How can we help you?

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A

Acceptable property types
  • Standard houses (single residential dwelling unit) – detached, semi- detached, terraced, cottage and bungalow
  • Flats/maisonettes/apartments
    • Must be self-contained with private facilities and access to the highway
    • Must not contain more than 20 storeys in the block
    • Ex-local authority flats/maisonettes accepted where the block is predominantly owner occupied
    • Flats above/near commercial properties can be considered if they're good quality
    • Minimum floor area of 30m²
  • Basement flats
    • Only accepted within London
    • Minimum floor area of 30m²
  • Studio flats
    • Maximum 70% LTV
    • Minimum floor area of 30m²
  • Houses of Multiple Occupation (HMO) – defined as a property where there are a minimum of three tenants in occupation who form more than one household and share toilet, bathroom or kitchen facilities
    • See specific HMO criteria for further details
  • Multi-unit freehold blocks (MUFB) – defined as a single structure that contain separate units or flats that are not subject to individual leases and therefore the property remains on one freehold title
    • Individual units must be completely self-contained and meet prevailing property criteria including minimum valuation figures and rental calculations
    • Minimum floor areas of 30m² per individual unit
    • See specific MUFB criteria for further details
Maximum allowable adverse: Individuals

We'll verify any information relating to adverse credit on the individual’s credit bureau record. The below defines what a prime customer is, and the level of adverse for non-prime customers that we'll consider.

Prime borrowers:

  • Bankruptcy: Nil
  • Individual Voluntary Arrangement (IVA): Nil
  • Active Debt Management Plan: Nil
  • Repossession/secured default: Nil
  • County Court Judgment (CCJ): Nil
  • Defaults: Nil
  • Missed mortgage/secured loan repayments: Nil
  • Missed unsecured loans/products: Worst status of 1 in 12 months, 2 in 36 months
  • Active Payment Arrangements: Nil

Non-prime (maximum advance £1m)

  • Bankruptcy: Nil
  • Individual Voluntary Arrangement (IVA): Nil
  • Active Debt Management Plan: Nil
  • Repossession/secured default: Nil
  • County Court Judgment (CCJ): 0 in 24 months, 1 in 36 months
  • Defaults: 0 in 12 months, 2 in 24 months
  • Missed mortgage/secured loan repayments: 0 in 12 months, worst status of 1 in 36 months
  • Missed unsecured loans/products: Worst status of 1 in 12 months, 3 in 36 months
  • Active Payment Arrangements: Nil

Additional exclusions: applicants who're currently in arrears or have historically defaulted on a product supplied by any other Chetwood Financial brand.

Maximum allowable adverse: Limited company

We'll verify any information relating to adverse credit on the individual’s credit bureau record and the commercial bureau record.

  • Derogatory item: Nil
  • Active Debt Management Plan: Nil
  • Repossession/secured default: Nil
  • County Court Judgment (CCJ): 0 in 24 months, 1 in 36 months
  • Defaults: 0 in 12 months, 2 in 24 months
  • Missed mortgage/secured loan repayments: 0 in 12 months
  • Missed unsecured loans/product repayments: 0 in 12 months
  • Active payment arrangements: Nil

Additional exclusions: applicants who're currently in arrears or have historically defaulted on a product supplied by any other Chetwood Financial brand.

Affordability

Interest coverage ratio (ICR)

The minimum amount of rental cover (ICR) is dependent on the applicant’s income tax band (highest tax band on joint applications) at the rates shown below:

  • Basic rate taxpayers: 125%
  • Higher and additional rate taxpayers: 140%
  • Limited companies: 125%

The applicant’s tax band should be based on all validated current income plus gross rental income (excluding any deductions) from all rental properties, including the security. Refer to our buy to let calculator for further guidance.

The interest rate used in the ICR calculation is determined by the chosen product as follows:

  • 5 year fixed rates assessed at product rate
  • Variable rates or short-term fixed rates assessed at product rate plus 2%. Minimum 5.50%
  • Where the applicant is remortgaging an existing buy to let loan without additional capital raising, then the ICR can be calculated using the product rate
  • Where more than the rental income is needed to meet the minimum rental cover requirements, we may reduce the loan amount accordingly
Accountant qualifications

We only accept accounts prepared by accountants with the following qualifications:

  • Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified
  • Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified
  • Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified
  • Association of Authorised Public Accounts (AAPA): AAPA qualified
  • Chartered Institute of Taxation (CIOT): CTA qualified
  • Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified
  • Association of International Accountants (AIA): AIA/FAIA qualified
  • Institute of Financial Accountants (IFA): FFA
  • Chartered Accountant (CA): CA qualified
Age

Minimum age:

  • 21. Second applicant can be aged 18 provided first applicant is aged 21 or above

Maximum age:

  • 85 at the end of the mortgage term
  • 75 at the end of the mortgage term for first-time buyer applications

B

Building warranty

For new build properties and those less than 10 years old, a building warranty from one of the providers shown below should be in place:

  • Advantage HCI
  • Aedis Warranties
  • Ark Residential New Build Warranty
  • BOPAS
  • Build Assure
  • Building Life Plans
  • Buildzone
  • Checkmate (Castle 10)
  • Global Home Warranties
  • International Construction Warranties (ICW)
  • LABC
  • NHBC Guarantee
  • One Guarantee
  • Premier Guarantee Scheme
  • Professional Consultants Certificate (previously Architect’s Certificate)
  • Protek
  • The Q Policy
  • Zurich Municipal 'New Build'

Please note that we're unable to accept retrospective building warranties.

C

Modern methods of construction

Modern methods of construction

  • A warranty is required for all properties less than ten years old

Applications where the property has been constructed using modern methods of construction can be accepted where the valuer is satisfied that the property represents suitable security. In addition, the property must have been constructed by one of the following:

  • Barratt Developments
  • Berkeley
  • Bellway
  • Bloor Homes
  • Bovis Homes
  • CALA Homes
  • Crest Nicholson
  • Galliford Try
  • Persimmon
  • Redrow
  • Taylor Wimpey
Criminal convictions

Criminal convictions must be spent, as defined under the Rehabilitation of Offenders Act

Capital raising

Capital raising through a remortgage is acceptable where the applicant has sufficient equity in an existing property.

The following are acceptable reasons for capital raising:

  • Debt consolidation
  • Home improvements
  • Purchase of investment property
  • School/education fees
  • Transfer of equity

The following are not acceptable reasons for capital raising:

  • Payment of tax bill
  • Speculative investments (e.g. cryptocurrency)