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Mortgage lending criteria

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Residential sections

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Buy to Let sections

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Personal details

Address History

3 year UK address history is required.

Age

Minimum Age: 18 years old. 21 years old for Professional Range.

Maximum: 80 years old.

Ex Pat

Not Accepted.

First Time Buyer

Accepted - Standard criteria.

Immediate Family Definition

Parents and grandparents, children and grandchildren, brothers and sisters. Adopted, in law, half, and step members are also included in the definition.

Married Applicants

Residential purchase applications where the spouse will be residing in the property, we require both to be on the mortgage, but are not required to be on the deeds.

Residential remortgage applications will be permitted on a sole applicant basis where the current ownership is in sole name.

Number of Applicants

Maximum of 4. 3rd and 4th applicants must be immediate family except on Joint Borrower/Sole Proprietor where they will be named on the Mortgage.

Maximum of 2 applicants on professional mortgage products.

Residency Status

Must be resident with Permanent rights to reside in the UK.

Settled/Pre-Settled Status under the EU settlement scheme is accepted.

Applicants on a Tier 2 visa can be considered for any residential product up to 75% LTV on a Capital and Interest basis provided they earn at least £75,000 and supply evidence of sponsorship. Under 3 years UK history can be considered for these applications subject to full underwriting assessment and meeting the minimum credit score requirement.

Loan details

Capital Raising

Limited to 90% LTV.

Debt Consolidation limited to 80% LTV. No Debt to Income Ratio limit.

Interest Only accepted for all capital raising reasons, standard interest only criteria applies.

We can consider 90% LTV for applications where the remaining part of the property is being obtained, such as staircasing to 100%, repaying a Help To Buy Loan or a Transfer of Equity.

Purpose of capital raising required; evidence may be requested.

If you are capital raising for an onward property purchase, funds will be released at the point required to complete the purchase to the solicitor acting. If the property is not yet found or there will not be a simultaneous completion, funds will be held on retention for a maximum of 6 months. The purchase solicitor will need to request funds, confirming the amount required and address of onward purchase at least 5 days prior to expected completion date.

Not available for speculative investment, payment of tax bill or business/commercial use.

Capital raising must be for the benefit of all parties to the mortgage.

Capital Raising on Unencumbered

Treated as remortgage. Fee Assist products (including Legal Assist, Free Valuations and Cashback) are not available unless the loan exceeds £150,000.

Deposit

Deposit must be from own resources.

Gifted Deposits are acceptable from:

  • An immediate family member
  • A joint borrower
  • A builders incentive for new build property up to 5% of purchase price.

A Metro Bank gifted deposit letter will be needed to be completed and additional source of funds maybe requested. Gifted deposits are unacceptable from family members that reside in the property unless they are on the mortgage as a joint borrower.

Deposits from Cryptocurrencies are not acceptable.

Fee-Assist

Our re-mortgage only range offers two specific fee-assisted options. Moving a mortgage to Metro Bank will result in legal and valuation costs. Please refer to our website for more information on our Fee-Assist options.

Gifted Equity/Concessionary Purchase

Accepted. Seller must be a close family member (non-family members accepted if named on mortgage as joint borrower). Gifted Equity can be used as deposit, a Gifted Deposit Form is required. Key the case with the market value and add a note stating the reduced sale price agreed and the relationship between parties.

Gifted Equity/Concessionary Purchase from family member if the property is held in LTD company name is not acceptable.

Guarantor

Not accepted, can consider joint borrower/sole proprietor applications.

Help To Buy - Armed Forces

Accepted. The monthly payment needs to be added as a commitment.

Please add a note via the 'Add a note' to confirm the source of deposit is Forces Help To Buy.

Holiday Letting (Airbnb)

On all residential mortgages we allow customers to let their whole property via Airbnb or similar for up to 90 days per annum.

Letting of part of the property or room is not allowed.

Interest Only - Non Sale of Property

Minimum Income of £50,000 required if any part of the loan is on Interest Only. This is total of all income sources from all applicants.

The maximum amount on interest only is 75% LTV.

The maximum LTV for part and part is 85% LTV.

Capital raising is accepted, maximum 85% LTV, except for Debt Consolidation where the maximum is 80% LTV.

Assets generated or held in a currency other than (£) sterling are not accepted as a Repayment Strategy.

Interest Only - Sale of Subject Property

Minimum Income of £50,000 required if any part of the loan is on Interest Only. This is total of all income sources from all applicants.

Sale of Subject Property accepted where there is a minimum property value of £600,000.

Interest only downsizing up to 50% LTV and up to a further 25% LTV using another interest only repayment strategy or capital and interest repayment.

