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Birmingham Midshires Mortgage lending criteria

Birmingham Midshires Mortgage lending criteria

Birmingham Midshires Lending Criteria

Notes: The following information may contain errors. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

Mortgage Product

Advances
Upto 1,000,000 75% LTV (Rmg 75%)

Notes
Mortgage is Portable
You can keep this product if you move to a new property and take out a new mortgage with Birmingham Midshires, provided that the new mortgage is for the same amount and is taken out within 6 months of repayment of this loan. If this occurs, any early repayment charges (detailed above), will not be payable.
However, if the new mortgage is taken out in different names Birmingham Midshires will not waive or refund these early repayment charges without the written consent of all original borrowers.
If either the scheme or your circumstances change, you may not be able to keep this product, and any early repayment charges (detailed above), will be payable.
When moving house you will be unable to keep this product if your level of adverse credit increases beyond the maximum allowed.
- Mortgage is NOT for First time buyers

The maximum LTV for Buy to Let new build houses, flats and apartments including newly converted property, refurbished property, previously unoccupied and/or property sold for the first time on the open market in its current state is 75%.

Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.

Sub-sales and back to back transactions are not acceptable. A sub-sale occurs when a property is bought and then sold on within six months, i.e. the borrower is buying the property from someone who has themselves bought the property less than six months before. A back to back transaction is a type of sub-sale where the intervening seller buys from the original seller and sells on to the borrower on the same day or within a few days. We also regard as sub-sales cases where the seller acquires the freehold (or superior leasehold) title to the property, which they then immediately sell on to the borrower by the grant to them of a lease (or sub-lease).

For Landlords with student lets, the maximum number of tenants on one Assured Shorthold Tenancy Agreement (AST) will be five in line with the current lending policy. Applications from landlords with tenants on any benefits will now be accepted. This includes housing benefit, rent rebate, DSS claimants or rent allowance.

No available for First Time Buyers

Buy to Let : Accepted
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 75% LTV

Fees


Varies; Can be Added
Booking : None

Early Repayment Charges
During fix/discount

Higher Lending
None

Valuation
Basic:
upto 50,000 - 265
upto 100,000 - 305
upto 150,000 - 340
upto 200,000 - 380
upto 300,000 - 455
upto 400,000 - 525
upto 500,000 - 590
upto 600,000 - 645
upto 700,000 - 705
upto 800,000 - 760
upto 900,000 - 815
upto 1,000,000 - 870
upto 1,200,000 - 985
upto 1,400,000 - 1095
upto 1,600,000 - 1210
upto 1,800,000 - 1320
upto 2,000,000 - 1435
upto 2,200,000 - 1545
upto 2,400,000 - 1660
upto 2,600,000 - 1770
upto 2,800,000 - 1885
upto 3,000,000 - 1995
upto 3,200,000 - 2110
upto 3,400,000 - 2220
upto 3,600,000 - 2335
upto 3,800,000 - 2445
upto 4,000,000 - 2560
upto 4,200,000 - 2670
upto 4,400,000 - 2785
upto 4,600,000 - 2895
upto 4,800,000 - 3010
upto 5,000,000 - 3120
upto 5,500,000 - 3400
upto 6,000,000 - 3685
upto 6,500,000 - 3965
upto 7,000,000 - 4245
upto 7,500,000 - 4530
upto 8,000,000 - 4810
upto 8,500,000 - 5090
upto 9,000,000 - 5370
upto 9,500,000 - 5650
upto 10,000,000 - 5935


