £500,000 £350 £2,000,001 to £2,500,000 £1,925
£100,001 to £150,000 £175 £500,001 to £600,000 £485 £2,500,001 to £3,000,000 £2,225
£150,001 to £200,000 £200 £600,001 to £700,000 £585 £3,000,001 to £3,500,000 £2,725
£200,001 to £250,000 £225 £700,001 to £800,000 £650 £3,500,001 to £4,000,000 £3,125
£250,001 to £300,000 £250 £800,001 to £900,000 £710 £4,000,001 to £4,500,000 £3,425
£300,001 to £350,000 £275 £900,001 to £1,000,000 £825 £4,500,001 to £5,000,000 £3,725
£350,001 to £400,000 £300 £1,000,001 to £1,500,000 £1,225
 Up arrow - 09 Right Arrow - 09Specialist Buy to Let valuation fees for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £150,000 £440 £450,001 to £500,000
£645 £1,500,001 to £2,000,000
£1,825
£150,001 to £200,000 £455 £500,001 to £600,000
£710 £2,000,001 to £2,500,000
£2,325
£200,001 to £250,000 £455 £600,001 to £700,000
£770 £2,500,001 to £3,000,000
£2,625
£250,001 to £300,000
£525 £700,001 to £800,000
£880 £3,000,001 to £3,500,000
£3,125
£300,001 to £350,000
£585 £800,001 to £900,000
£955 £3,500,001 to £4,000,000
£3,525
£350,001 to £400,000
£585 £900,001 to £1,000,000
£1,025 £4,000,001 to £4,500,000
£3,825
£400,001 to £450,000
£645 £1,000,001 to £1,500,000
£1,425 £4,500,000 to £5,000,000 £4,125
 Up arrow - 09 Right Arrow - 09Homebuyer (standard Buy to Let) report for new mortgage applications
 
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £100,000 £395 £450,001 to £500,000
£775 £2,000,001 to £2,500,000
£2,835
£100,001 to £150,000
£445 £500,001 to £600,000
£870 £2,500,001 to £3,000,000
£3,415
£150,001 to £200,000
£500 £600,001 to £700,000
£965 £3,000,001 to £3,500,000
£3,895
£200,001 to £250,000
£555 £700,001 to £800,000
£1,085 £3,500,001 to £4,000,000
£4,375
£250,001 to £300,000
£615 £800,001 to £900,000
£1,210 £4,000,001 to £4,500,000
£4,855
£300,001 to £350,000 £660
£900,001 to £1,000,000
£1,335 £4,500,000 to £5,000,000
£5,340
£350,001 to £400,000
£700 £1,000,001 to £1,500,000
£1,760

£400,001 to £450,000 £745  £1,500,001 to £2,000,000 £2,185    

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

Direct Debit informationDownwards_arrowUpwards_arrow

All mortgage payments must be paid by Direct Debit, usually on the 25th of the month.

However, at the customer's request payment dates can be from 10th to 28th of the month.

Applicant(s)
Number of applicantsDownwards_arrowUpwards_arrow

Maximum of 4 applicants.

Age limitsDownwards_arrowUpwards_arrow

Minimum age 25

Max age 85 at the end of the mortgage term.

Max age 79 on application.

ResidencyDownwards_arrowUpwards_arrow
  • In all cases, we must have a three year residency history. Applicants should have lived/worked in the UK for the last three years and should appear on the voters roll.
  • UK Nationals and Nationals of an EU country are accepted.
  • Foreign Nationals must have permanent rights to live and work in the UK.
Income validation documentationDownwards_arrowUpwards_arrow

For Buy to Let mortgages of less than 80% LTV, the minimum requirement for employed applicants is the latest payslip. Self-employed applicants must supply the latest accounts or SA302.

For Buy to Let mortgages of 80% LTV and higher, the following documentation is required:

Employed

  • Last three months' payslips.
  • P60 (if available).
  • We reserve the right to request the last three months' personal bank statements.