If sale of property is being used as part of the repayment strategy then the maximum overall LTV is 75%.

Interest Only Acceptable Repayment Vehicles

The following will be accepted as suitable repayment vehicles, with no minimum property value:

Sale of other property(ies) (that are not the main home of the applicant or relatives) – equity must be equal to 120% of the mortgage amount. Properties must be in applicant(s) names only.

Sale of liquid investments or savings more than 12 months old - 100% of current value.

Pension - 25% of current value. Refer SIPPS.

Endowments - 100% of current value.

We require suitable evidence of the repayment strategy.

Interest Only Second Homes

Accepted. Maximum LTV 85%.

Where the second home is not for a relative then sale of the subject property is accepted as an interest only repayment strategy up to 75% LTV. With a further 10% available on capital and interest.

If the second home is for a relative then the standard interest only repayment strategies apply other than sale of subject property which is not accepted.

Joint Borrower/Sole Proprietor

Accepted.

Independent Legal Advice required for all joint borrowers.

The Joint Borrower(s) can reside in the property.

Joint Borrower/Sole Proprietor (JB/SP) is not available for capital raising unless for the benefit of all parties.

JB/SP is not available on our Professional Mortgage Range.

Interest only repayment vehicles must be in the name of the proprietor or family member(s) only.

Maximum of 2 households only (including the security property household on completion). 2 households needs to be selected as part of the application and expenses from both households need to be included on the system.

Let To Buy

Where a client applies for a residential purchase mortgage but will be letting their old residence out (rather than selling), the old main residential mortgage will be ignored if an ARLA letter shows rent will cover the mortgage repayments.

Loan Size

Minimum Loan: £50,000.

Maximum Loan: None, we can consider loans of any amount.

LTV Loan Limits

Maximum 95% Up to £675,000 loan amount

Maximum 90% Up to  £ 1,125,000 loan amount (£675,000 loan amount for New Builds)

Maximum 85% Up to £2,000,000 loan amount (£1,000,000 loan amount for New Builds)

Maximum 80% Up to £2,000,000 loan amount

Maximum 75% Up to £2,500,000 loan amount

Maximum 70% Up to £5,000,000 loan amount

Maximum 65% Up to £10,000,000 loan amount

Subject to Product Availability

Near Prime

This range is designed for people with less than perfect credit profiles.

Purchase and Remortgage.

Maximum Loan £500,000.

Capital and Interest Only.

4.45 X Income Multiple.

Maximum 80% LTV.

Lower credit score requirement.

Please refer to credit history section for acceptable credit profiles.

Joint Borrow/Sole Proprietor accepted.

Other Criteria remains the same, max age, term, number of applicants etc.

Offer Extensions

Considered subject to:

Extension request received from Solicitor with reason for delay and confirmed completion date.

Confirmation there has been no change in the customers circumstances from the customer.

Up to date income documents (such as latest payslip) and latest bank statement.

Revaluation fee, if valuation over 6 months old.

If the extension is only for a short period we will normally allow for the same product to be used. For longer extensions a new product maybe needed to be selected.

Offers Validity Period

New Build properties 270 days from the date of the completed valuation.

All other properties 180 days from the date of the completed valuation.

If you choose to instruct the valuation at the point of application submission, using the Instruct Valuation button, the 180 days (or 270 days for new build) commences from the date of the completed valuation and as a result could impact the offer validity period.

Professional Mortgages

For fully qualified, registered and practicing Solicitors, Barristers, Medical Doctors, Accountants, Actuaries, Vets, Dentists, Surveyors, Architects and Engineers.

Maximum 2 applicants – 1 applicant needed to meet professional requirements.

5.5 times earned income – applies to both applicants, if the professional is the higher income earner (subject to affordability). If the non-professional is the higher income earner the 5.5 times income will be applied to the professional applicant only at underwriting stage.

Only Income from employment accepted - includes Self-Employed, Contractor, Limited Company and/or Employed.

Minimum Age – 21 years old.

All applicants must be named on the deeds.

Available for purchase and remortgage, including capital raising.

Professional(s) must have qualified within the last 10 years.

Professional(s) employed in a role without their qualification as their job title will be considered on an individual basis. E.g. a fully qualified accountant working as a senior finance manager would be considered for a Professional Mortgage.

