Criteria guide

The following circumstances outline when we may consider your client (subject to a full underwrite):

County Court Judgements (CCJs) and Defaults

These are acceptable where one of the following applies:

• All CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application.
• All CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration.
• The CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and satisfied prior to mortgage application.

Debt

An explanation of the debt must be submitted with the application together with the evidence of satisfaction (if applicable).

Arrears

Mortgage or rent arrears in the last 12 months aren’t acceptable.

Individual Voluntary Agreement (IVA) / bankruptcy

These may be accepted at the underwriter’s discretion.

Any bankruptcies or IVAs must be clear for at least three years, with no residual debt, and there can be no repossession as part of the order. Additional documents may be requested.

Repossessions

We’re unable to consider an applicant that’s had a repossession at any stage.

Maximum number of applicants: four

Age limits:

Minimum: 18

Maximum at end of term: 85

Application fee:

£145, payable at time of application.

Product fees:

Please see individual product pages.

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

• The company name
• The certifier’s name and their position within the company
• The certifier’s signature
• The date

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

ID and residency documents must be certified individually.

For more information about certification, please read our Anti money laundering guidelines.

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

Please see our Valuation fee scale for more information.

Prefabricated reinforced concrete (PRC).

The 1984 Housing Defects Act, which was later consolidated into Part XVI of the 1985 Housing Act, designated certain types of prefabricated reinforced concrete (PRC) dwellings as defective. Any PRC dwelling that hasn’t been repaired under a repair scheme originally licensed by PRC Homes Ltd is unacceptable.

A repaired property attached to an unrepaired property, or one that hasn’t been repaired to the same standard, is also not acceptable. Retrospective certificates are also not acceptable.

Applications classed as consumer buy to let (CBTL) can be considered.

An application cannot be considered until a criminal conviction is spent. Details of when convictions are classed as being spent can be found here: https://www.gov.uk/guidance/rehabilitation-periods

In relation to the Minimum Energy Efficiency Standards (as defined in The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 and all legislation and regulations in force and as amended from time to time in respect of the security property.

It is the responsibility of the Solicitor to ensure the Borrower is aware there is a requirement, and will a condition of the mortgage, for any properties rented out in the private rented sector (including existing lettings, new lets and renewals) to normally achieve the minimum energy performance rating (an EPC) set out in the relevant applicable regulations in force.

We won’t lend on more than 20% on any one block or development.

Where the block contains up to and including eight units or less, the application of the above 20% rule is entirely at the discretion of the underwriter.

First-time landlords are acceptable if they’re a residential homeowner and the property has no more than six beds.

Maximum 80% LTV applies for first-time landlords.

Flats in blocks must be of modern construction.

Maximum number of floors accepted as standard:

• Outside of London: 10 (plus ground floor).
• Within London: 20 (plus ground floor).

High rise blocks outside of standard criteria may be considered on a case by case basis as an exception at our discretion. This is subject to the valuer confirming that the position of the flat within the tower block doesn’t detrimentally impact on marketability.

If the property on which we’re lending is on the fourth floor or above, the property must have a lift.

Ex-local authority flats:

These can be considered where:

• There is an active and transactional market within the block/development
• The security isn’t in a pre-emption period

Basement flats can be considered on a case by case basis.

Minimum loan: £15,000 (subject to product availability).

Maximum loan: Unlimited.

These products are available on repayment and interest-only terms.

A breakdown outlining the purpose of the further advance is required.

Please read our product guide and Further Advance Application submission for further details.

Minimum property value: £75,000

HMOs/MUFBs with up to 20 bedrooms/units accepted.

Available in England and Wales.

Valuations

A physical valuation will be sourced from Connells via the standard process.

Communal space, amenities and fire precautions

We request our valuers to consider minimum room size and communal space standards in accordance with current RICS guidance.

The HMO must have the correct level of communal space, amenities and fire precautions as set out by the respective local authority.

Adapted HMOs

HMOs with 5 or 6 bedrooms that have been adapted (defined as having 3 or more bathrooms and/or 2 or more kitchens) or are within Article 4 areas may be valued on an investment basis on the Complex fee scale.

For more information about HMOs, please visit www.gov.uk/private-renting/houses-in-multiple-occupation

Licensing and Planning:

Licensing and planning will be checked during the legal process, please ensure the applicant and property have the correct planning and licensing prior to instructing valuation.

For purchases where the property has seven or more bedrooms, a copy of the licence or evidence that the applicant holds a licence on an alternative property must be received prior to release of funds. The terms of the licence must be complied with at all times.

For remortgages, the solicitor must confirm sight of a copy of the Licence prior to release of funds or confirmation that a HMO licence application has been made.

If your landlord customer is looking for a holiday let mortgage, our sister company InterBay could help. To find out more, visit InterBay.co.uk to speak with a member of their sales team.

