We provide individually underwritten mortgages. That way we get to completely understand the needs of the customer. We deal exclusively with intermediaries and we are experienced in dealing with complex mortgage applications. Our pragmatic and sensible approach ensures mortgage applications are individually assessed using common-sense.
WHY CHOOSE US?
We take an individual approach to your application
• An individually-assessed, common-sense approach using good judgment and sound lending practice
• Ability to refer to our underwriting team for pre-approval
• Our BDMs are extremely knowledgeable about our criteria and well versed on complex cases
We take a flexible view on the merits of your case
• We look at the overall quality of your case, we don’t just focus on ‘what’s wrong with it’
• No upper age restriction
• Up to 4 borrowers per application
• We want to say yes!
We look at many types of complex income when assessing affordability
• We will use 100% of bonus, commission and overtime if 2 years can be proved
• Pension, rental income, investment income, trust income and maintenance all considered at 100%
HOW ARE WE DIFFERENT?
Everyone says they make the complex more simple… We have the expertise to manage complex mortgage applications.
Working situations have changed significantly in recent times. Our policy of lending to people in different types of employment has kept pace in an ever-changing environment.
We therefore lend to people who are employed, self employed and retired.
All of our mortgages are individually underwritten. We pride ourselves on being flexible and accommodating to the changing nature of income. We consider many income sources when determining mortgage affordability. These include salary, bonus and commission, self-employed income, pension and investment or trust income.
You can speak to our underwriters during the process. Our team have years of experience analysing complex customer circumstances. We aim to make the process and service as simple and personal as possible.
We take a flexible view on the merits of all cases and create specialist solutions for your clients.
If everyone’s circumstances were the same, the world would be a far less interesting place. This is especially evident when it comes to property.
A taste for unusual property shouldn’t be inhibited by being unable to finance it. That’s where we can help, we welcome those unusual circumstances.
OUR MORTGAGES –RESIDENTIAL
RESIDENTIAL
• Up to four borrowers per application
• Can accept income from all four borrowers
• Interest only available up to 75%
• Properties with an annexe intended for Let or use by friends or family are accepted. Up to 50% of the total floor area can be let
• We offer a manual underwriting process and work with you every step of the way
RESIDENTIAL LARGE LOAN
• Up to four borrowers per application
• Can accept income from all four borrowers
• Borrowing of £2.5M available up to 65%
RESIDENTIAL IN RETIREMENT
• Where any applicant is already retired or is above age 75 at the start of the mortgage
• Up to four applicants considered and not all applicants have to reside in the property
• Can accept income from all four borrowers
• Up to 70% Loan to Value available
OUR MORTGAGES –
RESIDENTIAL
Gifted deposits must be from a family member.
FOR THE BORROWER:
Guarantors accepted but must be a family member. We’ll also consider joint family borrowers without all parties needing to reside in the mortgaged property.
NO
No minimum property ownership. Not for auction bought properties, but for those who have either inherited or have had a TofE or who are exiting from a bridging facility.
Up to four borrowers per application (all four incomes will be assessed)
Provided that there is ongoing income to support the borrowing
IMPAIRED CREDIT
The Society accepts applications for residential owner-occupied mortgages from customers whose credit history falls within the following categories, from a limited panel of broker firms – please contact our BDM team to discuss availability.
For all other product areas, The Society does not usually accept applications from:
• Any applicant with County Court Judgements totaling more than £500 during the past three years
• Any applicant who has been in serious arrears (90 days or more overdue on a mortgage or loan) during the past two years
• Any applicant who has been subject to an IVA or Bankruptcy Order at any time within the last three years
OUR MORTGAGES –SPECIALIST
BUY-TO-LET
• Employed, self-employed or contractors
• First time buyers and first time landlords considered
• Non Owner Occupied properties considered
• Assured shorthold tenancies (minimum six months, maximum three years)
• Minimum income £30k for one applicant or net assets of £500k
• Corporate Lets considered
SELF-BUILD
• Barn Conversions. New Builds, Knock Down and ReBuild or the purchase of land with planning permission
• New Builds on owner occupied land
• We consider flexible construction types (valuer comments dependent)
• Self-build retention releases are not linked to stages
• 65% LTV for loans up to £2M, available anywhere in England or Wales
• 75% LTV for loans up to £999,999, where the property is in a prime area and the build project is professionally managed
• Up to a maximum of 3 properties being built, one to be subsequent main residence
HOLIDAY LET
• 90 days personal usage allowance per annum
• Airbnb considered
• We lend in town and city centres as well as coastal areas
• We lend on properties above commercial units
• Top slicing
• Minimum income of £30,000 required
• Up to 3 properties on one title considered
• 75% LTV available on IO and 80% available on repayment
HOLIDAY HOME/SECOND HOME
• We consider a range of incomes, including pension, trust, investment and maintenance as well as 100% of bonuses, overtime and commission (2 years proof required)
• We consider latest years income for self employed applicants
• No maximum age
• 75% LTV available on IO and 80% available on repayment
OUR MORTGAGES –SPECIALIST
PROPERTIES -
WE CONSIDER ALL THESE…
With two kitchens (dependent upon usage)
Unique properties including Grade II listed properties and thatched
Self-build properties, either a knock down and re-build or the purchase of a piece of land with planning permission
Refurbishment, i.e. converting a house that is currently divided into 2 flats, back into one single dwelling
TWO OR THREE PROPERTIES OR FLATS ON ONE TITLE
Mixed commercial / residential properties where the residential area is over 50% of the total footprint
With a granny flat/annexe (or similar) which the applicant intends to use either for family and friends or to be let out on an AST or holiday let
Holiday Homes and Holiday Lets
Property with land considered
OUR LENDING CRITERIA GUIDELINES
These guidelines help brokers to easily determine whether their clients qualify for our range of specialist or residential mortgage lending solutions.
