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Lending Criteria.

Our criteria is split into residential and buy to let, so use the options below to find the criteria you need.

Maximum debt to income ratio

Indicates the maximum potential debt to income (DTI) ratio we might accept. For example, an applicant has outstanding unsecured debts of £26,000 and a salary of £40,000. Therefore their DTI is 65%. This criteria indicates if we have a maximum and if so what it is.

We do not have a maximum DTI ratio, each case is subject to the assessment of an individual underwriter

Maximum Ground Rent (as % of Property Value/Purchase Price)

Indicates if we have a maximum threshold, and if so what it is, that the ground rent on a leasehold property cannot exceed measured against the property value. For example, Applicant ‘A’ is purchasing a leasehold flat valued at £100,000 that has a ground rent payable annually of £100. This ground rent equates to 0.1% of the property value. Lender ‘A’ has no maximum threshold on ground rents and therefor Applicant ‘A’ is able to proceed with a mortgage application on this property.

We will only lend if the Ground Rent is £250 or less (£1,000 or less if in London).

Maximum Loan Size Retirement Interest Only (RIO)

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what our maximum loan size is for Retirement Interest Only (RIO) applications.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Maximum Loan to Value (LTV) for Interest Only mortgages

Indicates if we can consider Interest Only lending on residential mortgages and if so up to what loan to value (LTV). Take care to check other factors such as:

Is there a minimum equity requirement?
Is their a minimum income requirement?
Is there a minimum property valuation?
Is the repayment vehicle acceptable to us?
Can any borrowing over the stated max LTV be taken on a repayment basis?

Please note we are currently restricted to £500,000 on loans where any element is on interest only.

Please see below the acceptable repayment vehicles and the LTV limit:

Pension – 70% LTV
Stocks &Shares ISA – 70% LTV
Endowment – 70% LTV
Second Property – 70% LTV
Other Investments – 50% LTV
Mortgaged Property – 50% LTV with min 200k equity.

Appropriate documentary evidence must be supplied to support the repayment strategy. Where any element of a residential mortgage is interest only (i.e. full interest only or part interest only and part capital and interest) then the following loan to values apply:

Maximum loan to value 80% up to retirement and into retirement (up to 70% on interest only subject to a suitable repayment vehicle as above, the remainder on capital and interest)
Maximum loan to value 50% if already retired (regardless of repayment vehicle).

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Purchases

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum loan to value (LTV) for Retirement Interest Only (RIO) purchase applications.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Remortgage Balance Swap

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum loan to value (LTV) for Retirement Interest Only (RIO) remortgage applications where there is no element of capital raising and it is a simple balance swap.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Maximum Loan to Value (LTV) for Retirement Interest Only (RIO): Remortgage with Capital Raising

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Maximum Mortgage Arrears in last 24 Months

Indicates if we can potentially accept residential applications from an applicant who has mortgage arrears in the past 2 years and if so what is the maximum number of missed payments in the past 2 years that can be accepted.

We can potentially accept applicants with unsecured arrears in the past 24 months but this is dependent on the LTV of the case and how many.

Maximum number of applicants allowed

Indicates the maximum number of applicants able to go on a mortgage application.

We will accept up to 4 applicants on an application. When assessing an application with more than 2 applicants, we will only use the income for the two highest earning.

Maximum number of applicants income used for affordability

Indicates how many applicants we can factor into the affordability calculation.

When assessing an application with more than 2 applicants, we will only use the income for the two highest earning

Maximum Number of CCJs (Satisfied)

Indicates if we can consider residential applications from applicants with previously satisfied CCJs and if so what the maximum allowable number registered against an applicant is. For example, applicant ‘A’ has 3 previously satisfied CCJs in the past 6 years and Lender ‘A’ says the maximum number they will allow is 2 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total value and other adverse credit.

We can consider applicants with up to 1 satisfied CCJ. If you have multiple CCJ’s, or your CCJ is over £500, you will need to refer this to the Business Development Team. Multiple CCJ’s that equate to over £1,000 may not be accepted so please refer.