Self-employed

  • Last three years' audited accounts/SA302s.
  • We reserve the right to request the last three months' personal bank statements.

The underwriter will retain the right to request additional evidence if deemed necessary.

All applicants must provide one proof of identity and one proof of address.

Adverse creditDownwards_arrowUpwards_arrow

Applicants with adverse credit will not normally be considered.

The restrictions may not apply in the following circumstances (subject to full underwrite):

  • Where the CCJ/default was registered more than three years ago and satisfied prior to mortgage application.
  • Where the CCJ/default was satisfied more than 12 months prior to application regardless of date of registration.
  • Where the CCJs/defaults in aggregate amount to less than £300 regardless of the date of registration. It must be satisfied prior to mortgage application.
  • An explanation of the debt must be submitted with the application together with the evidence of satisfaction (if applicable).
  • Applicants who have had arrears in the last 12 months are not accepted. Arrears over three years ago may be accepted with an explanation (and confirmation that they are up to date).
  • IVA/Bankrupts who have been discharged over three years ago and who have no residual debt may be accepted with rationale at underwriter’s discretion. Additional documents may be requested.
Self-employedDownwards_arrowUpwards_arrow

Net profit before tax based on accounts for the last three years for sole traders and partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.

Three years can be calculated by either:

  • Straight average (of last three years)
  • Most recent year (if business is showing increase in profit)
 Up arrow - 09 Right Arrow - 09Income assessment

Net profit before tax based on accounts for the last three years for sole traders and partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.

Three years can be calculated by either:

  • Straight average (of last three years)
  • Most recent year (if business is showing increase in profit)
 Up arrow - 09 Right Arrow - 09Accountants' qualifications

The accountant must be from one of the following professional bodies:

ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA/CIPFA, AIA

Limited companies (ltd)Downwards_arrowUpwards_arrow

Limited Companies – accepted. The Limited Company must also be non-trading and must be limited to solely holding property and not engaged in wider activities. All Directors must sign a personal guarantee and take independent legal advice (maximum four persons).

We only allow joint representation if the customer uses a conveyancer from the approved Limited Company panel and the case is suitable for such representation. The customer will be liable for the legal costs of joint representation. 

Loans of £2m or over, will continue to have separate legal representation with the Bank selecting a conveyancing firm from its approved panel to act on the Bank's behalf. The customer will be liable for the Bank's costs where a case proceeds under separate representation. 

Limited Liability Partnerships (LLP)Downwards_arrowUpwards_arrow

Lending to non-trading Limited Liability Partnerships (LLP) is part of standard lending policy. All new applications will be subject to the following requirements:

  • Personal guarantees for 100% of the loan provided by all LLP members, and;
  • Evidence the company is non-trading

We also allow existing Kent Reliance borrowers to switch a Buy to Let asset from an individual name into an LLP.

We only allow joint representation if the customer uses a conveyancer from the approved LLP panel and the case is suitable for such representation. The customer will be liable for the costs of joint representation. 

Loans of £2m or over, will continue to have separate legal representation with the Bank selecting a conveyancing firm from its approved panel to act on the Bank's behalf. The customer will be liable for the Bank's costs where a case proceeds under separate representation. 

Acceptable proof of ID and addressDownwards_arrowUpwards_arrow
Evidence of ID Evidence of address

Valid UK Passport

Valid UK Driving Licence - Photocard (Full or Provisional)

Valid non-UK passport or National ID Card

HM Forces/Police warrant card

Shotgun licence or firearms certificate

Valid UK Driving Licence - Photocard (Full or Provisional) if not used as proof of ID

Valid old style Driving Licence - paper

Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK - includes bank or building society savings books (not internet printed)

Current mortgage statement issued by a regulated financial sector firm in the UK

Utility bill or landline telephone bill (not internet printed and landline number must be the same as quoted on the application)

Council Tax bill

A positive voters roll result (include reference number or printed copy as evidence)

Please note that in accordance with the DVLA regulations you will need to check the expiry date of your photo-card driving licence. If the photo is in excess of 10 years old we may not accept it as proof of address and therefore other items may be requested.