Some of our key mortgage offerings include:
• No upper age limit for lending into later life
• We can help contractors, self-employed and residential developments with complex income streams
• We will consider requests to raise finance against unencumbered property
• We lend in England and Wales only
*Applies to certain products and terms detailed in our Lending Criteria Guidelines.
How quickly can we deliver?
Each application we receive is assessed on its own individual merit. Our Business Development Managers respond to an agreement in principle within two working days.
OUR LENDING CRITERIA GUIDELINES
Financial Statements/Information
Financial information should be supported with the evidence detailed below:
Current Bank Account
Assets
• Above
£500,000 - most recent three months bank statements for main account
• Below
£500,000 – most recent one month’s bank statement for main account
• Savings, Investments, ISAs/PEPs, Unit / Investment Trust/OEICs, Shares, Pension Funds, Business Assets - recent statement or valuation
Residential Status
Residential status should be verified with the evidence detailed below:
Tenants
Property Type
• We require a statement for the last 12 months showing all rental payments
The Society will consider the following types of property:
Acceptable
Not Acceptable
Tenure Acceptable
• All conventional types of construction – brick/tile/stone/slate
• Flats – converted or purpose built
• Properties where high-alumina cement has been used in the construction
• Pre-cast, reinforced concrete houses designated as defective under Housing Act 1985
• Freehold, Studio or Bedsit flats
• Multiple occupancy property
• Property affected by subsidence
• Houseboats
• Any properties that the Society’s valuer does not consider suitable as security
• Freehold
• Leasehold (must have at least 50 years remaining at the end of the mortgage term)
• Share of freehold
INTEREST ONLY REPAYMENT STRATEGY
The following Interest Only strategies can be considered:
Sale of Owner-Occupied Property
Sale of HBS Security Property (Let/2nd Home)
Sale of Additional Property
(Non-HBS Security)
• Minimum Equity - £150k
• Maximum LTV - 75%
• Minimum Equity - £75k
• Maximum LTV - 75%
• Only acceptable where security property is BTL or Second/Holiday Home
• Maximum LTV - 75%
• Minimum Equity on HBS Security - £150k
• Current equity in additional property sufficient to repay HBS mortgage
• LTV on additional property is under 50% and equity exceeds £150k
• Property is in an area with a track record of strong demand/property values
Overpayments from Income & Bonuses
Investment
Inheritance
Convert to Repayment
• Maximum LTV - 75%
• Minimum Equity - £150k
• Maximum of 70% of current value if a lump sum invested in equities
• 100% of current value if savings in cash ISA or bank/building society savings account
• Maximum 70% of projected end value if regular investments/savings for at least the last 12 months
• Probate already granted
• Maximum LTV - 75%
• Minimum Equity - £150k
• Minimum Equity - £150k
• Maximum LTV - 75%
• Available for Self-Build only
Endowment
• With profits policy - up to 75% of the current surrender value
• Unit linked policy - up to 50% of the current surrender value
• Endowment policy within 10 years of maturity
• Assignment of policy
Pension Lump Sum
INCOME
The following types of income are acceptable subject to the related evidence being provided:
Employed Applicants
Self-Employed
Contractor
• Three months payslips and P60
• Two most recent P60s for any bonus payments, overtime or other allowances
• Tax Calculations and Tax Year Overview for the three most recent years, along with three most recent years’ accounts.
Business Plan/detailed explanation if the business has not been established for three years, is developing or the results fluctuate
• 12 months contracting is usually required but less can be considered if experienced in this profession.