Intercompany loans are an acceptable source of deposit, subject to the following criteria:

• The majority shareholder must mirror across the SPV and connected company.
• The loan needs to be repayable and a term agreed with a documented loan agreement (a copy will be required to be held on file).
• The loan term must not exceed that of the mortgage.
• The rate of interest applied should be HMRC’s ordinary rate of interest.
• Any monthly payment will be included in the ICR calculation.
• Connected company must not have any interest or charge over our security.

Japanese knotweed class C and D are acceptable. Class C will require a satisfactory management plan in place.

Accepted.

The applicant must provide evidence of the onward residential purchase by way of a mortgage offer prior to completion of the mortgage with us.

If required, director’s salary and dividends must be declared for the latest year's accounts. Retained profit isn’t taken into account.

Accepted accountant’s 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 Accountants (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/AFA qualified.

Limited companies

Accepted.

LLPs accepted.

Must be non-trading and must be limited to solely holding property and not engaged in wider activities.

Personal guarantees for limited company buy to let lending are required from all directors with up to four such individuals.

Personal guarantees for 100% of the loan must be provided by all LLP members.

Existing Kent Reliance for Intermediaries borrowers may switch a buy to let asset from an individual name into a limited company or an LLP.

Please contact our Servicing team at mail@krbs.com to discuss this further.

Newly formed companies are acceptable.

Non-UK based companies are not acceptable.

Legal representation

Any limited company or LLP application will need to select a solicitor from our limited company/LLP panel of approved solicitors.

Alternatively, an applicant can use their own solicitor however, we’ll instruct one of the solicitors from the approved limited company/LLP panel to act on our behalf, and the applicant will be liable for both sets of fees.

Separate representation (lender only)

Any cases that require separate legal representation for us will incur costs, which the applicant will need to pay.

The applicant will be liable for our costs where a case proceeds under separate representation.

Read our Tariff of mortgage charges document for details of our fees and charges.

Joint representation (lender and customer)

For any case where the applicant selects joint legal representation, the solicitor must be selected from our approved limited company/LLP panel who'll act on behalf of us and the applicant.

Read our Tariff of mortgage charges document for details of our fees and charges.

Terms available between 5 and 35 years.

Remortgages considered within six months.

Offers valid for three months.

New build offers valid for six months.

For more information, please see our product guide.

Minimum property value: £75,000 (subject to product criteria).

All mortgage payments must be paid by direct debit and the applicant must choose between the 10^th and 28^th days of the month for the payment to be collected.

Blocks of flats on a single freehold

We accept blocks up to and including 20 units.

For blocks up to and including six units, each individual flat within the block must be:

• Marketable in isolation either to owner occupier purchasers or investors.
• Fully self-contained, including separate services.
• Over 30m² gross internal area.

The block must:

• Be a complete, continuous freehold block.
• Benefit from the correct local authority consents.

The flats will be valued on a comparable basis considering transactions of other purpose-built and converted flats in the surrounding area. An aggregate value shall be reported, assuming the flats are to be sold on individual long leasehold titles.

If any of the flats don’t meet the above requirements, or if the valuer is of the opinion that there’s no, or a limited market for the units individually, the property won’t be recommended as suitable security. Unless a bespoke valuation report is requested by us, the Specialist valuation fee scale shall apply.

Blocks of 7-20 units on a single freehold can be considered if the applicant has a sufficient track record of managing such property. Each individual flat within the block must be:

• Marketable in isolation either to owner occupier purchasers or investors.
• Fully self-contained, including separate services.
• Over 30m² gross internal area.

The block must:

• Be a complete, continuous freehold block.
• Benefit from the correct local authority consents.

The flats will be valued on a comparable basis considering transactions of other purpose-built and converted flats in the surrounding area. An aggregate value shall be reported assuming the flats are to be sold in individual long leasehold titles.

If any of the flats don’t meet the above requirements, or if the valuer is of the opinion that there’s no, or limited market for the units individually, then the property will be valued as a single investment block. Unless a bespoke valuation report is requested by us, the Complex valuation fee scale shall apply.

New build, newly converted, and those under 10 years old

The block must benefit from a 10-year new homes warranty or UK Finance compliant Professional Consultant’s Certificate (PCC), with accompanying professional indemnity insurance. Retrospective PCCs aren’t acceptable.

Multiple houses on a single freehold

We can consider multiple houses on a single freehold. If each individual house is marketable in isolation, either to owner occupier purchasers or investors and fully self-contained, including separate services, the houses will be valued on a comparable basis, considering transactions of other houses in the surrounding area.

An aggregate value shall be reported assuming they are to be sold on individual freehold or long leasehold titles with appropriate or prudent lotting of gardens or other communal areas. If any of the houses don’t meet the above requirements, or if the valuer is of the opinion that there’s no, or limited market for the units individually, then the property will be valued as a single investment block.

Unless a bespoke valuation report is requested by us, the Complex valuation fee scale shall apply.