Professional(s) must be registered with one of the registered bodies below:

Barristers
The Bar Council

Actuaries
The Institute and Faculty of Actuaries (IFoA)

Accountants
Institute of Chartered Accountants England & Wales
Institute of Chartered Accountants Scotland
Chartered Institute of Management Accountants
Association of Chartered Certified Accountants
Chartered Institute of Public Finance and Accountancy
Institute of Financial Accountants

Medical Doctors
General Medical Council

Solicitors
Law Society of Northern Ireland
Law Society of England & Wales
Law Society of Scotland

Dentists
General Dental Council (GDC)

Vets
Royal College of Veterinary Surgeons (RCVS)

Engineers
Institute of Engineering and Technology Incorporated Engineers (IEng)
Institute of Engineering and Technology Chartered Engineers (CEng)

Surveyors
Royal Institute of Chartered Surveyors (RICS)

Architects
Architects Registration Board (ARB)

Retentions

Any withheld proportion of mortgage must be drawn within 6 months of the completion date.

Second Mortgage Affordability

Accepted.

Background mortgage payment and household expenditure needs to be included when calculating the maximum loan affordable.

If more than one mortgage held with Metro Bank, then the lending will need to meet the applicable loan to income multiple across all lending.

Term

Minimum: 5 Years.

Maximum Capital and Interest: 40 Years.

Maximum Interest Only or Part and Part: 35 years.

The whole loan must be on the same term.

Second Home for Personal Use

Accepted max 85% LTV.

We will accept up to 75% LTV on Interest Only (with sale of property as a repayment strategy) with an additional 10% on capital and interest repayment. No Minimum property value.

Affordability calculation needs to cover both mortgage balances.

Second Home for Dependent Relative

Accepted max 85% LTV.

We will accept up to 75% LTV on Interest Only with an additional 10% on capital and interest repayment. Sale of subject property is not accepted as a repayment strategy.

Affordability calculation needs to cover both mortgage balances.

Second Home for Relative

Accepted max 85% LTV.

We will accept up to 75% LTV on Interest Only with an additional 10% on capital and interest repayment. Sale of subject property is not accepted as a repayment strategy.

Affordability calculation needs to cover both mortgage balances.

Relative can be a joint borrower and reside. If a joint borrower they can also provide a gifted deposit/equity.

Shared Ownership

Not accepted, unless staircasing to 100% ownership. Maximum LTV is 95%.

Employment/Income

Bank Workers

Available to Nurses Only.

If Bank Work is a second job treated as overtime, 60% taken into account for affordability. This can be either the total of the last P60 or the year to date figure (not annualised).

If Primary/Only Income, 2 P60s required. Average of last 2 years P60's or the year to date figure used for affordability where payslips confirm at least the same level of income is being received.

Benefit Income

Disability Living Allowance or Personal Independence Payment is accepted, if guaranteed for the life of mortgage and awarded to a person named on the mortgage.

All other benefits are not accepted.

Bonus/Commission/Overtime

Accepted, 60% taken into account for affordability. This can be either 60% of the total of the last P60 minus the basic or the year to date figure in the current tax year, minus the year to date basic (not annualised) or current years bonus payslip.

Bursary Income

Not accepted.

Capital Gains

Accepted where sustainable. Minimum 3 year track record and proof of ongoing sustainability.

Car Allowance

Accepted. 100% used for affordability.

Contractors

Accepted.

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over the last 12 months.

A 12 month contract history is not required for applicants who can evidence 12 months continuous history working within the same industry as evidenced by Contracts, P60’s or SA100 (Tax return with IR Mark).

Contracts must have a start date.

If current contract has less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained. If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks.

Income calculated as a daily rate over 46 weeks based on 5 day working week (unless the contract restricts the applicant to less than this).

We require evidence of the current contract, 12 months same industry history and 1 months Bank statement showing receipt of contract income at level keyed.

Contractors - Umbrella Companies

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over last 12 months.

A 12 month contract history is not required for applicants who can evidence 12 months continuous history working within the same industry as evidenced by Contracts, P60 or SA100 (Tax Return with IR Mark).

Contracts must have a start date.

If current contract as less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained. If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks.

Income will be assessed as guaranteed income (hourly/ daily rate multiplied by guaranteed hours/ days).

We require evidence of current contract, 12 months over last 12 months history and 1 months Bank statements showing receipt of contract income at level keyed. Payslips maybe requested where the payment on the bank statement differs from the contract after tax and national insurance has been deducted.

Contracts - Fixed Term

Accepted where customer is working directly for their end client on a PAYE basis.

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over last 12 months.

A 12 month contract history is not required for applicants who can evidence 12 months continuous history working within the same industry as evidenced by Contracts, P60 or SA100 (Tax Return with IR Mark).

Contracts must have a start date.

If current contract as less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained. If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks.