Homebuyers:
upto 100,000 - 490
upto 150,000 - 520
upto 200,000 - 570
upto 300,000 - 690
upto 400,000 - 820
upto 500,000 - 965
upto 600,000 - 1105
upto 700,000 - 1250
upto 800,000 - 1390
upto 900,000 - 1535
upto 1,000,000 - 1675
upto 1,200,000 - 1875
upto 1,400,000 - 2080
upto 1,600,000 - 2280
upto 1,800,000 - 2485
upto 2,000,000 - 2685
upto 2,200,000 - 2890
upto 2,400,000 - 3090
upto 2,600,000 - 3290
upto 2,800,000 - 3495
upto 3,000,000 - 3695
upto 3,200,000 - 3900
upto 3,400,000 - 4100
upto 3,600,000 - 4305
upto 3,800,000 - 4505
upto 4,000,000 - 4705
upto 4,200,000 - 4910
upto 4,400,000 - 5110
upto 4,600,000 - 5315
upto 4,800,000 - 5515
upto 5,000,000 - 5720
upto 5,500,000 - 6225
upto 6,000,000 - 6730
upto 6,500,000 - 7235
upto 7,000,000 - 7740
upto 7,500,000 - 8245
upto 8,000,000 - 8750
upto 8,500,000 - 9255
upto 9,000,000 - 9760
upto 9,500,000 - 10270
upto 10,000,000 - 10775

Min Valuation 40000
For properties valued over 1 million please refer to Birmingham Midshires for the valuation fee.

The lender will add the Mortgage Account Fee to the loan and for a repayment or part repayment mortgage will include an element of it within the monthly payments to be repaid over the term. No interest will be charged on this fee. For a KFI with the fee added, please contact the lender.

Valuation Fees shown include VAT and a 100 admin fee.

Homebuyers Report Fees available.

Lender operates a panel of valuers.

For properties in Scotland, Scottish Single Survey accepted providing valuer is on the Lender's panel and it is less than 3 months old.


Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lender Conveyancing Fee - 295.00 Payable on completion. A non refundable fee to your conveyancer due before the loan starts. The figure quoted here is an estimate, the total cost of conveyancing may be higher.
Mortgage Account Fee - 295.00 Payable on completion. A Mortgage Account Fee is payable on completion and is non refundable.

Acceptable Property Types


Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Yes
Timber Framed Yes
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building Yes

Not Accepted
New Build acceptable.
The deposit for any purchase should come from the applicant(s) own resources. However, a builder's deposit up to a maximum of 5% of the purchase price is allowable on applications where the LTV does not exceed 75% on a new build property. Where there is a purchase at undervalue, the maximum loan will be based on the discounted purchase price. The valuer must be aware of any incentive and refer to this in the valuation report.

Refer to lender for further details.

Flats over shops and flats over 4 stories may be considered on merit.

Flying Freehold and Commonhold may be considered on their merits.

Unacceptable Property Types: Freehold flats, mobile homes, houseboats, self-build, commercial property, and property on which buildings insurance cannot be arranged.

BM will Consider lending on Leasehold Maisonettes but not Freehold.

New Build accepted subject to terms and conditions, please refer to lender.

The maximum LTV for Buy to Let new build houses, flats and apartments including newly converted property, refurbished property, previously unoccupied and/or property sold for the first time on the open market in its current state is 75%.

The property may be let under a single Assured Shorthold Tenancy agreement which restricts the tenant from sharing, assigning, sub-letting or making alterations to the property. The Fixed Term must not be less than 6 months and not more than 12 months.
The maximum number of bedrooms allowed for a Buy to Let property is 5.

Timber framed properties are acceptable at the discretion of the valuer and based on their individual merits.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements


Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan 25,001/Rmg 25,001
Max Loan 1,000,000/Rmg 1,000,000
Max Portfolio of BTL Loans none
Min Age 25 years
Max Age 75 years
Min Term 5 years
Max Term 40 years
PLEASE CHECK THE BTL CRITERIA BELOW BEFORE SUBMITTING AN APPLICATION:

The applicants must currently own a property in the UK; this will need to be validated before an offer can be made.

