The following represents the maximum allowable adverse for an application.

CCJs

0 in 12m (>=£300) and 1 in 24m (<£3,000)

Defaults

0 in 12m & >=1 in 24m

Secured arrears

0 in 12m & >=1 in 36m

All arrears

2 in L6M (all accounts)

Bankruptcy, IVA, Debt relief order repossession, DMP

0 in 72m

*CCJ/Defaults should only be considered (product specific rules may apply) in the following circumstances:

• The CCJ/Default is unsatisfied;

• The CCJ is >£300 and was satisfied in the last 12 months and registered within the last 3 years.

• The Default was satisfied in the last 12 months and registered within the last 3 years.

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.

The following are unacceptable:

Properties designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and the properties either side have not been repaired under a scheme licensed by PRC Homes Ltd.

Properties with mundic concrete in designated as Class B or Class C.

Applications classed as consumer buy to let (CBTL) cannot 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.

For ex-local authority flats, the following are unacceptable:

• Properties within Right to Buy pre-emption period;

• Flats where there isn’t an active and transactional market within the block/development.

The limits below do not apply where lending on multiple units on a single freehold.

Where the number of units within a block / development is <= 8 no maximum unit percentage is applied.

Above 8 units the maximum exposure is set at 20%.

Lending is not acceptable if no applicant is an existing homeowner (residential owner occupied and/or buy to let).

It is acceptable to finance the following:

• Self-contained flats/maisonettes/apartments with private facilities and direct access to the highway via common parts.

• Blocks of flats where units are not self-contained or otherwise individually mortgageable on a block investment basis only.

Where the security is situated above a commercial premises and/or it is a new build it can only proceed subject to no adverse comments from the valuer/conveyancer.

For blocks of flats, the following rules apply:

• Must be readily saleable and mortgageable

• Cannot be constructed of Large Panel Systems (LPS Blocks)

Studio flats below 30 square meters gross internal area are not acceptable.

For ex-local authority flats, the following are unacceptable:

• Properties within Right to Buy pre-emption period;

• Flats where there isn’t an active and transactional market within the block/development.

Flying freeholds can be considered provided the percentage thereof does not exceed 20% of the total floor area.

House in Multiple Occupation (HMO) is permissible.

Generally, a HMO will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non-self-contained flats and some self-contained flats.

Any property meeting the criteria above is deemed to be a HMO for lending purposes regardless of tenancy agreements in place or the type of tenant.

HMO properties must have the appropriate planning permission in place as follows:

• Up to 6 bedrooms – C4 planning (where required due to removal of permitted development rights, such as the implementation of an Article 4 Directive);

• 7 or more bedrooms – Sui Generis planning.

Where formal planning permission has not been granted as above, a Certificate of Lawful Use is also deemed as acceptable for both C4 and Sui Generis planning uses. Where there is no formal planning permission and no Certificate of Lawful Use, confirmation of continued lawful use as a HMO should be obtained from the acting Solicitor.

Licencing

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.

For purchases, the following apply as applicable:

• Where the property is currently licenced, the Group’s Solicitor is to confirm sight of the licence and that the licence is in the borrower[s] own name;

• Where the property is not licenced, but the applicant holds a licence on an alternative property. The Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to apply for a licence on the subject property within 60 days from completion;

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

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.

Acceptable for limited company lending, subject to:

• The majority shareholder to mirror across SPV and connected company;

• Must be UK to UK company (no offshore companies);

• Loan needs to be repayable, and a term agreed with documented loan agreement;

• The term must not exceed that of the mortgage;

• Rate of interest applied should be HMRC’s ordinary rate of interest;

• Any monthly payment to be included in ICR calculation; and

• Connected company not to have any interest or charge over the Bank’s security.

Properties with Japanese knotweed designated as Class A or Class B. Or Class C if there isn’t a satisfactory management plan in place.

Not acceptable.

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.

Acceptable types

Limited companies (SPV & Trading)

LLPs

Companies must be registered in the UK.

Each company must have a maximum of four directors/designated members, all of whom must be included on the application. Personal guarantees are required from all directors/designated members.

If it is identified that the company has any restrictions on the purchase, management and sale of investment property, the application cannot proceed.

A purchase by an individual from their own limited company or between two limited companies with the same owners / directors is acceptable only if the property is sold at full market value, and all relevant taxes are paid.

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.

Purchase and remortgage of a residential property, as a buy to Let (BTL) investment.

Min:

£50,000

Max:

£1,000,000

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 1^st and 28^th days of the month for the payment to be collected.

Blocks of flats on a single freehold

Acceptable subject to valuer confirmation that the individual units are saleable and mortgageable.

Total block/development exposure limits do not apply where lending on multiple units on a single freehold.

Valuations will be conducted as follows:

• Blocks < 20 units - Minimum valuation applies to each unit.

• Blocks >= 20 units – Valued on a block valuation basis.

New build properties are those that are less than two years old (from the date of practical completion) and/or have not been lived in.

Properties aged less than ten years, recently converted or occupied for the first time must benefit from one of the following:

• Advantage HCI;

• Ark Residential New Build Warranty;

• BOPAS (Build Offsite Property Assurance Scheme);

• Build Assure;

• Buildzone;

• Building Life Plan;

• Checkmate (Castle 10);

• Global Home Warranties;

• Home Proof;

• International Construction Warranties (ICW);

• LABC;

• N.H.B.C Guarantee;

• One Guarantee;

• Premier Guarantee Scheme;

• Professional Consultants Certificate (previously an Architect’s Certificate);

• Protek;

• Q Policy.