New application from existing borrowersDownwards_arrowUpwards_arrow

For new applications on behalf of existing BTL borrowers* we will only require the following:

  • A completed application and declaration form;
  • Valuation report;
  • Written confirmation from the borrower that their circumstances are unchanged.

A fresh credit search will be carried out to ensure that the credit profile still meets required lending policy. If the borrower's circumstances have changed, the underwriter will retain the right to request additional information.

*The reduced document requirement only applies to existing borrowers whose last loan completed within the last 12 months and where the standard required documentation was provided.

January 2017 Affordability Changes

Existing Kent Reliance Buy to Let customers who had their mortgage before our criteria changed rates will not be affected by the changes when looking to switch rates and will be able to switch according to the previous lending criteria.

Affordability
Rental Income RequirementsDownwards_arrowUpwards_arrow

Interest Coverage Ratio (ICR) will depend on the property type and whether or not we are lending to a limited company. 

  • For purchases and remortgages with additional borrowing, the minimum stress rate applicable for rental cover purposes is 5.5%, or the initial pay rate plus 1.55%, whichever is higher.
  • Remortgages where no additional borrowing is being raised, will not be subject to a minimum stress rate, with rental cover being assessed against the initial pay rate plus 1.05%.
  • 5 year fixed rate applications will continue to be stress-tested at the initial pay rate, with no additional margin or minimum rate applicable.

Standard property

Standard properties are defined as the following:

  • Single dwellings
  • HMO/Multi/Student lents with up to 5 rooms
  • Freehold block/titles of land with up to 4 residential units
 
Personal Limited Company 
140% rental cover 125% rental cover

Specialist property

Specialist properties are defined as:

  • HMO/multi/student lets with 6 or more rooms
  • Freehold block/titles of land with 5 or more residential units
 
Personal  Limited Company 
160% rental cover 145% rental cover

Please note that the above definitions only apply to the required rental cover, not the submission journey. The submission journeys are classed as follows:

  • Residential and Standard BTL journey: all residential applications, ex-pat BTLs and single family BTLs
  • Specialist BTL journey: HMOs, student lets, multiple units under one freehold, and limited company BTLs

Remortgages

As stated above, where no additional borrowing is raised, the additional margin added to the pay rate will be 1.05%, rather than 1.55%, and no minimum stress rate will apply.

Existing Customers

Existing Kent Reliance buy-to-let customers looking to switch rates will not be affected by the changes and be able to switch according to the previous lending criteria.

Using passing rent to calculate the estimated loan amountDownwards_arrowUpwards_arrow

In some circumstances, when calculating the amount we are willing to lend, we are able to accept the passing rent for a property, rather than the market rent confirmed by the valuer.

In order to use the passing rent to calculate the estimated loan amount, each of the following criteria must be met:

  • Evidence of two rental periods (bank statements or letting agent confirmation) is provided
  • The passing rent adopted does not exceed 10% of the Market Rent supported by the valuer
  • The passing rent is on a fully exclusive basis; i.e. it does not include cost of utilities, council tax etc.
  • The tenant is an independent third party
Property/properties
Exposure limitsDownwards_arrowUpwards_arrow

The Bank will not lend on more than 20% on any one block or development.

Where the block contains four units or less the application of the 20% rule is entirely at the discretion of the underwriter.

Studio flatsDownwards_arrowUpwards_arrow

Studio flats must be a minimum of 30sq metres.