Where possible, we will use the credit reference search to validate property ownership. If this information is not available via the credit reference file or the property is unencumbered we may request:
- A copy of the land registry certificate which must show at least one of the applicants names or:
- A copy of a recent mortgage statement issued within the last 3 months or:
- A copy of a mortgage statement within the last 3 months showing the customer’s mortgage payment and payee

A 2,000,000 lending limit applies to all Buy To Let and Let to Buy borrowing across the Retail Division of Lloyds Banking Group (The Retail Division of Lloyds Banking Group consists of Bank Of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows).

A maximum of 3 properties applies to all Buy To Let and Let to Buy lending across the Retail Division of Lloyds Banking Group (The Retail Division of Lloyds Banking Group consists of Bank Of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows).

Maximum lending on each individual Buy to Let property of 1 million.

Confirmation of anticipated rental income will be provided by the valuer as part of the valuation.

Minimum acceptable property value or purchase price (whichever is the lower) is 40,000.

The property may be let on a single assured shorthold tenancy or to a company on a corporate let. The maximum term is 12 months.
Our consent is not required to renew the tenancy.

The maximum number of occupants is 5. They must all be party to the agreement. It is the landlords responsibility to ensure that all legislation is complied with including (but not restricted to) legislation relating to Tenancy Deposit schemes and HMOs (Houses in Multiple Occupation).

The maximum number of bedrooms allowed for a Buy to Let property is 5.

Multiple tenancies (where each tenant signs a separate agreement and/or has separate facilities) are not acceptable.

An application will be processed unless this applicant exceeds either the 2,000,000 Buy To Let lending limit or the number of properties allowed, or does not meet minimum income requirement.

The method for repaying the interest only element of the loan must be specified.

For Landlords with student lets, the maximum number of tenants on one Assured Shorthold Tenancy Agreement (AST) will be five in line with the current lending policy. Applications from landlords with tenants on any benefits will now be accepted. This includes housing benefit, rent rebate, DSS claimants or rent allowance.

Buildings Insurance required.
Foreign Citizens Not Accepted
Ex-Patriates Not Accepted

Income Multipliers
Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5%.

Min months in current position 3
Min months in continuous service 12
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit No

Outgoings
Rental calculation - 125% @ PAYRATE or 125% of 5%, whichever is higher.'
For certain applications, employment verification will be requested:
Self Employed:
- Latest 2 years tax assessments (SA302s or online equivalents) accompanied by corresponding Tax Year Overviews. The most recent SA302 must be dated within the last 18 months
OR
Latest 2 years Business/Company Accounts.

Employed:
- Latest Payslip. Hand written payslips are not acceptable unless supported by the corresponding Bank Statements.

Retired:
- Latest Bank Statement
OR
- Latest Pension Statement


Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5%.
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 100% to income before multiply
Other Income - Irregular Add 100% to income before multiply
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments No
Non Contributory Pension No
Car Allowance No

Remortgage


Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered Acceptable

Remortgage applications not accepted where the customer has owned the property for less than 6 months.


Adverse Credit
CCJs : Refer to lender
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Acceptable, min months Discharged 72
Current IVA : Not Acceptable
Repossession : Acceptable, At least 72 months ago


The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :

- a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and The Lender.

- b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.

CCJ’s/Defaults:

The date the adverse was registered against the customer determines whether it needs to be recorded on MSP or not. Any CCJ’s/Defaults registered within the last 6 years (regardless of whether they are still outstanding or repaid) need to be recorded.

Arrears:

Mortgage arrears of one month or more within the last 6 years need to be recorded.
Arrears for any other debt, e.g catalogue/store card/loan/HP, of two months or more within the last 6 years need to be recorded.
A missed payment on a mobile phone account for example is not classed as arrears (as it does not exceed 2 months).

Bankruptcy/IVA/Debt Management Arrangement/Repossession:

If a customer has ever entered into one of the above arrangements within the last six years they must be recorded.
If the customer has ever had a property repossed it must be recorded regardless of when the event was registered, as must a bankruptcy restriction order if it is still outstanding.