If any of the individual houses are to be used as HMOs/student lets, please refer to the HMO/student lets criteria.

New build properties are considered as those that:

• Are less than two years old (from the date of practical completion), and/or
• Haven’t been lived in.

New Build maximum LTV

Houses: maximum 85% LTV.*

Flats: maximum 75% LTV.*

*Subject to product availability.

Warranties

If the property is less than 10 years old, one of the following warranties must be in place:

• Advantage HCI
• Ark Residential New Build Warranty
• BOPAS (Build Offsite Property Assurance Scheme)
• Build Assure (New Homes Structural Defects Insurance)
• Building Life Plans
• Build Zone Structural Warranty
• Checkmate (Castle 10 New Home Warranty)
• Global Home Warranties
• Homeproof
• International Construction Warranties (ICW)
• LABC New Home Warranty
• Modern Methods of Construction (MMC) only
• N.H.B.C. guarantee
• Premier Guarantee Scheme (previously an Architect’s Certificate)*
• Premier Guarantee Scheme
• Protek
• The Q Policy
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI
• Zurich Municipal “New build”

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers, subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten. The solicitor acting for us should ensure an acceptable warranty is in place.

New build, newly converted, and those under 10 years old

The block must benefit from a 10-year new homes warranty or UK Finance compliant Professional Consultant’s Certificate (PCC), with accompanying professional indemnity insurance. Retrospective PCCs aren’t acceptable.

Modern methods of construction

Any off-site technology must be subject to the Build Offsite Property Assurance Scheme (BOPAS) in conjunction with an acceptable 10-year new homes warranty.

Accepted.

Definition of portfolio landlords

Portfolio landlords are defined as landlords with four or more mortgaged buy to let properties, including:

• Those that are applying for a fourth mortgaged property.
• Those looking to remortgage one of their existing four properties.

Submission process

The portfolio validation process will include an assessment of the wider portfolio ICR and must be a minimum of 125% ICR at 5.0% pay rate and a maximum of 85% LTV.

Additional information is required for portfolio landlords, including details of the borrower’s wider buy to let portfolio, which will be assessed as part of the underwriting process.

Please use our portfolio submission platform, the Buy to Let Hub, to submit this information.

We’ll also require a completed Business plan, cash flow and assets and liabilities form to support the borrower’s application. Without this, your application won’t be underwritten. Download our required documents checklist.

One month’s bank statement is required evidencing rent, mortgage payments and liquidity to cover voids.

If the applicant has their whole portfolio with OSB Group, we don't require a Buy to Let Hub submission.

The applicant must include all residential investment properties they have an interest in. This includes those they own in their sole name, own in joint names or are owned by a company of which they are a director or shareholder.

If the applicant is a limited company, properties owned by the company’s directors, or owned by other companies of which the directors/shareholders are a shareholder or director, should also be included.

You must include those currently held with OSB Group.

Commercial or semi-commercial properties, owner occupied loans or properties with bridging finance should be excluded from the portfolio.

We aim to get electronic proof of identity, but if documentation is required, we only accept postal copies and not internet printed documents.

We accept the following:

• Valid UK driving licence* - photocard (full or provisional) – if not used as proof of identity.
• Current bank/building society credit card statement issued by a regulated sector firm in the UK – includes bank or building society savings book - dated within the last three months.
• Current mortgage statement issued by a regulated financial sector firm in the UK - dated within the last 12 months.
• Utility bill (gas, electricity, etc.) - dated within the last three months.
• Multi-Media Bill – BT Bill, Sky TV, Virgin Media etc (landline/Broadband only - mobile not accepted) (the landline number must be the same as quoted on the application) - dated within the last three months.
• Local Authority Council tax bill - dated within the last 12 months.
• HM Revenue and Customs documents/tax summary (not, P45 or P60) - dated within the last 12 months.
• Vehicle Licence Reminder All - dated within the last 12 months.
• TV Licence or renewal/reminder letter All - dated within the last 12 months.
• DWP correspondence (state pension or state benefit books/notification) - dated within the last 12 months.

* In accordance with the DVLA regulations, you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of address, and therefore, other items may be requested.

Please ensure that all documentation is properly certified. Please see our Certification criteria for more information.

We aim to get electronic proof of identity, but if documentation is required, we accept the following:

• Valid UK passport.
• Valid non-UK passport - valid right to remain or right to reside should be present in the passport.
• Resident Permit (issued by Home Office) front & back required.
• Valid UK driving licence* – photocard (full or provisional).
• HM Revenue & Customs correspondence - (not P2,P45 or P60) - dated within the last 12 months.
• DWP letter confirming entitlement to pension - dated within the last 12 months.

* In accordance with the DVLA regulations, you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of identity, and therefore, other items may be requested.

