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Our Lending Criteria

From the maximum amount you can borrow to the
documents we need to see, here's a guide to help your mortgage application go as smoothly as possible.

Top tips
for your
mortgage application

Find out more

Top tips for mortgage applications

We've compiled a helpful list of tips that may come in handy when applying for a mortgage.

1

Do your sums

The first step is to work out your budget before applying for a mortgage. If you have any outstanding debt, try and clear as much as you can before applying, if you have the opportunity to do so. Also, use our calculators to find out how much can you borrow and how much your repayments will be each month. Remember to include other costs associated with a mortgage application.

2

Check your credit history

You can get a copy of your credit report through credit reference agencies such as Experian or Equifax. As a mortgage provider, this is what we will check when reviewing your application. Any failed, late and missed payments on phone, utilities and credit agreements like credit cards and loans will have a negative impact on your credit score.

3

Check you are on the electoral roll

We use an electronic verification system to verify your identity, so it is important that you are listed on the electoral roll. If you are not, we will need you to provide us with proof of identity which could slow down your application.

4

Monitor your spending

When we review your finances at full application, the monthly financial position on your statement may affect the amount the Society is willing to loan to you and your final mortgage offer. By considering your spending in the months immediately before application, you can help ensure that your statements show healthy cash flow position and contingency savings.

About you and how much you can borrow

In addition to your financial situation and details of income and outgoings, it's also important to consider how your personal circumstances relate to a mortgage and whether or not a mortgage provider will lend to you. There are a number of details we look at when deciding this so you should be aware of these before you proceed with a mortgage application and we've detailed those to the right.

Self-employed or company director?

If you are self-employed, a limited company director or salaried director with a shareholding in a company, we may need additional proof of your income. Usually this is obtained from your accountant. In addition to this we will require both personal and business bank account statements. A breakdown of our document requirements are detailed below.

Remortgaging?

For remortgage applications, at least one applicant must have owned and lived in the property to be remortgaged for a minimum of six months prior to the application date. The maximum Loan to value (LTV) for remortgage applications is 90%.
For more information, see our remortgaging section.

Ready to get a lending decision?

By providing us with some details, we can provide you with an online lending decision in just 10 minutes.

Things to consider before your application


  1. You need to be at least 18 years of age to apply for a mortgage.

  2. You must have been permanently resident in the UK for at least two years to apply for a mortgage with us. Applicants must be UK citizens or hold a European passport.

  3. The minimum loan term is 5 years

  4. The maximum loan term is 35 years (provided that this does not take the loan beyond your 75th birthday)

  5. You have the right to repay the loan either partially or in full during the term of the loan

  6. Will the mortgage term you require extend past your expected retirement age? If it will, we cannot accept an online application and you would need to apply in branch or over the phone.

  7. When you request a lending decision (the first stage of an online mortgage application), we verify your details with a credit reference agency - this leaves a record on your credit file.

 

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Your income and expenditure

To ensure that you can comfortably afford your mortgage repayments, the amount we will allow you to borrow is determined by both your income and your expenditure. When deciding how much you can borrow we consider the following:

  • Information about your salary including any regular bonuses or overtime you receive.
  • Any benefits you receive or payments you receive towards child care such as child maintenance.
  • Your financial commitments including any credit cards, overdraft usage, loan repayments (including student loan repayments). Also include details of any other outgoings like payments you make towards child care or child maintenance.
  • Details of any existing mortgages you may have.
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Minimum and maximum loan amounts

New build properties

 Your Loan to Value Minimum loan amount Maximum loan amount
 Below 75% £25,001 £5,000,000
 75% - 85% £50,000 £1,000,000

Existing properties

 Your Loan to Value Minimum loan amount Maximum loan amount
 Below 75% £25,001 £5,000,000
 75% - 85% £50,000* £1,000,000
 85% - 95% £50,000* £500,000

* If you're taking out more than one product, the minimum amount on any one product is £25,001 (subject to the total loan being at least £50,000)

What is Loan to Value (LTV)

Loan to value is the size of the mortgage as a percentage of the value of the property or the price you are paying for the property whichever is lower (e.g. a £180,000 mortgage on a house valued at £200,000 would have an LTV of 90%). Our products are shown by ‘Maximum LTV’ – this is the most you would be able to borrow against the purchase price shown as a percentage.

Important information

  • The maximum LTV for all online applications is 95%
  • Applications with a loan size over £500,000 will be subject to additional lending rules, which may impact the maximum borrowing that we can offer.
  • For additional loans, the minimum loan size is £3,000, however please note that additional loan applications cannot be made online.