Income will be assessed as guaranteed income (hourly/ daily rate multiplied by guaranteed hours/ days).

We require evidence of current contract, 12 months same industry history and 1 months Bank statements showing receipt of contract income at level keyed.

Contracts - Zero Hours

Not accepted.

Fixed Allowance

Accepted at 100% if contracted and the same on every payslip.

If a varible amount we can consider at 60%. Refer to Bonus, Commission and Overtime criteria.

Foreign Currency

Not accepted.

Foster Income

Not accepted.

Income Multiples

All income multiples are 4.45x unless stated below:

 

House Purchase and Remortgage Ranges

House Purchase and Remortgage Ranges

Large Loan Range

Professional Range

Loan to Income Multiplier

5x

5.5x

5.5x

5.5x

1 Applicant

>=£90,000

>=£100,000

No minimum income

Must meet Professional criteria

2 Applicants

3 Applicants

>=£100,000

>=£150,000

N/A

4 Applicants

Max LTV

85%

85%

85%

90%

New Build - Flat Maximum 85% LTV.

New Build - House Maximum 85% LTV.

Investment Income

Accepted at 5% of fund value.

Maximum term of 20 years.

Minimum managed portfolio value of £250,000.

Funds containing individual properties will have the value of the property excluded.

Highly volatile funds such as currency exchange, single stock or venture capital trusts, will be excluded.

Stand alone cash savings are not classed as an investment.

Large Town Allowance

Accepted. 100% used for affordability.

Lending into Retirement

If the applicant retires before the end of the mortgage term in order to confirm the affordibility in retirement, we will calculate the mortgage balance at the point of retirement using Metro Bank's stress rate and assess if the current level of retirement income is sufficient to meet the affordability assessment. We do not accept projections.

Earned income is accepted up to the age of 80 subject to a plausibility check that the applicant can continue in the current line of work until the declared retirement age. Retirement age will be capped for manual positions including driving and those with advertised retirement ages.

Maintenance Income Court Order

Accepted, if guaranteed for the life of mortgage. 100% used for affordability.

Maintenance Income No Court Order

Not accepted.

Minimum Income

Capital and Interest: No minimum income required.

Interest Only/Part and Part: Application must have a minimum usable income £50,000.

Mortgage Subsidy

Accepted.

Other committed income/assets/drawdown sources

These can be considered on an individual basis. Please contact us to discuss.

Parental Leave including Adoption Leave

Last payslip prior to leave and an employers letter that needs to confirm return to work date, salary, hours and no changes to terms and conditions.

Evidence of sufficient income/savings to cover any reduction in income during leave period required if not returning within 3 months.

Pension - Defined Benefit/Final Salary

Accepted. 100% of current level being received or if not yet drawn proof of eligibility to draw and we will use the amount left assuming the maximum tax free lump sum is taken.

Pension - SIPP

Accepted.

5% of the current fund value.

Must be over 55 years old.

Maximum term of 20 years.

The value of any individual properties held within a SIPP will be excluded from the fund value.

Pension - State

Accepted. 100% of current level being received or if deferred the amount stated they can draw on last annual update.

Rental Allowance

Not accepted.

Rental Income

Accepted, 100% of latest year. Calculated as profit from land and property after removing any dis-allowable expenses - such as finance costs.

To be evidenced via most recent SA100 (submitted tax return) with Inland Revenue (IR) mark paired with the tax year overview. Box 40 minus Box 44 of the rental section.

Where the disallowed expenses/finance costs section (Box 44) is blank or does not meet the annualised mortgage costs of BTL's held then the income should be keyed as the profit (Box 40) and the BTL mortgage payment(s) should be added as a commitment.

Lodger’s income not accepted.

Rental income paid in cash is not accepted.

Second Job

Accepted – 100% if 6 month track record of working two jobs and sustainable.

Self-Employed

Sole Traders, Limited Company Shareholders and Partners Accepted.

Applicants classed as self employed if own 25% or more of a limited company.

2 years trading is required with a minimum of 2 years finalised figures.

The self employed income used for the application will be the maximum of the average last 2 or 3 years, which ever is the higher.

Self-Employed - Limited Company Directors

Profit before taxation plus directors remuneration can be considered for affordability if 100% of shareholders are on the mortgage and sustainability of the business can be confirmed.

Director’s remuneration plus average dividend for last 2 or 3 years is used for affordability where there is less than 100% ownership.

A Metro Bank Accountants Certificate or 1/2 years full company accounts submitted and registered with Companies House or 2/3 years tax calculations and overview with a covering letter from the verified accountant and the latest business Bank statement dated within the last 30 days are required.