Please ensure that all documentation is properly certified. Please see our Certification criteria for more information.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

• Amiqus
• CallCredit / TransUnion
• Credas
• Experian
• Equifax
• GBGroup
• LexisNexis
• Onfido
• TrustID
• Yoti

In general, properties above (or attached to) the following establishments won’t be accepted:

• Takeaways, restaurants and cafés.
• Bars and nightclub.
• MOT garages, or any property where industrial processes are carried out.
• Dry cleaners (where dry cleaning takes place on the premises).
• Nail bars.
• Tattoo parlours.
• Hairdressers.

This isn’t an exhaustive list. Please speak to your business development manager for more information.

Acceptability

Remortgages can’t be accepted for the following purposes:

• To shore up a business.
• To repay gambling debts.

Remortgages within six months

Remortgages will be considered where the security property has been owned for less than 6 months where the property has recently been inherited or subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:
• A schedule of works and evidence of expenditure.
• Confirmation that works have been completed to a suitable standard.
• Any necessary consents have been obtained.
• Confirmation that the property is marketable and mortgageable.

• In all instances, the property must be registered at HM Land Registry as owned by the applicant(s). Solicitor confirmation or TR1 are also acceptable during the application process.

• New-build properties excluded.
• All other standard criteria apply.

Rental income requirements are dependent on the property profile.

• Single dwellings.
• HMO with up to 6 lettable rooms
• Freehold block with up to 6 self-contained flats

Limited company rental cover – 125%

Personal name rental cover – 140%

• HMO with 7-20 lettable rooms
• Freehold block with 7-20 self-contained flats
• Multiple houses on a single freehold
• HMOs (5/6 bedroom) with investment valuation

Limited company rental cover – 145%

Personal name rental cover – 175%

Please refer to the ‘Buy to let product guide’ that can be found at here.

Download our mortgage application submission checklist.

UK/EU nationals accepted.

Other European Economic Area (EEA) Nationals and Non-EEA Nationals must also have been resident in the UK for a minimum of 36 months and provide evidence of permanent rights to remain in the UK. Must provide evidence of ongoing rights to reside by either a valid permanent residence document, or documents evidencing that ‘settled’ or ‘pre-settled’ status has been granted under the EU Settlement Scheme.

Applicants should have lived and worked in the UK for the last three years.

British Forces Post Office (BFPO) addresses are considered to be UK.

For more information about certification, please read our Anti money laundering guidelines.

Properties in England and Wales only.

A first legal charge is required.

New build, newly converted, and those under 10 years old

Please visit our New build, newly converted and properties under 10 years old section for more information.

Net profit before tax based on accounts for the latest year's accounts for sole traders and partnerships must be declared.

Accepted accountant’s 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 Accountants (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/AFA qualified.
• Chartered Accountant (CA).

The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Spouse/civil partner.
• Parents (including step-parents).
• Grandparents.
• Siblings (brother/sister).
• Daughter/son.
• Aunt/uncle.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan.
• The gift is non-refundable.
• The donor won’t have an interest in the property.

Should the gift originate from family living abroad (considered on a case by case basis), we require evidence of the funds showing in the applicant’s UK bank account.

InterCompany loans

For information on InterCompany loans, please click here.

Builders’ incentives

Builders’ incentives are acceptable.

Calculation

Builders’ incentives are deducted from the lower of the purchase price or valuation. The loan amount is based on the resulting lower total.

Vendor deposit

Vendor deposits are accepted.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation. The loan amount is based on the resulting lower total.

Unacceptable deposit sources

Cryptocurrencies – any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Students lets are acceptable. please refer to HMOs section for more details.

Properties must be let on one of the following:

• An AST.
• A contractual tenancy.

A fixed-term of 12 months can be considered up to 85% LTV

A fixed-term of up to 36 months can be considered up to 75% LTV when:

• The AST provides for a rent review every 12 months or less.

There must be a written tenancy agreement, which restricts the tenant from:

• Sharing, assigning, sub-letting, multi-letting, charging or parting with possession of all or any part of the property.
• Using the property other than as a private dwelling house.
• Making alterations to the property or allowing the property to fall into disrepair.

We don’t permit any sub-letting.

Freehold

Houses only.

Leasehold

The unexpired term of the lease must be at least 50 years at the end of the mortgage term and subject to a satisfactory valuation.

Where the lease has less than 85 years remaining at application stage the valuer will be required to evidence a transactional market for similar length leasehold properties in the area.

If the lease needs to be extended as part of the transaction this can also be considered.

Leasehold properties on an interest-only basis where the remaining lease term is less than 85 years will be accepted at a maximum 75% LTV.

In some circumstances, when calculating the amount we’re willing to lend, we’re able to accept the passing rent for a property, rather than the market rent confirmed by the valuer.