FlatsDownwards_arrowUpwards_arrow
  • Flats in blocks must be of modern construction.
  • Maximum number of floors: six (plus ground floor).
  • Blocks with more than six floors will be considered but the building must have a lift.
  • Ex-local authority flats can be considered where there is good re-sale and the block is more than 80% privately owned.
Freehold flatsDownwards_arrowUpwards_arrow
  • Over 30sq metres gross internal area.
  • Buy to Let instructions may be received for freehold blocks of flats, containing up to a maximum of six separate units.
  • Self-contained including separate services.
  • If the valuer is of the opinion that there is no or limited market for the units individually the property will not be recommended as suitable security.
Properties above commercial premisesDownwards_arrowUpwards_arrow
  • The above property type will be considered on a case by case basis.
  • In general, properties above take-aways, cafés, bars and dry cleaners will not be accepted. This list is not exhaustive and you may wish to contact your BDM or underwriter for further clarification.
SecurityDownwards_arrowUpwards_arrow
  • Location: England and Wales only.
  • A first legal charge is required.
  • Shared ownership: full MPC is required and must have staircasing ability to 100%.
  • New build: must have acceptable warranty or CML compliant certificate.
  • Self-build: can be considered. Must have required certification.
Builders' incentivesDownwards_arrowUpwards_arrow

Builder’s Incentives are deducted from the lower of the purchase price or valuation with loan based on the lower amount. The applicant must provide the required level of deposit to meet product requirements.

TenancyDownwards_arrowUpwards_arrow

The property must be let on an Assured Shorthold Tenancy or a contractual tenancy. A fixed term of 12 months can be considered up to 85% LTV. A fixed term of up to 36 months can be considered up to 75% LTV.

We accept 36 month tenancies in the following circumstances:

  • The AST provides for a rent review every 12 months or less
  • Application must meet our minimum Debt Service Coverage Ratio (please see our "Affordability" section)
  • A maximum LTV of 75%
TenureDownwards_arrowUpwards_arrow
  • Freehold: houses only
  • Leasehold: the unexpired term of the lease must be at least 50 years at the end of the mortgage term.
Leasehold propertiesDownwards_arrowUpwards_arrow

A maximum LTV of 75% applies for interest-only loans on leasehold properties with an unexpired term of less than 85 years at application.

HMOsDownwards_arrowUpwards_arrow

Houses in Multiple Occupation are acceptable. Maximum of eight beds subject to valuation as stated in our fees and charges. All necessary consents must be in place (offer condition will be applied). AST(s) must be in place and occupation must be within 30 days of completion.

Kent Reliance can consider larger HMO properties (generally properties with more than eight bedrooms) if the applicant already owns an HMO property. These will be valued using a long-form valuation report and will be instructed and reviewed by our Real Estate team. Due to the more detailed nature of the long-form report, the advertised fee tariffs will not apply and will be determined on an individual basis.

For an HMO purchase, it is a condition that either a licence is in place or a licence application has been submitted on completion.

All HMO remortgages require a licence to be in place on completion.

No results found
General
Key factsDownwards_arrowUpwards_arrow

      Residential Prime (Up to £500,000)

Maximum LTV % Maximum Loan (£)
90% £500,000



Residential Prime (Over £500,000)

Maximum LTV % Maximum Loan (£)
90% £3,000,000



Residential Near Prime 1

Maximum LTV % Maximum Loan (£)
90% £500,000



Residential Near Prime 2

Maximum LTV % Maximum Loan (£)
85% £500,000



Residential Near Prime 3

Maximum LTV % Maximum Loan (£)
80% £500,000



Shared Ownership

Maximum LTV % Maximum
share value
Maximum Loan (£)
75% 100% £1,000,000
Loan purposeDownwards_arrowUpwards_arrow
  • Applications are considered for the purchase or remortgage of the applicant’s main residence.
  • A breakdown of additional borrowing is required.
  • Remortgage of the applicant’s main residence is acceptable for any legal purpose except to repay tax, to shore up a business, for business purposes or for gambling debts.
  • For Shared Ownership, additional borrowing is for staircasing purposes only or home improvements where the housing association confirms that the Bank is protected under the Mortgage Protection Clause.
Minimum advance Downwards_arrowUpwards_arrow
  • Prime loans below £500,000 is £100,000
  • Prime loans £500,000 or above is £500,000, including asset backed interest only*
  • Near Prime 1, 2 and 3 is £100,000
  • Shared Ownership is £70,000.
*Asset backed interest only not available at 90% LTV.
Term Downwards_arrowUpwards_arrow