Self-Employed - Partner in LLP

Where firm is a national large recognised LLP we can use Current Drawings and Partnership Profit Share, with no minimum time working within the LLP assessed on a case by case basis.

Letter from CFO/Financial Director confirming when became an equity partner, percentage ownership, current drawings and the partnership profit share they would have earned at that level of ownership for the last 2 years.

Income used will be current drawings and latest years profit share.

Self-Employed - Partnerships

Profit from Partnership. A minimum of 2 years trading required with 2 years fully submitted figures. We will use an average of the last 2 or 3 years figures (whichever is the higher) for affordability.

The latest months business bank statement dated within the last 30 days and Metro Banks Accountants Certificate or 1/2 years full partnership accounts or 2/3 years partnership tax returns required.

Self-Employed - Sole Traders

Profit from Self-Employment. A minimum of 2 years trading required with 2 years fully submitted figures. We will use an average of the last 2 or 3 years figures (whichever is the higher) for affordability.

The latest months business bank statement dated within the last 30 days and Metro Bank Accountants Certificate or 2/3 years Tax Calculations with accountants letter or 2/3 years SA100 (tax returns) with Inland Revenue mark required (where no accountant is used).

Self-Employed Accepted Accountant Qualifications

Main accountants’ qualifications accepted. These apply when using profit before tax, a Metro Bank Accountants Certificate or a covering letter is required from the accountant.

- Institute of Chartered Accountants England & Wales

- Institute of Chartered Accountants Scotland

- Chartered Institute of Management Accountants

- Association of Chartered Certified Accountants

- Chartered Institute of Public Finance and Accountancy

- Institute of Financial Accountants

- Association of Accounting Technicians

Stipend Income

Not accepted.

Supply Teachers

Accepted if over 3 years. Average of last 3 years income used for affordability.

Time in Employment

No minimum time with current employer at least the 1st full months payslip required.

6 months of continued employment.

Probation Periods accepted.

Trust Income

Accepted, must be guaranteed for term of mortgage and evidenced through Trust Deed, Trust Accounts and Investment Portfolio Reports showing underlying assets.

Valuations

A valuation will be required for each application. Please refer to our website for more information on Valuations including fee scale.

Credit history

General Account Conduct

Evidence of the following are unacceptable:

Reliance on Cash Advances from unsecured facilities such as Credit Cards.

Evidence of declined payments.

CCJs

Satisfied:

£1,000 maximum total value across any number of CCJs satisfied within last 36 months.

Unlimited maximum total value across any number of CCJs satisfied over 36 months ago.

Unsatisfied:

£500 maximum total value across any number of CCJs.

No requirement to satisfy prior to application.

Defaults

Satisfied:

£1,000 maximum total value across any number of Defaults satisfied within last 36 months.

Unlimited maximum total value across any number of Defaults satisfied over 36 months ago.

Unsatisfied:

£500 maximum total value across any number of Defaults.

£1,000 maximum total value across any number of Defaults on Near Prime Range only.

No requirement to satisfy prior to application.

Missed or Late Payments

Unsecured/Secured/Mortgages:

Up to a maximum status of 2 in the last 24 months, no cumulative limit across all accounts.

Note: Arrears on communication and utilities are ignored on Near Prime Range Only.

IVA

Satisfied:

Acceptable.

Unsatisfied:

Not acceptable.

Debt Management Plan Arrangement to Pay Debt Relief Order

Satisfied:

Acceptable.

Unsatisfied:

Not acceptable.

Bankruptcy

Discharged:

Acceptable only when bankruptcy order was over 36 months ago.

Protected Trust Deed (Scotland)

Satisfied:

Acceptable.

Unsatisfied:

Unacceptable.

Repossession

Acceptable only 72 months after repossession.

Payday Lending

Not acceptable.

Scoring

All applications are subject to application score card, referenced against Equifax credit agency. This is a soft search at AIP stage and a hard search at FMA stage.

Commitments/Debt

BTLs in Background

Need to demonstrate that any BTLs are self-financing by way of 1 months bank statements showing mortgage payments and rent received. (Rent received in cash not accepted).

Childcare and School Fees

Taken as commitment.

Credit Cards

Deducted as a commitment at 3% of outstanding balance if to remain.

Debt Consolidation

A debt consolidation form will be required.

Debt to Income Ratio

No limit applied.

Debts being Cleared from Advance

These will not be included in the affordability calculation.

Debt to Remain

Any debts remaining on completion are included as a commitment.

Any debts with less than 3 months to remain can be ignored.