In order to use the passing rent to calculate the estimated loan amount, each of the following criteria must be met:

• Evidence of two rental periods (defined as two 6 month periods) through either bank statements or confirmation of rent received from an ARLA-registered letting agent.
• The passing rent adopted doesn’t exceed 10% of the market rent supported by the valuer.
• The passing rent is on a fully exclusive basis - it doesn’t include cost of utilities, council tax etc.
• The tenant is an independent third party.

Please see our Valuation fee scale for more information and our approach.

Standard valuation reports are for the sole purpose of enabling Kent Reliance to assess the suitability of the proposed security and to decide on the amounts (if any) that can be advanced on the mortgage and the report remains the property of Kent Reliance. The valuation fee collected is non-refundable unless explicitly stated on the associated illustration. On submission of an application you will need to accept the FMA declaration that stipulates this in order to proceed.

All residential loans must pass the affordability test using our own model. Income from all applicants will be combined for the purpose of affordability. Please use our residential affordability calculator to check your client’s affordability.

We’ll accept the following forms of income:

• Gross annual basic income: 100% - including 100% of guaranteed permanent allowances to include large town weighting allowance, car allowance and housing allowance.
• Overtime, bonus, commission: 50%.
• Child maintenance by court order: 100% (child can be up to 13 years old).
• Pension: 100% (state or private).
• Child/working family tax credits: 100% (can only accept Child Tax Credits, and the non-childcare elements of Working Tax Credits).
• Universal Credit: 100% after deductions.
• The only elements that can be utilised are: Standard, Child (not Childcare), Disabled Child, Carer and Disability. If deductions are applied, within the Universal Credit statement, this percentage of deduction is to be applied uniformly to the acceptable elements.

Government benefits

• Government benefits (excluding child/working tax credits) are not acceptable.
• Includes Housing Benefit, Jobseeker's Allowance. Mobilility Allowance & PIP.
• Child Benefit can be considered in addition to employed income at the underwriter’s discretion.

Overtime

If overtime remains constant month on month, we’ll include 50% over a three month period in our affordability calculation.

If the overtime fluctuates, we’ll include 50% of the average of the last three months in our affordability calculation.

This is subject to overtime being sustained.

Commission

If commission remains constant month on month, we’ll include 50% over a three month period in our affordability calculation.

If the commission fluctuates, we’ll include 50% of the average of the last three months in our affordability calculation.

This is subject to commission being sustained.

Self-employed applicants

Affordability is based on net profit before tax, based on the finalised accounts for the last three years for sole traders/partnerships.

For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.

How is self-employed income assessed?

Self-employed: sole trader/partnership

Annual income will be assessed from the accounting information supplied.

Self-employed: limited company

Income will be taken as per employed applicants plus dividends where appropriate.

Maintenance income

We can only accept maintenance income if this is ordered by either the courts or child support agency.

Pension income

We can accept 100% of private and state pension.

Rental income

We can accept 100% of net rental income, which must be evidenced by way of finalised accounts, SA302s, submitted tax calculations or an accountant’s reference.

We can accept 50% where used as additional income.

Second income

We can accept 100% of a second income that is sustainable and held for a minimum of 12 months. Hours worked should be sustainable and not excessive.

Payslip deductions

These are considered as anything that can’t be opted out of such as student loans and child support, and are factored into our affordability calculation.

Customers should be registered for UK tax and the source of income must be within the UK unless the application is for a further advance on a Jersey property in which case the customer may be registered for Jersey tax with their source of income from within Jersey.

Residential mortgages

We allow a certain amount of adverse credit with levels being dependent on the product chosen. Please read our product guide for further details.

• Maximum number of applicants: four.
• Age limits: 18-85. Maximum age at end of term is 85 (including lending into retirement).

Application fee:

£145, payable at time of application.

Product fees:

Please see individual product pages.

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

• The company name
• The certifier’s name and their position within the company
• The certifier’s signature
• The date

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

ID and residency documents must be certified individually.

For more information about certification, please read our Anti money laundering guidelines

Where you are unable to certify the applicant’s documentation Post Office certification is acceptable and we will require a fully completed Post Office Certification Form. Further information can be found at www.postoffice.co.uk/identity/document-certification.

Prefabricated reinforced concrete (PRC)

The 1984 Housing Defects Act, which was later consolidated into Part XVI of the 1985 Housing Act, designated certain types of prefabricated reinforced concrete (PRC) dwellings as defective. Any PRC dwelling that hasn’t been repaired under a repair scheme originally licensed by PRC Homes Ltd is unacceptable. A repaired property attached to an unrepaired property, or one that hasn’t been repaired to the same standard, is also not acceptable. Retrospective certificates are also not acceptable.

Contractors are considered.

PAYE contractors

Applicants employed on a PAYE contract basis, will be required to provide the latest contract and if less than six months remains, the underwriter must assess the likelihood of the contract being renewed (e.g. as evidenced by having been renewed once).