Years
Minimum term
5
Maximum term
35
Additional borrowingDownwards_arrowUpwards_arrow

Please select a residential additional borrowing product from the below:

 Up arrow - 09 Right Arrow - 09Standard residential additional borrowing
  • These mortgage products are only available on a repayment basis. Interest-only or part repayment/part interest-only may be available only by exception
  • The term of any additional borrowing must not exceed the term of the existing mortgage.
  • Minimum loan is £15,000
  • Maximum loan is £1m
  • These mortgage products are portable. Even if your client moves home during the initial special deal period of a mortgage, the remaining benefits (up to the outstanding balance of their existing mortgage) of that special deal can be transferred to their new mortgage with us, subject to our lending criteria at the time of any move. In this case, any early repayment charges will not be charged but the existing rate will not apply to any additional funds that your client borrows.
 Up arrow - 09 Right Arrow - 09Shared ownership additional borrowing
  • These products are only for home improvements and staircasing. Additional borrowing for personal borrowing is not available
  • These mortgage products are only available on a repayment basis
  • • The minimum mortgage term is 5 years and the maximum 35
  • Maximum loan is £1m
  • • These mortgage products are portable. Even if your client moves home during the initial special deal period of a mortgage, the remaining benefits (up to the outstanding balance of your existing mortgage) of that special deal can be transferred to the new mortgage with us, subject to our lending criteria at the time of any move. In this case, any early repayment charges will not be charged but the existing rate will not apply to any additional funds that are borrowed.
Source of depositDownwards_arrowUpwards_arrow

The balance of the purchase price not being borrowed should come from the applicant’s own resources.

In case of a family member gifted deposit, a letter must be provided by an immediate family member (mother, father, sibling, grandparent); the family member confirming that the gift is not a loan, is non-refundable and the donor will have no interest in the property. ID of the donor will be required.

Fees and charges
Fee assisted remortgage fees and chargesDownwards_arrowUpwards_arrow

If additional work is required by Optima Legal your client will be responsible for these fees. Click here to see full details

Application feeDownwards_arrowUpwards_arrow

Application fee: £130.

This is a charge for assessing and processing the application (even if it is unsucessful or is withdrawn). Payable at the time of application.

Product feesDownwards_arrowUpwards_arrow

Please refer to the product pages for the relevant product fee payable.

Product switching feeDownwards_arrowUpwards_arrow

Product switching fee: £30

This is charged when a product is switched post offer; the client will be required to pay the additional Product fee as shown on the product page.

Valuation feesDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Standard residential valuation fees for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £75,000 £150 £400,001 to £450,000 £325 £1,500,001 to £2,000,000 £1,625
£75,001 to £100,000 £150 £450,001 to £500,000 £350 £2,000,001 to £2,500,000 £1,925
£100,001 to £150,000 £175 £500,001 to £600,000 £485 £2,500,001 to £3,000,000 £2,225
£150,001 to £200,000 £200 £600,001 to £700,000 £585 £3,000,001 to £3,500,000 £2,725
£200,001 to £250,000 £225 £700,001 to £800,000 £650 £3,500,001 to £4,000,000 £3,125
£250,001 to £300,000 £250 £800,001 to £900,000 £710 £4,000,001 to £4,500,000 £3,425
£300,001 to £350,000 £275 £900,001 to £1,000,000 £825 £4,500,001 to £5,000,000 £3,725
£350,001 to £400,000 £300 £1,000,001 to £1,500,000 £1,225
 Up arrow - 09 Right Arrow - 09Homebuyer report for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £100,000 £395 £450,001 to £500,000
£775 £2,000,001 to £2,500,000
£2,835
£100,001 to £150,000
£445 £500,001 to £600,000
£870 £2,500,001 to £3,000,000
£3,415
£150,001 to £200,000
£500 £600,001 to £700,000
£965 £3,000,001 to £3,500,000
£3,895
£200,001 to £250,000
£555 £700,001 to £800,000
£1,085 £3,500,001 to £4,000,000
£4,375
£250,001 to £300,000
£615 £800,001 to £900,000
£1,210 £4,000,001 to £4,500,000
£4,855
£300,001 to £350,000 £660
£900,001 to £1,000,000
£1,335 £4,500,000 to £5,000,000
£5,340
£350,001 to £400,000
£700 £1,000,001 to £1,500,000
£1,760