Maximum Number of CCJs (Unsatisfied)

Indicates if we can consider residential applications from with unsatisfied CCJs and if so what the maximum allowable number registered against an applicant is. For example, applicant ‘A’ has 3 previously unsatisfied CCJs in the past 6 years and Lender ‘A’ says the maximum number they will allow is 2 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total value and other adverse credit.

We will not consider applicants with unsatisfied CCJs.

Maximum Number of Defaults (Satisfied)

Indicates if we can consider residential applications from applicants with previously satisfied Defaults and if so what the maximum allowable number registered against an applicant is. For example, applicant ‘A’ has 3 previously satisfied Defaults in the past 6 years and Lender ‘A’ says the maximum number they will allow is 2 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total value and other adverse credit.

We can consider applicants with up to 1 satisfied Default. If you have multiple Default’s, or your default is over £500, you will need to refer this to the Business Development Team. Multiple Default’s that equate to over £1,000 may not be accepted so please refer.

Maximum Number of Defaults (Unsatisfied)

Indicates if we can consider residential applications from with unsatisfied Defaults and if so what the maximum allowable number registered against an applicant is. For example, applicant ‘A’ has 3 previously unsatisfied Defaults in the past 6 years and Lender ‘A’ says the maximum number they will allow is 2 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total value and other adverse credit.

We will not consider applicants with unsatisfied Defaults.

Maximum number of storeys considered for lending on ex local authority flats

Indicates the maximum number of stories we can consider when lending on ex-local authority high rise flats.

We are not able to lend on ex local authority flats unless on a Right to Buy application

Maximum number of storeys considered for lending on flats

Indicates the maximum number of stories we can consider when lending on high rise flats.

Maximum number of storeys we can consider is 7.

Maximum number of stories where no lift is present

Indicates the maximum number of storeys we can consider when lending on flats when there is no lift access.

We will only consider flats with no lift access up to 5 storeys

Maximum Term (Years)

Indicates the maximum term a mortgage can be taken over.

Our maximum term for residential mortgages is 40 years.

Maximum Term (Years): Retirement Interest Only (RIO)

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what is the maximum term for Retirement Interest Only (RIO) applications. Lenders do not have to set a fixed term for the mortgage and so the repayment date can be when the borrower dies or goes into care, as with Lifetime Mortgages.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Maximum Unsecured Arrears in last 24 Months

Indicates if we can potentially accept residential applications from an applicant who has unsecured arrears in the past 2 years and if so what is the maximum number of missed payments in the past 2 years that can be accepted.

We can potentially accept applicants with unsecured arrears in the past 24 months but this is dependent on the LTV of the case and how many. This is reviewed on a case by case basis.

Maximum Value of CCJs (Satisfied)

Indicates if we can potentially consider residential applications from applicants with previously satisfied CCJs and if so what the maximum allowable value of all registered against an applicant is. For example, applicant ‘A’ has 3 previously satisfied CCJs in the past 6 years totaling £1,230 and Lender ‘A’ says the maximum value they will allow is £500 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total number registered and other adverse credit registered against the applicant.

We can consider applicants with satisfied CCJs up to a maximum value of £500. If you have CCJ’s over £500 please contact the Business Development Team to discuss. Please note that if your CCJ is over £500 or if you have multiple CCJ’s that equate to over £1,000 you will need to refer.

Maximum Value of CCJs (Unsatisfied)

Indicates if we can consider residential applications from applicants with unsatisfied CCJs and if so what the maximum allowable value of all registered against an applicant is. For example, applicant ‘A’ has 3 unsatisfied CCJs in the past 6 years totaling £1,230 and Lender ‘A’ says the maximum value they will allow is £500 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total number registered and other adverse credit registered against the applicant.

We will not consider applicants with unsatisfied CCJs.

Maximum Value of Defaults (Satisfied)

Indicates if we can potentially consider residential applications from applicants with previously satisfied Defaults and if so what the maximum allowable value of all registered against an applicant is. For example, applicant ‘A’ has 3 previously satisfied Defaults in the past 6 years totaling £1,230 and Lender ‘A’ says the maximum value they will allow is £500 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total number registered and other adverse credit registered against the applicant.