Self-employed contractors

Self-employed contractors can be accepted subject to the following criteria:

• Standard self-employed LTV maximum applicable (restricted to 85% LTV if only one year contracting);
• Current contract must have a minimum of 3 months remaining at time of application;
• Applicant must be able to evidence at least one contract renewal with a minimum 12 months sector experience;
• Receipt of 3 months personal and business bank statements.

Construction industry sub-contractors (CIS)

• Applications from customers employed on a Construction Industry Scheme (CIS) Contract are acceptable. Income should be evidenced using the latest 3 months consecutive payslips/invoices/statement along with corresponding bank statements.
• Customers should be treated as self-employed and comply with self-employed eligibility and verification requirements, if they pay their own tax or are sub-contracted to more than one company.

An application cannot be considered until a criminal conviction is spent. Details of when convictions are classed as being spent can be found here: https://www.gov.uk/guidance/rehabilitation-periods

The applicant must provide their previous 12 months’ employment history.

Proof of income

• Latest months’ payslip.
• Latest three calendar months’ personal bank statements showing income and expenditure.

Further income proof (including P60) may be requested where appropriate (e.g. where income fluctuates and month to date figures on payslip cover an insufficient period).

Ex-local authority houses are acceptable. The Property must be outside of pre-emption period.

Flats in blocks must be of modern construction.

Maximum number of floors accepted as standard:

• Outside of London: 10 (plus ground floor).
• Within London: 20 (plus ground floor).

High rise blocks outside of standard criteria may be considered on a case by case basis as an exception at our discretion. This is subject to the valuer confirming that the position of the flat within the tower block doesn’t detrimentally impact on marketability.

If the property on which we’re lending is on the fourth floor or above, the property must have a lift.

Ex-local authority flats:

These can be considered where:

• There is an active and transactional market within the block/development.
• The security isn’t in a pre-emption period.

Basement flats can be considered on a case by case basis.

Minimum loan: £15,000 (subject to product availability).

Maximum loan: Unlimited (subject to product availability).

These products are available on repayment and interest-only terms.

A breakdown outlining the purpose of the further advance is required.

Please read our product guide and Further Advance Application submission for further details.

These mortgage products are portable. Even if your client moves home during the initial special deal period of a mortgage, the remaining benefits (up to the outstanding balance of their existing mortgage) of that special deal can be transferred to their new mortgage with us, subject to our lending criteria at the time of any move. In this case, any early repayment charges won’t be charged but the existing rate won’t apply to any additional funds that your client borrows.

A maximum of one guarantor is accepted.

Please ensure the application is noted to state which applicant is the guarantor and we’ll ensure they don’t appear on the deeds on the mortgage offer.

Number of applicants

The guarantor will count as an applicant on the mortgage. The guarantor mustn’t make the number of applicants on the mortgage exceed four.

Affordability and evidence

The guarantor’s income and commitments will be included in our affordability calculation in addition to the applicant’s income. For affordability, we’ll use household expenditure for both the applicant(s) and guarantor(s).

The guarantor must provide:

• Evidence of income.
• Existing commitments - if the Guarantor holds their own mortgage, the remaining balance of this will be included within the affordability calculations.
• Bank statements.

Term

The maximum term is based on the oldest applicant, including the guarantor.

If the term takes the guarantor beyond their declared/intended retirement age, we will require evidence of retirement income for affordability purposes.

Acceptable repayment strategies and required evidence

• Interest-only and part and part mortgages (not available for shared ownership).

Sale of security property

• Residential owner occupied maximum is 50% LTV with a minimum equity amount of £200,000.
• The borrower circumstances must clearly reflect the ability to downsize at term end.

Asset Backed Interest-Only

Maximum LTV 85%*

*Including the interest only element of a part and part mortgage.

Japanese knotweed class C and D are acceptable. Class C will require a satisfactory management plan in place.

Terms available between 5 and 35 years.

Remortgages considered within six months.

Offers valid for three months.

New build offers valid for six months.

For more information, please see our product guide.

The following loan purposes are acceptable:

• Purchase of applicant’s main residence.
• Remortgage of applicant’s main residence.

The following loan purposes aren’t acceptable:

• To shore up a business.
• Remortgages to repay gambling debts.
• Purchases where the applicant is married or in a civil partnership and their spouse or partner isn’t included on the application.
• To repay tax.

Standard residential mortgages

Minimum loan: £50,000.

Maximum loan: Please read our product guide for further details.

Shared ownership

Minimum loan: £50,000.

Maximum advance: £1,000,000 - more available by exception.

For more information, please see our product guide.

Standard residential mortgages

Minimum property value: £75,000 (subject to product criteria).

Shared ownership

Minumum property value: £125,000 (subject to product criteria).

All mortgage payments must be made by direct debit, and the applicant must choose between 10^th and 28^th days of the month for the payment to be collected.

New build properties are considered as those that:

• Are less than two years old (from the date of practical completion), and/or
• Haven’t been lived in.

