Key Information
- Loans from £30,000 up to £1,000,000
- We'll consider your business’s performance and potential, not just your personal income
- We’ll consider other income you might have when we look at affordability and your ability to pay a mortgage on the home you want
- We don’t make our decision to lend based solely on your salary or dividends
- Minimum mortgage term is 5 years and maximum term is 40 years
- To apply, you need to be at least 18 years old and normally not more than 85 at end of mortgage term
Residential mortgages are available for owner occupied residential properties. All mortgages are subject to a suitable property valuation.
For property purchases in Scotland, we can normally use the property valuation contained in the sellers' Home Report provided that it’s no more than 3 months old (please speak with our Mortgage Advisers for further details).
For loans up to £400,000 - borrow up to 95% of the property valuation or purchase price (whichever is lower).
For loans up to £600,000 - borrow up to 80% of the property valuation or purchase price (whichever is lower).
For loans up to £800,000 - borrow up to 70% of the property valuation or purchase price (whichever is lower).
For loans up to £1,000,000 - borrow up to 60% of the property valuation or purchase price (whichever is lower).
Applicants must be at least 18 years old on application and normally not more than 85 at end of mortgage term.
Minimum mortgage term is 5 years and maximum term is 40 years.
All mortgage applications are based on affordability.
- For loans less than 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4.5 x income
Joint applicants: Main income x 4.5 plus second income x 1 OR Joint income x 4 - For loans over 80% of the property valuation or purchase price (whichever is lower) we’ll lend up to:
Single applicant: 4 x income
Joint applicants: Main income x 4 plus second income x 1 OR Joint income x 3.75
Our flexible underwriting means we assess all applications on an individual basis. The amount we’ll lend will depend on your circumstances. Any existing financial commitments will be taken into consideration when calculating affordability.
Guarantor Mortgages are available - please read the section about specialist mortgages for all the details.
We offer a range of competitive interest rates to choose from. Check our interest rate pages for details.
- Capital and Interest
- Interest only - available up to 75% of the property value or purchase price (whichever is lower) with a maximum loan size of £350,000. When you apply, we’ll need confirmation that you have plans in place to pay off your mortgage at the end of the term and we’ll ask you about your plans occasionally while you have a mortgage with us. Examples of these plans are normally endowment policies; stocks and shares ISAs; pension lump sums; and second/investment properties
A Standard Security (Scotland) / First Legal Charge (England) will be taken over the property being purchased as security for the mortgage borrowing.
If you make overpayments of 10% or more of the loan amount in any 12 month rolling period during the initial period, and depending on which mortgage you have, the charges apply as follows:
- For our 2-year mortgage, the charge will be equivalent to 3% of the outstanding balance amount in year 1, and 2% in year 2.
- For our 3-year mortgage, you will need to pay a charge equivalent to 3% of the outstanding balance amount in year 1 and 2 and 2% in year 3.
- For our 5-year mortgage, the early repayment charge will be:
o 5% of the outstanding balance in the 1st year
o 4% of the outstanding balance in the 2nd year
o 3% of the outstanding balance in years 3 & 4
o 2% of the outstanding balance in year 5
After the initial period, the Society will not make an early repayment charge if you move to Standard Variable Rate and choose to repay the mortgage. However, there will be certain redemption fees that will need to be paid (see our Details of Charges leaflet for more information).
You’ll need to provide evidence that buildings insurance for the property is in place before we can release funds.
Working for yourself can mean that your income varies. If you can’t show a regular income, it could be difficult to get a mortgage with most traditional lenders and getting a better deal on an existing mortgage could be tricky too.
We look at the bigger picture
Whether you’re a sole trader, director of a limited company, working in a partnership, or even a professional within an established practice, we’ll look at the retained profit and net profit performance of your business – not just your salary and dividends.
Flexible underwriting means we’ll assess all types of self-employment and we’ll work with you and your accountant to fully understand the business.
Our Entrepreneur Mortgage is Suitable for:
sole traders; company directors; trading in a partnership; self-employed contractors with their own limited company; and self-employed professionals (e.g. solicitors, GPs, medical doctors, accountants) in their first year of self-employment within an established partnership or practice
Income requirements for mortgages more than 80% loan to value
- For sole traders or partners:
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We’ll consider the average share of the last 3 years’ net trading profit.
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Where there is only a 2-year track record, we may also take into account an estimate or projection for the coming year, as long as:
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Annual turnover is level, or progressively rising.
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Net profit (and share of net profit) is level or progressively rising.
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Income drawn from the business does not exceed the share of net profit in any accounting period.
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- For directors of a limited company:
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We’ll consider the average salary/dividend for the last 3 years and any retained profit.
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Where the company has only a 2-year track record, we may also take into account an estimate or projection for the coming year, as long as:
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Annual turnover is level, or progressively rising.
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Net profit is level or progressively rising.
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Salary plus gross dividends are level or progressively rising.
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Income requirements for mortgages of 80% or less loan to value
For sole traders, partners and company directors:
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Our underwriting team will assess the sustainable income, with reference to at least one year of financial history (supported by either final accounts, or an accountant’s certificate) and a projection for the coming year.
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The type of business and number of shareholders can influence any mortgage decisions.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.