Let to Buy (Existing Residential Mortgage)

Existing main residence mortgage will be ignored if a letter from an ARLA registered agent shows the rent will cover the mortgage repayments once the customer moves out.

If a new mortgage is being taken out on the property, a Mortgage Illustration will need to be provided and the rental will need to cover the new mortgage payment. The offer for the new mortgage will be required prior to completion.

Evidence of consent to let maybe requested when existing mortgage is being retained on residential terms.

Non Simultaneous Sale & Completion

Treated as running 2 houses and affordability calculation will take into account both mortgage payments and household running costs (if applicable).

Pension Payments

Not taken as a commitment.

Second Mortgage

Affordability calculation needs to cover both mortgages.

Monthly Mortgage Payment for background property to be added as a remaining commitment.

Expenditure for both households will need to be added together to complete the application.

Property

Adapted Properties

Subject to surveyor's comments on future saleability. Heavily Adapted Properties will not be accepted.

Agricultural Ties

Not accepted.

Annex

Accepted subject to surveyor's comments if in keeping with the property.

Must be for own/family use.

Must not have separate council tax or utilities.

Must not have its own access/driveway.

Armed Forces Help to Buy

Accepted. Monthly payment needs to be added as a commitment.

Assignment of Contract

Not accepted.

Balcony Access

Accepted subject to surveyor's comments.

Bed & Breakfast

Not accepted.

Cast in Situ Concrete

Accepted, such as Wimpey No-Fines & Laing Easiform subject to surveyor's comments.

Commercial Property - near or adjacent to

Accepted - subject to surveyor’s comments that the property and location does not adversely affect saleability.

Common Hold

Not accepted.

Contaminated Land

Not accepted.

Deck Access

Accepted subject to surveyor's comments.

Defective

Not accepted.

Properties defective under the 1984 Housing Act:

Airey
Boot
Boswell
Cornish Unit (1)
Cornish Unit (2)
Dorran (1)
Dorran (2)
Dyke
Gregory
Myton (1)
Myton (2)
Newland (1)
Newland (2)
Orlit
Parkinson
Reema Hollow Panel
Schindler & Hawksley SGS
Smith
Stent
Stonecrete
Tarran
Tarran (2)
Underdown
Unity & Butterley (1)
Unity & Butterley (2)
Waller
Wates
Wessex (1)
Wessex (2)
Winget
Woolaway

EWS1 Guidance

We rely upon the professional opinion of our panel surveyor to identify if a property identifies the presence of any aluminium composite material, or potentially combustible cladding/fire safety concerns. If this is the case then an EWS1 form will be required. The EWS1 form will need to be prepared by a suitably qualified independent professional advisor who is a member of one of the professional body approved by the Ministry of Housing, Communities and Local Government (MHCLG ) and provided by the building owner/agent.

We require a fully completed EWS1 form (of an A1, A2 or B1 rating) completed by an appropriate signatory (see the RICS website for a list of relevant professional bodies for completion of an EWS1 Form). If the form is not lodged on the FIA portal then we also require a covering letter from the signatory confirming the information contained in the EWS1 form.

Ex Local Authority

Houses accepted. Flats accepted subject to a maximum number of stories in the block of 6. Balcony/Deck access accepted subject to surveyor’s comments.

Flats - Maximum Number of Floors

No Maximum except Ex -Local Authority where the maximum is 6. If the building has more than 4 stories it must have a lift.

Accepted at standard LTVs.

Floor Area

Minimum Gross Internal Area of 35m2.

Flying Freehold

Maximum 20% of total floor area can be on a flying freehold.

Freehold Flats/Coach Houses

Not accepted or where the Leaseholder 'or an associated party' also controls the freehold. This includes where the ownership of the freehold is through a Limited Company.

Share of freehold accepted as long as in line with number of flats in the block. Such as if 25% share is owned and there are 4 flats in the block this is acceptable. If over 25% of the freehold is owned and there are 4 flats in the block this is not acceptable.

Ground Rents

New builds/conversions must have an initial minimum lease term of 125 years;

The maximum initial ground rent should initially be no more than 0.25% of market value; For Leases granted after 30 June 2022, ground rent must be "peppercorn", in line with the Leasehold Reform (Ground Rent) Act 2022;

The ground rent must not be reviewed less than every 10 years;

The ground rent must only be reviewed in line with the RPI or equivalent;

Event fees can only be based on the reasonable administration costs incurred.

Holiday Lets

Not accepted.

Holiday Letting (Airbnb)

Accepted on Residential mortgages for up to 90 days per annum as per standard mortgage terms and conditions.

Inherited Properties

Property still in deceased name: treat as a purchase with inherited share used as deposit. Solicitor to confirm details of inheritance.