• Zurich Municipal “new build” (valid until 30/09/09).

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.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

Accepted.

Definition of portfolio landlords

Borrowers with four or more distinct mortgaged buy to let properties should be treated as portfolio landlords.

The following will be included when counting properties within a portfolio:

• The subject property and any other pipeline buy to let applications within the Group

• For personal applications, all mortgaged buy to let properties owned by the applicants in their own names and as guarantors to limited company lending

• For limited company applications, all mortgaged buy to let properties owned by the entity applying plus those held by the guarantors both in their personal name and as guarantors to existing Limited Company lending

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.

Applications should be considered in the context of the borrower’s existing buy to let portfolio, their experience in the buy to let market and business plan.

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.

You must provide the following as part of the application journey:

• A business plan including a cash flow summary of the current / previous tax year and tax liability;

• And an Asset and Liabilities statement.

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

Where the security is situated above a commercial premises and/or it is a New Build it can only proceed subject to no adverse comments from the valuer/conveyancer.

Remortgages can’t be accepted for the following purposes:

• To shore up a business.

• To repay gambling debts.

Capital raising is acceptable for any legal purpose. The amount and purpose of capital being raised must be established.

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:

• LTV being based on the current valuation in all cases. Where improvement works have been completed, the valuer must be satisfied that the improvements have taken place;

• New Build properties are excluded.

Where the property has recently been inherited, probate (or letters of administration, as appropriate) must have been granted prior to application and verified prior to offer.

Rental income requirements are dependent on the property profile.

Standard Buy to let – a single dwelling, HMO or student let with <=6 letting rooms, or <=6 flats in one block under one title.

• Higher/additional rate taxpayer – 140%

• Basic rate taxpayer / Ltd Co / LLP – 125%

Complex buy to let – HMO or student let comprising >6 letting rooms, or >6 flats or more in one block under one loan, or multiple houses under one title HMO or student let comprising 5 or 6 letting rooms.

• Higher/additional rate taxpayer – 175%

• Basic rate taxpayer / Ltd Co / LLP – 145%

Interest only or capital repayment

A full three-year UK residential history is required for all applicants. All applicants must be resident in the UK at the time of completion.

UK Nationals

For the purposes of this Policy, British Forces Post Office (BFPO) addresses are considered to be UK.

UK Nationals that have resided abroad during the last three years can be approved where:

• A temporary, overseas posting has been necessary as part of their employment;

• The underwriter is satisfied with the circumstances;

• Sufficient credit records are available; and

• The applicants are resident in the UK at the time of completion.

Non-UK Nationals

In addition to residency requirements, applicant(s) must provide evidence of permanent rights to remain in the UK.

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 without recourse to additional borrowing. Acceptable, alternative, sources of deposit are noted below.

Capital raising remortgage / Secured loan

Where the applicant has sufficient equity in existing property, it is acceptable for deposit funds to be raised by way of a remortgage or 2nd charge.

Gifted family deposit

Subject to:

• The amount is a non-refundable gift;

• The deposit funds are not from and have not been taken from a child’s bank/savings account;

• The individual making the gift will have no interest in the property; and

• Appropriate deed of gift indemnity insurance is put in place by the acting solicitor.

Director loan

Subject to:

• The individual is transferring a current/purchasing a new property into a company structure;

• Purchase price is at full market value to ensure tax liabilities are paid in full;

• The individual providing the director loan is a shareholder within the business;

• They are investing in the company by way of a director’s loan and it will be included in the subsequent company accounts;

• The difference between the mortgage and the purchase price is covered by the director loan; and

• The loan is non-interest bearing.

Inter-company loan

Subject to:

• The majority shareholder to mirror across SPV and connected company;

• Must be UK to UK company (no offshore companies);

• Loan needs to be repayable, and a term agreed with documented loan agreement;

• The term must not exceed that of the mortgage;

• Rate of interest applied should be HMRC’s ordinary rate of interest;

• Any monthly payment to be included in ICR calculation; and

• Connected company not to have any interest or charge over the Bank’s security.

Vendor deposit / Builder deposit / Builder incentive

The value of the incentive must be deducted from the purchase price or value whichever is lower, and lending based on the lower amount.

Property must be in a suitable condition to be let.

In England the property may be let under a single Assured Shorthold Tenancy (AST) or a contractual / common law tenancy. (i.e. company let or where annual rent is greater than £100,000).

In Wales, the property may be let under an Occupational Contract in accordance with the Welsh Government tenancy rules. Multiple tenancies are acceptable for HMOs and MUFBs.

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.

The fixed term must be no more than 36 months.

In the event of a term longer than 12 months the AST must contain a provision for rent review at no more than 12-month intervals, unless the loan is on a fixed rate equivalent to the length of the AST.

Applications where the tenants are family members of the customer will not be considered.

The Group will not consider applications where the tenants have or may acquire an overriding interest in the property.

Freehold

Houses and MUFBs 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.

Leasehold properties where the remaining lease term is less than 85 years will be accepted at a maximum 75% LTV.

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

For details of our complex buy to let panel please see our complex buy to let valuations document.

Standard valuation reports are for the sole purpose of enabling OSB Group 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 OSB Group. 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.