Lending Policy
We offer mortgages to various people in various situations. Residential mortgages are available for the following purposes:
- Purchases of a residential property
- Remortgages of an existing advance
- Capital raising
All our mortgages are provided subject to status. This means that when you request a mortgage or a remortgage quote from us we will take into account your circumstances, both personal and financial, to make sure you could borrow the maximum mortgage that suits your lifestyle and your budget. We will also consider the amount you want to borrow and the value of your home. Our decision to provide you with the best mortgage rate will depend on these factors along with any criteria specific to the mortgage product you have chosen.
Standard Income Multiples
The maximum loan we will advance is also subject the following multiples:
| LTV | Multiple Of First Income Plus 1 × Second | Joint Income |
|---|---|---|
| Up to 60% | 4.5× | 3.5× |
| 60.01% to 80% | 4× | 3.5× |
| 80.01% to 95% | 3.75× | 3.5× |
Purchase Price Valuation
All properties must have a minimum purchase price and / or valuation (whichever is lower) of £40,000.
Valuation Fees
Alternative fees will be charged for special schemes, please refer to specific product pages for details.
| Valuation of Property * | Standard Fee * |
|---|---|
| Up to £100,000 | £240 |
| £100,001 - £200,000 | £265 |
| £200,001 - £250,000 | £290 |
| £250,001 - £300,000 | £315 |
| £300,001 - £400,000 | £340 |
| £400,001 - £500,000 | £415 |
| £500,001 - £600,000 | £490 |
| £600,001 - £700,000 | £565 |
| £700,001 - £800,000 | £640 |
| £800,001 - £900,000 | £715 |
| £900,001 - £950,000 | £790 |
| £950,001 - £1,000,000 | £790 |
| Over £1,000,000 | By negotiation |
* All of the above fees include an administration fee to the Society of £125.00.
Status
Minimum age for applicants is 18. Maximum age at the end of the loan term is 75.Where applicants are within 5 years of expected retirement age the sufficient pension income to support the advance throughout the mortgage is required.
The following points will be taken into account when considering the applicants' ability to meet mortgage payments.
- Employed applicants must either have been with their present employer for at least six consecutive months or, if less than 6 months, with a previous employer for at least eighteen consecutive months.
- Exceptions may be made for certain professionally qualified applicants who have only recently taken up employment.
- Applicants who have fixed term contracts within professional occupations such as doctors, teachers and solicitors, will be regarded as in permanent employment. Applicants from contract workers in other fields will be considered on their individual merits.
- Overtime / bonus / commission must be a regular component of earnings and 50% of such earnings will be taken into account.
- We will consider 100% of unencumbered unearned income, including investment and rental sources. Pensions are an acceptable form of income, if guaranteed. All cases must be referred in the first instance.
- 50% of Income from a second job will be considered provided that there is a minimum of 12 months service (we will accept 100% of income where 2 part time jobs is full time equivalent).
- 100% of maintenance payments will be considered subject to a court order or CSA. All cases must be referred in the first instance.
- Our criteria for non-standard income, as listed above, applies to all applications, irrespective of the loan required.
- We would normally expect applicants to have resided in Gibraltar or United Kingdom for a minimum of 3 years and provide proof of residence to that effect. However, if this is not the case then we would still be willing to consider your individual circumstances.
- For all applicants who have resided in the UK for the last three years, we will run a credit search on all our applicants' addresses to cover the
three year period preceding the application. The results should confirm
the applicants are registered at the address and that there are no:
- CCJ's or Defaults registered or satisfied within last 3 years
- No Bankruptcy or IVA's, irrespective of being satisfied
- Current arrears and instances where 3 or more consecutive payments missed in last 3 years will be referred to underwriters for assessment
- Mortgage arrears within last 12 months (instances where there are will be referred to underwriters for assessment)
Information Requirements
The following information is normally required in support of a mortgage application:
- For employed applicants, last three months' pay slips, 6 months' personal bank statements and most recent P7. Satisfactory references covering the last two years may also be sought.
- For self employed applicants, the last two years' audited/certified accounts, 6 months personal bank statements plus a projection for the current financial year. Accounts must be audited / certified by a chartered or certified qualified accountant.
- Proof of payment for the preceding 12 months is required where the applicant has had a previous mortgage or has been a tenant.
- For all forms of additional income which is being taken into account, documentary evidence will be required.
- In the event that the applicants are not registered on the electoral roll, they must supply proof of residence. Any utility bill, council tax bill, voters roll enquiries, bank statements or mortgage statements are acceptable, provided the original documents are supplied.
- The Society will be required to confirm identity. Acceptable documents include a passport, driving licence or a national identity card.
Interest Rates, Fees and Charges
The Society's general mortgage administration fees are detailed in our Summary of fees and changes, a copy of which is also available upon request.
Further Advances
An administration fee of £299.00 will apply for the application of a further advance.
General
- All the above terms & conditions apply to residential lending only.
- The Society reserves the right to reject any application where the borrower has any convictions or pending prosecutions relation to financial misdemeanour or dishonesty.
- These guidelines outline the main elements of the Society's residential lending policy, but are by no means exhaustive.
- In the interests of security, we may from time to time record telephone calls to and from us.
- For clarification of any aspect of our policy, or a full written quotation, please contact your local branch.
- A first charge will be required as security. All mortgages are subject to status and valuation. APR's are typical and variable.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE