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

Your home may be repossessed if you do not keep up repayments on your mortgage.

  • Update on our lending policies Following the government’s announcement on restricting physical property valuations to enable social distancing and help prevent the spread of coronavirus, our valuers are currently unable to visit properties and carry out physical inspections. Click here to find out more.

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 85%.

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.

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Things to consider before you application

  1. You need to be at least 18 years of age to apply for a mortgage.
  2. You must reside in the UK at the time of application and either be a UK citizen or hold a European passport.
  3. The minimum term for a mortgage loan is 5 years and the maximum term is 40 years (provided this does not take your term beyond your 80th birthday). Interest only borrowing is not permitted if you are retired or if the term of the mortgage goes beyond your stated retirement age, or age 70 whichever is earlier.
  4. You have the right to repay your loan either partially or in full during the term.
  5. 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.
  6. We can’t accept an online application in your sole name if you are married or in a civil partnership.
  7. When you request a lending decision from us, we will verify your details with a credit reference. Our checks will not appear on your credit file at this stage of the application.

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 or payments towards childcare you receive (such as child maintenance).
  • Your financial commitments including credit cards, overdraft usage or loan repayments (including student loans). You should include any payments made towards childcare or child maintenance.
  • You also need to tell us about any existing mortgages you may have.

Use our Borrowing calculator before applying to check how much we may be able to lend to you based on your income and outgoings.

Minimum and maximum loan amounts

Existing properties

 Your Loan to Value Minimum loan amount Maximum loan amount
 Below 75% £25,001 £750,000
 75% - 85% £50,000* £850,000

* 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)

Important information

  • Your Loan to Value (LTV) is the size of the mortgage loan amount as a percentage of the value of the property you are purchasing or the price you are paying, whichever is lower (for example, a £180,000 mortgage on a house valued at £200,000 would have an LTV of 90%).
  • Our mortgage deals have a ‘Maximum LTV’ - this is the most you would be able to borrow against the purchase price, shown as a percentage.
  • The maximum LTV for all online applications is 75% for house purchases and 85% for remortgages
  • Applications with a loan size over £600,000 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.

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.

You can see which documents we accept for proof of address and identity 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 2 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 2 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 dividends for the last trading year or the average for the last 2 years, whichever is lower.

If the business has been set up for less than 2 years, the finalised years figures and a projection for current year will be required.

Other things you should consider

Appointing a solicitor from YBS' approved panel

In order for us to fully process your mortgage application and provide an offer, it's preferable that your solicitor or conveyancer is on our panel of approved solicitors. This means that we can appoint your solicitor to act for us as well. You can find out more about how to appoint a solicitor on our conveyancing page.

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.

Visit us

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

Request an appointment

Call us

Speak to one of our friendly mortgage advisers about your options

0345 166 9510*

9am - 5pm Mon-Fri 9am - 1pm Sat