If property in applicants name: treat as a remortgage, capital raising for reason other than paying off other inherited parties is not accepted. Valuation used will be the lower of inheritance valuation or our mortgage valuation.

Japanese Knotweed

Category D (Report) - Acceptable. Japanese Knotweed was not seen on this property, but it can be seen on a neighbouring property or land where it was within 3 meters of the boundary.

Category C (Manage) - Acceptable. Japanese Knotweed was identified within the boundaries of this property, but it is not causing visible, material damage to the structure and is not likely to prevent access to or restrict use of amenity space.

Category A and Category B (Action) - Unacceptable unless appropriate treatment plan provided by a company affiliated to either the Property Care Association Invasive Weed Group or the Invasive Non-Native Species Association (INNSA) in place. The treatment plan must be paid for in full prior to Metro Bank releasing funds and benefit from a 5 year warranty/insurance backed guarantee.

Key Worker scheme

Not accepted.

Kitchens (More than one)

Accepted, if in annex or in keeping with the property subject to surveyor's comments; otherwise not accepted.

Leasehold

Minimum 50 years unexpired term on lease at end of mortgage term, subject to surveyor's comments.

Listed Buildings

Grade I, II* and II (A, B and C in Scotland) accepted - subject to full valuation and surveyor’s comments.

Live/Work Units

Not accepted.

Location of Lending

Mainland England, Wales and Scotland.

For Scotland we will not lend in the following postcodes:
Western Isles (HS)
Highlands (KW & ZE)

We currently do not accept transcripts.

Mineshafts

Not accepted where there is an uncapped mineshaft that affects the property.

Modern Methods of Construction

Accepted, subject to:

Planning and building regulation compliance.

An acceptable building standards warranty scheme being available.

Buildings insurance being obtainable under normal terms.

A minimum design life of 60 years as confirmed by a British accredited body (i.e. BRE, BOPAS).

Saleability confirmed by the surveyor.

Being situated in a suitable location as defined by the surveyor.

New Build definition

Property built/converted in last 12 months (based on completion certificate) and being occupied for the first time.

New Build - Flat

Maximum 90% LTV. Maximum loans of £1,000,000 at 85% LTV and £675,000 at 90% LTV.

New Build - House

Maximum 90% LTV. Maximum loans of £1,000,000 at 85% LTV and £675,000 at 90% LTV.

New Build Incentives

Builder Incentives accepted up to 5% of the purchase price. Builder incentive can include builders deposit contribution, white goods, carpets and curtains, cashback, legal fees and a contribution towards stamp duty.

New Build warranties/guarantees

Properties that have been built or converted in the last 10 years require suitable warranties/guarantees to be in place.

Acceptable Warranties:
NHBC; LABC; New Home Warranty; Build Zone; Premier Guarantee; Building Life Plan; Checkmate Castle; Advantage Warranties; Global Home Warranties; The Q Policy; Build Assure; International Construction Warranties; Protek and Aedis Warranties.

Find out more here.

Non Habitable Condition

Not accepted - property has to be secure; structurally sound; insurable; have a working kitchen with running water, storage and ability to heat food; have a working bathroom with working lavatory, sink and ability to shower or bath and subject to surveyor's comments.

Non Residential Use

Accepted. Maximum 25% of the overall property size.

Own Limited Company Purchase

Not accepted.

Property owned as Tenants in Common

Not accepted.

Property owned in Trust

Not accepted.

Remortgage within six months

Not accepted.

Restrictive Covenants/Title

Not accepted.

Right To Buy/Right to Acquire

Not accepted. Which includes during pre-emption or right of refusal period.

Self Build

Not accepted, unless completed and covered by a suitable structural new build warranty.

Land would need to have been owned for at least 6 months.

Single Skin

Not accepted.

Shared Equity/Ownership

Not accepted unless staircasing to 100% ownership.

Solar Panels

Accepted, providing no lease agreement exists.

Steel Framed

Accepted, subject to a structural report from a suitably qualified engineer (MICE, FICE, MIStructE, FIStructE) or a Chartered Building Surveyor (MRICS, FRICS) is required to confirm if it is of an acceptable standard for mortgage purposes and surveyor's comments on marketability and the suitability of the security for mortgage lending.

Studio Flats

Accepted. Minimum Gross External Area of 35m2.

Thatched Roof

Accepted, subject to surveyor’s comments.

Timber - Framed

Accepted, with durable outer leaf, subject to surveyor's comments on marketability and the suitability of the security for mortgage lending.

Properties which are all timber are not acceptable.