We can consider applicants with satisfied Default up to a maximum value of £500. If you have Default’s over £500 please contact the Business Development Team to discuss. Please note that if your Default is over £500 or if you have multiple Default’s that equate to over £1,000 you will need to refer.

Maximum Value of Defaults (Unsatisfied)

Indicates if we can potentially consider residential applications from applicants with unsatisfied Defaults and if so what the maximum allowable value of all registered against an applicant is. For example, applicant ‘A’ has 3 unsatisfied Defaults in the past 6 years totaling £1,230 and Lender ‘A’ says the maximum value they will allow is £500 registered on the applicants credit file. Therefore applicant ‘A’ would be unable to apply for a mortgage with Lender ‘A’ at this time. Other factors may also be factored in such as (but no limited to) total number registered and other adverse credit registered against the applicant.

We will not consider applicants with unsatisfied Defaults.

Minimum Income Requirement

Indicates if we have a minimum income requirement for residential mortgage applications and if so what it is.

We do not have a minimum income requirement for general residential cases. We do have a minimum income requirement of £20,000 for applicants that are retired.

Minimum Length of Time in Secondary Employment (in Months)

Indicates if we can consider income from secondary employment and if so what is the minimum requirement (in MONTHS) that the applicant must have held the position for.

We can consider applicants secondary employment using 50% of this income, subject to a minimum of 6 months in the role.

Minimum Loan Size

Indicates the minimum loan size (if there is one) that we accept for new applications.

Our minimum loan size across all products is £75,000.

Minimum Loan Size Retirement Interest Only (RIO)

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so what the minimum loan requirement for Retirement Interest Only (RIO) applications is.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Minimum Percentage of Properties under Private Ownership on Ex-Local Authority Blocks of Flats

Indicates if we can potentially lend on a ex-local authority flat/apartments and if so is there a minimum percentage in the block that must be privately owned.

We will only lend on Ex Local Authority flats if they are looking to place a Right To Buy application.

Minimum period background property let before can be ignored (months)

Indicates the minimum period (in months) any background properties that are Let or to be Let must have been Let for before they can potentially be discounted from a commitment point of view for affordability purposes.

We do not have a minimum number of months but we will need a copy of the AST which is in place if the property is already let and an ARLA letter if it’s to be let.

Minimum Property Value

Indicates if we have a minimum property value we require for new applications.

Standard purchases and remortgages have a minimum property value of £75,000. All other applications types have a minimum property value of £100,000

Minimum Property Value for Retirement Interest Only (RIO)

This criteria indicates if we offer Retirement Interest Only (RIO) mortgages and if so if we have a minimum property value requirement.

Retirement Interest Only (RIO) mortgages are not available via Suffolk Building Society.

Minimum remaining lease at application

Indicates the minimum required lease remaining at the date of application we can potentially accept. For example,

If property is leasehold there should be a minimum of 85 years remaining on the lease at the commencement of our advance.

Minimum remaining lease at end of term

Indicates the minimum required lease remaining at the end of the mortgage term we can potentially accept. For example, Alex is looking to purchase a flat which currently has a remaining lease term of 90 years and wishes to take out a mortgage over 20 years. Therefore his remaining lease at the end of the mortgage term will be 70 years (90-20=70).

Our minimum lease at the start of the loan is 85 years

Minimum Term (Years)

Indicates the minimum term a mortgage can be taken over.

The minimum term is six years.

Minimum Time Owner Occupier (in Months)

Indicates if we have a minimum requirement that an applicant must have been an owner occupier for (in MONTHS) in order to be considered for a residential mortgage.

We require applicants to have been an owner occupier for at least 6 months.

Months passed where Mortgage Arrears can be ignored

Indicates if we can potentially ignore mortgage arrears that are historic and if so at what point they can potentially be ignored when assessing residential mortgage applications.

We can potentially ignore previous mortgage arrears that are older than 48 months old on a case by case basis.

Mortgage guarantee scheme (2021)

Indicates if we can accept application on the Mortgage guarantee scheme (2021)

We are unable to accept applications on the Mortgage guarantee scheme (2021)