£400,001 to £450,000 £745  £1,500,001 to £2,000,000 £2,185    

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

Direct Debit information

All mortgage payments must be paid by Direct Debit, usually on the 25th of the month. However, at the customer's request payment dates can be from 10th to 28th of the month.

Direct Debit informationDownwards_arrowUpwards_arrow

All mortgage payments must be paid by Direct Debit, usually on the 25th of the month.

However, at the customer's request payment dates can be from 10th to 28th of the month.

Applicant(s)
Number of applicantsDownwards_arrowUpwards_arrow

Maximum of four borrowers (including guarantors).

If the applicant is married or in a civil partnership then their spouse or partner must be included in the application.

Age limitsDownwards_arrowUpwards_arrow

Minimum age 18.

Max age 85 at the end of the mortgage term.

Max age 79 on application.

GuarantorsDownwards_arrowUpwards_arrow

Guarantors are acceptable as long as they do not make the number of applicants on the mortgage exceed four.

Guarantors need to provide evidence of income, existing commitments and bank statements and will be underwritten in line with applicant requirements.

AffordabilityDownwards_arrowUpwards_arrow

All residential loans must pass the affordability test using the Bank's own model.

Acceptable incomeDownwards_arrowUpwards_arrow
  • Gross Annual Income including 100% of guaranteed permanent allowances to include large town weighting allowance, car allowance, housing allowance.
  • 50% regular overtime, bonus or commission.
  • 100% of maintenance by court order (child must be 13 years old or under).
  • Benefits such as child tax credits, housing benefit, child benefit, job seekers allowance or mobility allowance are NOT accepted.
  • State pension will be accepted as long as it is not the sole source of income.
  • Self-Employed – Net profit before tax based on finalised accounts for the last three years for sole traders and partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.

Additional income

Income from other sources such as investment income, second jobs, personal pensions and trust funds may be accepted subject to documentary evidence.

Prime CriteriaDownwards_arrowUpwards_arrow
CCJs  0 in the last 36 months*
Defaults  0 in the last 36 months*
Missed Mortgage/ Secured Loan Payments  0 in the last 12 months and currently up to date
Unsecured Arrears  0 in the last 12 months and currently up to date 
Maximum Status Must be currently up to date. Maximum 2 down in last 24 months
Debt Management Plan Not acceptable
IVA/ DRO/ Bankruptcy  Not acceptable
Repossessions  Not acceptable
Max Plan LTV 90%
*Must be satisfied prior to mortgage application. Ignore if: <£300 in total and satisfied

