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Our Mortgage Lending Criteria

From the maximum amount you can borrow to the
documents we need to see, here’s our guide to ensuring your mortgage application goes 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

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 set those out to the right.

Your employment status

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.

Are you 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, read our guide to applying for a remortgage.

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. The minimum term for a mortgage loan is 5 years and the maximum term is 35 years (provided this does not take your term beyond your 75th birthday).

  3. You have the right to repay your loan either partially or in full during the term.

  4. If the mortgage term you require will extend past your expected retirement age, we can’t accept an online application from you. In these circumstances, you would need to apply in branch or over the phone.

  5. We can’t accept an online application in your sole name if you are married or in a civil partnership.

  6. When you request a lending decision from us, we will verify your details with a credit reference. This will leave 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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Your documents

When you apply for a mortgage with Yorkshire Building Society, we’ll need to see some documents from you. This is to verify your identity and current address.

Please be aware that you must send original or certified true copies of your documents. You can see which documents we accept for proof of address and identity and how to certify your documents on our Verifying Your Identity help page.

Employment status documents

Sometimes we may need to see some additional documents from you, depending on your employment status. Select the employment option that suits you from the list below:

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.

.

Other things you should consider

The Higher Lending Charge (HLC)

Where your Loan to Value exceeds 75%, 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 but 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.

Before proceeding to an application, read our guide to Mortgage Fees & Charges.

Need some help?

Visit us

You can visit us in branch to speak to a mortgage adviser.

Call us

Speak to one of our friendly mortgage advisers about our range of mortgage deals.

0345 166 9510*

  • 8.00am - 8.00pm, Mon-Fri
  • 9.00am - 1.00pm, Sat