 

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Documents needed

When you decide to apply for a mortgage with us, we'll need to see the following:

Additional documents

Depending on your employment status, you may also need to provide some additional documents:

Employed applicants
  • If your loan is less than 75% LTV:
    Your last payslip with a corresponding bank statement
  • If your loan is more than 75% LTV:
    Your last 3 payslips plus the bank statement showing the salary credit from your most recent payslip.
.
Self Employed/Partnership/Ltd Liability Partnership (LLP)
  • Latest month's personal bank statement
  • Latest month's business bank statement

In addition to this we will write to your accountant for confirmation of your income. If your accountant is not on our list of recognised accountants or you do not have an accountant, we require your latest 3 years SA302s.

.
Limited Company Directors

Limited Company Directors with more then 25% shareholding (or less than 25% where income is derived from dividends) will need the following:

  • Latest month's personal bank statement
  • Latest month's business bank statement

In addition to this we will write to your accountant for confirmation of your income. If your accountant is not on our list of recognised accountants or you do not have an accountant, we require your latest 3 years SA302s.

.
Salaried Directors with less than 25% shareholding

Salaried directors with less than 25% shareholding are treated for income purposes as employed applicants and the same evidence of income is required as detailed against employed applicants.

.
Salaried Directors with more than 25% shareholding

Latest month's personal bank statement. In addition to this we will write to your accountant for confirmation of your income.

Something to bear in mind: We'll always take into consideration the net profit for the last trading year or the average for the last 3 years, whichever is lower.

If the business has been set up for less than 3 years, details from the last 2 years together with a projection for the current year will be used.

.

Vital information about your ID documents

All documents that you send must be originals or certified true copies. Please follow these guidelines to make sure we can accept what you send to avoid delays:

How to certify copies:

The person who certifies your copy must include the following on every page of that copy. (For lengthy documents, such as accounts, the person certifying can state the following on the first page: the number of pages in the document and that they have seen and certify the full copy as a true copy of the original.)

  • "I certify that this document is a true copy of the original." If the document is photo ID, they should also state "and is a true likeness of the individual."
  • Full Name & Signature
  • Profession
  • Business Address including company name.
  • Telephone Number
  • If they are an Independent Financial Adviser, mortgage or insurance broker, their FCA number.

Who can certify:

  • Yorkshire Building Society Branch/Agency employees
  • Bank employees
  • Accountants
  • Solicitors (including Barristers)
  • Commissioner for Oaths - this is a title held by almost all UK and Irish solicitors and some Legal Executives.
  • Independent Financial Advisers or mortgage / insurance brokers. Must be FCA registered and will need to provide their FCA number when certifying.
  • Post Office employees

Getting your documents to us:

Post to:
Central Processing
Yorkshire House
Yorkshire Drive
Bradford BD5 8LJ

  • It's a good idea to send documents signed for or guaranteed delivery to speed up the process and to ensure safe delivery.

 

Other things you should consider

Higher Lending Charge (HLC)

Where a loan exceeds 75% of the purchase price or valuation (whichever is the lower) there is increased risk to us. To cover us against this risk, a Higher Lending Charge (HLC) is payable. This charge will be paid by us. Even though we will pay a HLC, you are still responsible for the money you owe, including any shortfall.

Repaying your mortgage

When you take out a mortgage you agree to repay all the money that you owe. Even if you pay a Higher Lending Charge, you are still responsible for the money you owe, including any shortfall. If you fall behind significantly with your mortgage payments, we will work with you to help you manage your circumstances and arrears. However, we may have to repossess your property and sell it to recover any money you owe.

If your property is repossessed, please note that the sale may not achieve the amount sufficient to cover your outstanding mortgage; if this is the case it will result in a shortfall.

Other mortgage costs

Solicitor fees

You'll need to factor in legal fees if you're buying a home or remortgaging from another lender. Any legal work done or your behalf will need to be done by a solicitor or licenced conveyancer. Your legal adviser will carry out any necessary searches for the property and there will be a cost associated with these.

Product fees

There will usually be a one-off product fee for our mortgages although this depends on the product you choose. All fees are clearly stated on the product information.

Application fees

There is also an application fee for the processing of your mortgage which you'll pay when you apply. This covers the cost of processing your application.

Valuation and survey fees

A mortgage valuation provides us with guidance about the property you plan to purchase. The survey can provide additional protection by alerting you to any problems with the property. The cost of the valuation depends on the property amount whereas the survey cost depends on the level of survey undertaken.

Your first mortgage payment

We will write to you shortly after completion to confirm that the direct debit for your mortgage payments has been set up and to let you know the date of your first payment.

Need more help with fees & charges? Read our handy guide.