For full Prime Criteria download our Residential Criteria sheet.
Near Prime 1 Criteria *NOW AVAILABLE TO ALL BROKERSDownwards_arrowUpwards_arrow
CCJs  0 in the last 24 months**
Defaults  0 in the last 24 months**
Missed Mortgage/ Secured Loan Payments  0 in the last 12 months and currently up to date
Unsecured Arrears  2 in the last 12 months and currently up to date
Maximum Status  Currently be up to date. Previously maximum ignored
Communication, Utility and Mail Order Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy  Not acceptable
Repossessions  Not acceptable
Max Plan LTV 90%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 1 Criteria download our Residential Criteria sheet.
Near Prime 2 Criteria *NOW AVAILABLE TO ALL BROKERSDownwards_arrowUpwards_arrow
CCJs  0 in the last 12 months** (1 in the last 24 months**)
Defaults  0 in the last 12 months** (1 in the last 24 months**)
Missed Mortgage/ Secured Loan Payments  0 in the last 12 months and currently up to date
Unsecured Arrears  2 in the last 12 months and currently up to date 
Maximum Status Currently up to date. Previous maximum ignored
Communication, Utility and Mail Order Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy  > 6 years discharged 
Repossessions  Not acceptable
Max Plan LTV 85%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 2 Criteria download our Residential Criteria sheet.
Near Prime 3 Criteria *NOW AVAILABLE TO ALL BROKERSDownwards_arrowUpwards_arrow
CCJs  0 in the last 6 months** (1 in the last 24 months)
Defaults  0 in the last 6 months** (2 in the last 24 months)
Missed Mortgage/ Secured Loan Payments  0 in 6 months and currently up to date
Unsecured Arrears  2 in the last 12 months and currently up to date
Maximum Status Currently up to date. Previous maximum ignored
Communication, Utility and Mail Order Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy  > 3 years discharged 
Repossessions  Not acceptable.
Max Plan LTV 80%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 3 Criteria download our Residential Criteria sheet.
Shared Ownership CriteriaDownwards_arrowUpwards_arrow
Missed Mortgage/ Rent Arrears In the last 12 months are not normally accepted but may be considered subject to individual case assessment
County Court Judgements or Registered Defaults  In the last 36 months are not normally accepted but may be considered subject to individual case assessment
The following CCJ/ default criteria can be considered subject to individual case assessment:

  • Where the CCJ/ default was registered more than three years ago and satisfied prior to mortgage application
  • Where the CCJ/ default was satisfied more than 12 months prior to application regardless of the date of registration
  • Where the CCJ/ default in aggregate amount to less than £300 regardless of the date of registration. It must be satisfied prior to mortgage application. 
Individual Voluntary Agreement (IVA) & Discharged Bankrupts IVA/ Bankrupts who have been discharged over three years ago and who have no residual debt may be accepted subject to individual assessment.
Repossessions  Not acceptable
Contractors *NEW CRITERIADownwards_arrowUpwards_arrow
  • No minimum income requirement for contractors seeking a residential Mortgage 
  • Max LTV 85%
Self-employed *NEW CRITERIADownwards_arrowUpwards_arrow

Kent Reliance is able to consider residential mortgage applications from self-employed applicants who have been trading a minimum of 12 months, subject to the following criteria:

  • Applicant must be represented by an accountant with suitable qualifications – see below for details;
  • Income to be calculated based on the finalised accounts prepared by the accountant;
  • Projection for second year income must be provided by the accountant;
  • Applicant must have a minimum 12 month’s previous track record in the same sector as their current business. This must be evidenced by proof of previous PAYE income;
  • 3 month’s personal and business bank statements must be provided;
  • Self-assessment returns or SA302 are NOT accepted as proof of income;
  • Income will be verified by means of an accountant’s reference.
  • We are able to use the projected income in year two where a suitable business plan is provided and the income level is not more than 30% higher than the first finalised period.
  • Max LTV 85%
 Up arrow - 09 Right Arrow - 09Accountants' qualifications

The accountant must be from one of the following professional bodies:

ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA/CIPFA, AIA

Required validation documentationDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Proof of ID and Address

All applicants must provide one proof of identity and one proof of address.

