Accounts
For loans of up to £100,000, accounts provided by a bookkeeper will be accepted.
Additional Borrowing
Additional Borrowing will not be considered until the property has been fully completed and all stage monies released.
Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.
Additional Self Build criteria
Customers may only have one current pending Birmingham Midshires or TMB Self Build mortgage application at any one time. These mortgages are made available to borrowers who intend to build the property for their own occupation and for residential use only.
Additions to loan
The items that can be added on to the loan amount are higher lending charge (where payable) and product fee. The maximum amount of add-ons as a percentage of purchase price or valuation (whichever is lower) must not be more than 4%.
Affordability
The customer’s maximum borrowing is calculated using our affordability model. This takes into consideration the financial commitments of the customer and also their household expenditure.
Applicants
Minimum age: 18 years.
Maximum age: 65 years at the end of the mortgage term.
Assignable Contracts
Applications which involve assignable contracts or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Any other structure to the transaction which has a similar effect should be reported to us. Assignable contracts allow the original buyer to sell the property before legal completion, by assigning the contract to buy the property to a new buyer after contracts have been exchanged with the developer.
Conveyancers
In order to act jointly for both the customer and Birmingham Midshires, or to act solely for Birmingham Midshires, a conveyancer must be on the Lloyds Banking Group panel of conveyancers.
Definition of income
100% of basic salary, cost of living allowance, housing or rent allowance, service/state pensions and car allowance.
We also consider up to 60% of regular or non-guaranteed overtime, mortgage subsidy, bonus and commission. Exclusions - travel allowance and expenses.
Deposits
The deposit for any purchase should come from the applicant(s) own resources without recourse to further borrowing.
Any deposit coming from a directors loan account is not acceptable
Documentation required
All first time buyers:
- 3 months’ bank statements
If employed:
- Latest 3 payslips or latest payslip plus P60 or latest payslip plus 3 months’ bank statements
If self-employed:
- Latest 2 years’ accounts or 2 years’ Inland Revenue Self-assessments
All existing mortgage holders/local authority tenants:
- Latest lender’s or landlord’s statement
- Schedule and cost of works
- Plans and Planning Permission must be provided to the valuer for review on or prior to inspection of the plot/property. Planning Permission must be dated not more than one year prior to the date of application.
Household insurance
Property will only form an acceptable security if insurance cover, under normal terms including subsidence and flood cover is confirmed.
Interest
Interest is calculated on a daily basis.
Life cover
Applicant to satisfy themselves that they have made proper provision for cover.
Policies will not be assigned.
LTV/Loan Size
75% £25,001 to £1million.
Stage payments - the initial advance must not be more than 75% of the lower of the current plot value or purchase price, with the balance being released over no more than 4 additional stages up to a maximum 75% LTV during build and 75% LTV upon completion. A minimum 10% of the total loan will be retained, as a final release, until the property is complete and we are in satisfactory receipt of the final completion certificate.
Minimum loan - £25,001. Maximum loan - £1million. Detached Properties only.
Refurbishments and conversions not acceptable.
At the time of the valuers inspection, the land should be clear of any previous dwelling. If the build has started, it must be no further than footings/foundation level.
Minimum employment period
Employed applicants will be expected to have been employed for a minimum of 6 months in their current job and had 12 months continuous employment.
Self-employed applicants would be expected to have been self-employed for a minimum of 2 years. We may request additional information where considered appropriate and relevant to the lending decision.
Monthly payments
All payments must be made in sterling by direct debit through the UK direct debit system. The direct debit must be in place prior to completion.
Portability
All products are portable which means that the applicant can keep the same rate and term of their chosen mortgage if they move during the product period. If either the scheme or their circumstances change they may not be able to keep this product and any early repayment charges will be payable.
Proof of residence
If the applicant(s) is/are not on the voter’s roll at the current address, proof of residence must be provided: e.g. bank/building society statement credit card statement, or Council Tax statement.
Repayment methods
Repayment, interest only or combination. The method(s) for repaying interest only element must be specified
Security
Minimum acceptable property value or purchase price (whichever is the lower) is £40,000.
First mortgage on detached freehold properties in England, Wales and Northern Ireland, properties in Scotland.
Mortgages on flats/maisonettes, semi detached and terraced properties are unacceptable. Properties must be for residential use only. Second properties, Holiday Homes or properties which will be let are not acceptable.
We require that a newly built property (or one being occupied for the first time) has the benefit of building standards indemnity insurance, for example a 10 year warranty from the National House Building Council or Zurich Municipal Insurance. (For other acceptable Indemnity Insurance providers - please refer).The only exception to such indemnity insurance cover is where an architect or qualified surveyor is employed by the applicant to supervise the building of the property (Certain other qualified consultants may be acceptable - please refer).
Stage releases are subject to a satisfactory reinspection by our valuer and provision of the appropriate Architects certificate/Building Indemnity cover for that stage.
Term
5-40 years.