• Minimum three months contract remaining
• Affordability based on five days/46 weeks
Lending into Retirement
Retired
Maintenance
Investment and Savings Income
Rental Income
Future Let
Trust Income
AFFORDABILITY
• Recent pension projections
• Pension statement or P60 for each individual pension
• A copy of the signed Court Order or
• Six months bank statements demonstrating the income, along with a letter confir ming the informal arrangement by the person paying the maintenance
• Three most recent Tax Calculations and Tax Overviews from HMRC
• Savings and/or investment statements over the last 12 months and bank statements for the last three months
• Three most recent Tax Calculations and Tax Overviews from HMRC
• Assured Shorthold Tenancy agreement
• We require confirmation from the Society’s Valuer regarding anticipated rental income (for proposed Security property)
• An appraisal letter from a local letting agent
• Legal document and bank statements for the last three months
Income multiples will be used as part of our initial assessment. Detailed income and expenditure analysis will be carried out once the full application is received. When assessing affordability, the Society will take account of:
• The income of the applicant, net of income tax and national insurance
• The applicant’s committed expenditure, basic essential expenditure and basic quality-of-living costs
• Minimum age 55 years
• Pension fund minimum value - £500k
• Maximum loan 75% of the allowable lump sum
• Affordability throughout the term at the Society’s Stress Test Rate
• Future changes to income and expenditure
• Income/expenditure analysis will be based on independent information
• Up to four applicants can be considered for a mortgage.
All four incomes will be assessed. (please refer regarding furlough income).
OUR CRITERIA
An enhanced broker journey is essential for us to provide you with functionality that can simplify the process, give you options and provide you with a full breakdown and detailed information of our criteria.
Our BTL and Residential mortgage criteria pages are a vital tool in providing you this information. Each page gives you any criteria policy notes, descriptions and value. There are categories and topics filters to help narrow your search and access the specific criteria necessary. You can also use the search toolbar for easy access.
WE SEE OPPORTUNITIES…
Within the intermediaries section of our website, you have access to functionality and materials which can enhance our service to you.
Alongside our affordability calculator and lending criteria, you can also access the following:
• Broker portal - Loans Origination
• Rate Card
• DIP Forms
• Packaging Guide
• Criteria Cards
• Recent Case Study
You can also stay in touch with us by opting in to receive our regular emails.
MORTGAGE AFFORDABILITY CALCULATOR
Our Mortgage Affordability Calculator is designed to provide you with an estimate of how much money may be borrowed, upon completing the necessary details.
Here are a few useful tips:
• Make sure you take a print copy for your records
• There are stages within the income/expenditure section where the figures required are annual and monthly –so be careful when inputting the figures
• There are Tool Tips added in some sections, if you feel the experience can be improved further, please do let the BDM know when requesting an Agreement in Principle
Please note that this calculator’s purpose is to act as a guide only. You can save and print your completed estimate and contact our Business Development team to discuss your requirements in more detail. You can find our affordability calculator in the intermediaries section of our website.
We do have some planned enhancements occurring, however, any constructive suggestions would be gratefully received. Please speak to our BDMs.
ONLINE APPLICATIONSLOANS ORIGINATION
You can submit a full mortgage application and any supporting documents by using our Loans Origination portal.
By using Loans Origination you can;
• Register as an intermediary
• Complete and submit a full mortgage application and supporting documents
• Provide any additional documents or information requested by our mortgage team once your application has been initially assessed
Please ensure you have referred your case to our Business Development team and have received an Agreement in Principle before submitting a full application – you can contact us at brokerteam@harpendenbs.co.uk
Please note our Online Application portal is for new mortgage applications only - If you have a client who is looking to increase the amount of their existing mortgage with us (and is not changing property), please complete the Additional Borrowing form from the intermediaries section of our website and email to brokerteam@harpendenbs.co.uk
ADDITIONAL BORROWING
Additional borrowing is available for property improvement and investment purposes:
• Residential Owner Occupied
• Buy to Let
• Holiday Let
• Corporate Let
• Let to Buy/Consumer BTL
• Second/Holiday Home
• Holiday Let
• Self-Build
MORTGAGES & PROC FEES
We pay broker proc fees for new and retained business, excluding additional borrowing.
Speak to our mortgage team for more information about our:
• Broker Proc Fees
• Customer Retention Programme
• Available Residential and Specialist Rates
Contact our team on: 01582 463133 or brokerteam@harpendenbs.co.uk
Solicitors
If a borrower wishes to use a firm with fewer than three principals, the Society will instruct the Society’s solicitors to act on its behalf (The Society’s solicitors will act on its behalf for all Self-Build applications).