New Build maximum LTV

Houses: maximum 85% LTVLoan to value.*

Flats: maximum 75% LTV.*

*Subject to product availability.

Warranties

If the property is less than 10 years old, one of the following warranties must be in place:

• Advantage HCI
• Ark Residential New Build Warranty
• BOPAS (Build Offsite Property Assurance Scheme)
• Build Assure (New Homes Structural Defects Insurance)
• Building Life Plans
• Build Zone Structural Warranty
• Checkmate (Castle 10 New Home Warranty)
• Global Home Warranties
• Homeproof
• International Construction Warranties (ICW)
• LABC New Home Warranty
• Modern Methods of Construction (MMC) only
• N.H.B.C. guarantee
• One Guarantee
• Premier Guarantee Scheme (previously an Architect’s Certificate)*
• Protek
• The Q Policy
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI
• Zurich Municipal “New build”

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers, subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten. The solicitor acting for us should ensure an acceptable warranty is in place.

New build, newly converted, and those under 10 years old

The block must benefit from a 10-year new homes warranty or UK Finance compliant Professional Consultant’s Certificate (PCC), with accompanying professional indemnity insurance. Retrospective PCCs aren’t acceptable.

Modern methods of construction

Any off-site technology must be subject to the Build Offsite Property Assurance Scheme (BOPAS) in conjunction with an acceptable 10-year new homes warranty.

We aim to get electronic proof of identity, but if documentation is required, we only accept postal copies and not internet printed documents.

We accept the following:

• Valid UK driving licence* - photocard (full or provisional) – if not used as proof of identity.
• Current bank/building society credit card statement issued by a regulated sector firm in the UK – includes bank or building society savings book - dated within the last three months.
• Current mortgage statement issued by a regulated financial sector firm in the UK - dated within the last 12 months.
• Utility bill (gas, electricity, etc.) - dated within the last three months.
• Multi-Media Bill – BT Bill, Sky TV, Virgin Media etc (landline/Broadband only - mobile not accepted) (the landline number must be the same as quoted on the application) - dated within the last three months.
• Local Authority Council tax bill - dated within the last 12 months.
• HM Revenue and Customs documents/tax summary (not, P45 or P60) - dated within the last 12 months.
• Vehicle Licence Reminder All - dated within the last 12 months.
• TV Licence or renewal/reminder letter All - dated within the last 12 months.
• DWP correspondence (state pension or state benefit books/notification) - dated within the last 12 months.

* In accordance with the DVLA regulations, you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of address, and therefore, other items may be requested.

Please ensure that all documentation is properly certified. Please see our Certification criteria for more information.

We aim to get electronic proof of identity, but if documentation is required, we accept the following:

• Valid UK passport.
• Valid non-UK passport - valid right to remain or right to reside should be present in the passport.
• Resident Permit (issued by Home Office) front & back required.
• Valid UK driving licence* – photocard (full or provisional).
• HM Revenue & Customs correspondence - (not P2,P45 or P60) - dated within the last 12 months.
• DWP letter confirming entitlement to pension - dated within the last 12 months.

* In accordance with the DVLA regulations, you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of identity, and therefore, other items may be requested.

Please ensure that all documentation is properly certified. Please see our Certification criteria for more information.

Where a copy of an applicant’s ID documents have been obtained via a digital ID solution, we will require a copy of the customer’s digital report from one of the following companies:

• Amiqus
• CallCredit / TransUnion
• Credas
• Experian
• Equifax
• GBGroup
• LexisNexis
• Onfido
• TrustID
• Yoti

In general, properties above (or attached to) the following establishments won’t be accepted:

• Takeaways, restaurants and cafés.
• Bars and nightclubs.
• MOT garages, or any property where industrial processes are carried out.
• Dry cleaners (where dry cleaning takes place on the premises).
• Nail bars.
• Tattoo parlours.
• Hairdressers.

This isn’t an exhaustive list. please speak to your business development manager for more information.

Acceptability

Remortgages can’t be accepted for the following purposes:

• To shore up a business.
• To repay gambling debts.

Remortgages within six months

Remortgages will be considered where the security property has been owned for less than 6 months where the property has recently been inherited or subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:
• A schedule of works and evidence of expenditure.
• Confirmation that works have been completed to a suitable standard.
• Any necessary consents have been obtained.
• Confirmation that the property is marketable and mortgageable.

• In all instances, the property must be registered at the Land Registry as owned by the applicant(s).
• In all instances, evidence of ownership of the property must be provided by way of confirmation from solicitors, TR1 form or being registered at the Land Registry as owned by the applicant(s), during the application process.

We accept the following repayment methods:

• Capital repayment.
• Interest-only mortgages (not available for shared ownership).
• Part and part (not available for shared ownership).

We accept the following repayment methods:

• Capital repayment. 
• Interest-only mortgages (not available for shared ownership).
• Part and part (not available for shared ownership).

UK/EU nationals accepted.