Evidence of ID Evidence of address

Valid UK Passport

Valid UK Driving Licence - Photocard (Full or Provisional)

Valid non-UK passport or National ID Card

HM Forces/Police warrant card

Shotgun licence or firearms certificate

Valid UK Driving Licence - Photocard (Full or Provisional) if not used as proof of ID

Valid old style Driving Licence - paper

Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK - includes bank or building society savings books (not internet printed)

Current mortgage statement issued by a regulated financial sector firm in the UK

Utility bill or landline telephone bill (not internet printed and landline number must be the same as quoted on the application)

Council Tax bill

A positive voters roll result (include reference number or printed copy as evidence)

†Please note that in accordance with the DVLA regulations you will need to check the expiry date of your photo-card driving licence. If the photo is in excess of 10 years old we may not accept it as proof of address and therefore other items may be requested.

 Up arrow - 09 Right Arrow - 09Employed applicants: required documents
  • Last three months' payslips.
  • P60 if available.
  • Last three months' bank statements showing income and expenditure.
 Up arrow - 09 Right Arrow - 09Self employed applicants: required documents

General self-employed applicants

  • Last three years' finalised accounts.
  • SA302s (if accounts not available).
  • Last three months' personal bank statements showing income and expenditure.
  • Last three months' business bank statements.

Self-employed professionals

  • Projection for second year income.
  • Proof of 12 month’s PAYE income in same sector as current business.
  • 3 month’s personal and business bank statements.
  • Accountant’s reference as verification of income.
  • Self-assessment returns or SA302 are NOT accepted as proof of income.
 Up arrow - 09 Right Arrow - 09Contractors: required documentation
  • Current contract must have at least three months remaining at application.
  • Applications must be able to evidence at least one renewal with a minimum 12 months sector experience (either as contractor or PAYE employment).
  • Three months’ personal and business bank statement must be provided.
  • Copy of latest and previous contract.
ResidencyDownwards_arrowUpwards_arrow
  • In all cases, we must have a three year residency history. Applicants should have lived/worked in the UK for the last three years and should appear on the voters roll.
  • UK Nationals and Nationals of an EU country are accepted.
  • Foreign Nationals must have permanent rights to live and work in the UK.
Property/properties
Studio flatsDownwards_arrowUpwards_arrow

Studio flats must be a minimum of 30sq metres.

Leasehold propertiesDownwards_arrowUpwards_arrow

The unexpired term of the lease must be at least 50 years at the end of the mortgage term.

A maximum LTV of 75% applies for interest-only loans on leasehold properties with an unexpired term of less than 85 years at application.

Studio flats must be a minimum of 30sq metres.

FlatsDownwards_arrowUpwards_arrow
  • Flats in blocks must be of modern construction.
  • Maximum number of floors (excluding ground floor): 6*
  • Blocks with more than six floors will be considered but the building must have a lift.
  • Ex-local authority flats can be considered where there is good re-sale and the block is more than 80% privately owned.

*London boroughs: 12 (must have a lift if the property in question is the fourth floor or above.

Properties above commercial premisesDownwards_arrowUpwards_arrow
  • The above property type will be considered on a case by case basis.
  • In general, properties above take-aways, cafés, bars and dry cleaners will not be accepted. This list is not exhaustive and you may wish to contact your BDM or underwriter for further clarification.
TenureDownwards_arrowUpwards_arrow

Freehold: houses only

Leasehold: the unexpired term of the lease must be at least 50 years at the end of the mortgage term.

SecurityDownwards_arrowUpwards_arrow
  • Location: England and Wales only.
  • A first legal charge is required.
  • Shared ownership: full MPC is required and must have staircasing ability to 100%.
  • New build: must have acceptable warranty or CML compliant certificate.
  • Self-build: can be considered. Must have required certification.
Shared OwnershipDownwards_arrowUpwards_arrow

Shared ownership properties must be purchased through a registered Housing Association that permits up to 100% staircasing.

The client's share of the property must be a minimum of 25% and a maximum of 75% of the full property value.

Minimum loan £70,000

Maximum loan £1,000,000

Applicants must use one of our approved solicitors.

Builders' incentivesDownwards_arrowUpwards_arrow

Builder’s Incentives are deducted from the lower of the purchase price or valuation with loan based on the lower amount. The applicant must provide the required level of deposit to meet product requirements.

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