Other European Economic Area (EEA) Nationals and Non-EEA Nationals must also have been resident in the UK for a minimum of 36 months and provide evidence of permanent rights to remain in the UK. Must provide evidence of ongoing rights to reside by either a valid permanent residence document, or documents evidencing that ‘settled’ or ‘pre-settled’ status has been granted under the EU Settlement Scheme.

Applicants should have lived and worked in the UK for the last three years.

British Forces Post Office (BFPO) addresses are considered to be UK.

For more information about certification, please read our Anti money laundering guidelines.

Properties in England and Wales only.

A first legal charge is required.

Shared ownership: Full Mortgage Protection Clause (MPC) is required and must have staircasing ability to 100%.

New build properties

Must have acceptable warranty or CML compliant certificate.

Self-build properties

Must have required certification.

Self-employed applicants are considered.

12 months’ trading

We’re able to consider self-employed applicants who’ve been trading for a minimum of 12 months. Income will be evidenced through the year's accounts. The most recent three months' personal and business bank statements must also be provided.

Where a self-employed applicant has only been trading for 12 months they will be subject to the following:

• Maximum 85% LTV.
• They must provide a suitable business plan.

Income calculation

We’ll base income calculation on the finalised accounts, SA302s, accountant’s reference or tax calculation submitted to HMRC.

For limited company directors, we’ll use their salary and dividends. For sole trader/partnerships we’ll use net profit.

Proof of income required

• Latest three years’ SA302s, finalised accounts or tax calculations submitted to HMRC.

Download our required documents on submission checklist.

Accountant representation

Applicants must be represented by an accountant with suitable 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 Accountants (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/AFA qualified.
• Chartered Accountant (CA).

Length of accountant/customer relationship may be less than 12 months at the discretion of the underwriter.

Three years’ trading

When a self-employed applicant has been trading for three of more years, we are able to accept a projection from a suitably qualified accountant.

The level of projected income used can be up to 30% greater than the latest year's confirmed income.

Minimum loan: £50,000.

Maximum loan: £1,000,000.

Minimum property value: £125,000.

Minimum share: 10%.

Maximum share: 75%.

A full mortgagee protection clause (MPC) must be in place.

Applicants must use one of our approved panel solicitors.

We can lend up to 100% of the applicant’s share.

Further advances for shared ownership is only available for staircasing.

Must allow staircasing up to 100% ownership.

Note: We currently only accept traditional shared ownership schemes via government approved Housing Associations. We do not consider other similar schemes marketed under an alternative name as a traditional shared ownership scheme. If you are unsure if a particular scheme would be acceptable to us, please contact us to enquire.

The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Spouse/civil partner.
• Parents (including step-parents).
• Grandparents.
• Siblings (brother/sister).
• Daughter/son.
• Aunt/uncle.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan.
• The gift is non-refundable.
• The donor won’t have an interest in the property.

Should the gift originate from family living abroad (considered on a case by case basis), we require evidence of the funds showing in the applicant’s UK bank account.

Builders’ incentives

Builders’ incentives are acceptable.

Calculation

Builders’ incentives are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Vendor deposit

Vendor deposits are accepted.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Unacceptable deposit sources

Cryptocurrencies – any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see our Valuation fee scale for more information.

Standard valuation reports are for the sole purpose of enabling Kent Reliance to assess the suitability of the proposed security and to decide on the amounts (if any) that can be advanced on the mortgage and the report remains the property of Kent Reliance. The valuation fee collected is non-refundable unless explicitly stated on the associated illustration. On submission of an application you will need to accept the FMA declaration that stipulates this in order to proceed.

Freehold

Houses only.

Leasehold properties

The unexpired term of the lease must be at least 50 years at the end of the mortgage term and subject to a satisfactory valuation.

Where the lease has less than 85 years remaining at application stage the valuer will be required to evidence a transactional market for similar length leasehold properties in the area.

Leasehold properties on an interest-only basis where the remaining lease term is less than 85 years will be accepted at a maximum 75% LTVLoan to value.

Applicants employed by UK umbrella company are acceptable subject to the Underwriter being satisfied that the applicants have a secure and sustainable income stream.

The nature of the employment, length of time employed on this basis (track record), end date of any fixed term contract, level of income and overall quality of the application should be considered, and a detailed rationale provided.

Gross income should be after any Umbrella company deductions such as Umbrella fees, Employers NI and holiday pay, but before the usual PAYE tax, pension and Employee NI deductions.

Please see our Valuation fee scale for more information and our approach.

Standard valuation reports are for the sole purpose of enabling Kent Reliance to assess the suitability of the proposed security and to decide on the amounts (if any) that can be advanced on the mortgage and the report remains the property of Kent Reliance. The valuation fee collected is non-refundable unless explicitly stated on the associated illustration. On submission of an application you will need to accept the FMA declaration that stipulates this in order to proceed.