Under-pinned

Properties under-pinned in the last 10 years are not accepted unless covered by a 20 year guarantee.

Personal details

Address History

3 year UK address history is required.

Age

Minimum Age: 21 years old.

Maximum Age: 85 years old.

Ex Pat

Not accepted.

First Time Buyer

At least one applicant named on the deeds needs to be an owner occupier on completion.

First Time Landlord

Accepted.

Immediate Family Definition

Spouse, parents and grandparents, children and grand-children, brothers and sisters. Adopted, in law, half, and step members are also included in the definition.

Number of Applicants

Maximum of 4.

Maximum of 2 applicants on cases where earned income is used to support rental shortfalls (Top Slicing).

Residency Status

Must be resident with Permanent rights to reside in the UK.

Settled/Pre-Settled Status under the EU settlement scheme is accepted.

Owner Occupier

Must be an owner-occupier or be an experienced landlord.

For JBSP the person on title must be an owner occupier or have an other BTL.

Loan details

Capital Raising

Limited to 75% LTV including Debt Consolidation. No Debt to Income Ratio limit.

Interest Only available for all accepted capital raising reasons.

Purpose of capital raising required; evidence may be requested.

If you are capital raising for an onward property purchase, funds will be released at the point required to complete the purchase to the solicitor acting. If the property is not yet found or there will not be a simultaneous completion, funds will be held on retention for a maximum of 6 months. The purchase solicitor will need to request funds, confirming the amount required and address of onward purchase at least 5 days prior to expected completion date.

Not available for speculative investment, payment of tax bill or business/commercial use.

Capital raising must be for the benefit of all parties to the mortgage.

Capital Raising on Unencumbered

Treated as remortgage. Fee Assist products (including Legal Assist, Free Valuations and Cashback) are not available unless the loan exceeds £150,000.

Consumer Buy to Let

Accepted.

Metro Bank provide regulated Consumer Buy to Let mortgages.

Metro Bank defines a Consumer Buy to Let Mortgage as a Buy to Let mortgage where both of the following are true:

Any applicant or a close family relative of the applicant(s) have resided in the property since acquirement/ purchase, or the property has been inherited.

AND

At least one of the applicants does not own any other Buy to Let properties.

Deposit

Deposit must be from own resources.

Gifted Deposits are acceptable from:

  • An immediate family member
  • A joint borrower
  • A builders incentive for new build property up to 5% of purchase price.

A Metro Bank gifted deposit letter will be needed to be completed and additional source of funds maybe requested. Gifted deposits are unacceptable from family members that reside in the property unless they are on the mortgage as a joint borrower.

Deposits from Cryptocurrencies are not acceptable.

Fee-Assist

Our re-mortgage only range offers two specific fee-assisted options. Moving a mortgage to Metro Bank will result in legal and valuation costs. Please refer to our website for more information on our Fee-Assist options.

Gifted Equity/Concessionary Purchase

Accepted. Seller must be a close family member. Gifted Equity can be used as deposit, a Gifted Deposit Form is required. Key the case with the market value and add a note stating the reduced sale price agreed and the relationship of the family member.

Gifted Equity/Concessionary Purchase from family member if the property is held in LTD company name is not acceptable.

Guarantor

Not accepted, can consider joint borrower/sole proprietor applications.

Interest Only - Sale of Subject Property

Sale of Subject Property accepted up to 75% LTV.

Interest Only Acceptable Repayment Vehicles

The following will be accepted as suitable repayment vehicles:

Sale of other property(ies) (that are not the main home of the applicant or relatives) – equity must be equal to 120% of the mortgage amount. Properties must be in applicant(s) names only.

Sale of liquid investments or savings more than 12 months old - 100% of current value.

Pension - 25% of current value. Refer SIPPS.

Endowments - 100% of current value.

We require suitable evidence of the repayment strategy.

Joint Borrower/Sole Proprietor

Accepted.

Independent Legal Advice required for all joint borrowers.

The Joint Borrower(s) cannot reside in the property. Joint Borrower/Sole Proprietor is not available for capital raising unless for the benefit of all parties.

Joint borrower can provide a gifted deposit.

Maximum of 2 households only (excluding the security property household on completion) expenses from both households need to be included in the online budget planner.

The person named on the deeds must be an owner occupier or experienced landlord.

Let To Buy

Where a client applies for a BTL Remortgage to let their current residence out (rather than selling) and purchasing a new main residence, a copy of the onward purchase ESIS will be required.

Completion of both mortgages must be simultaneous.

Loan Size Minimum

Loan: £100,000.

Maximum Loan: None, we can consider loans of any amount subject to maximum annual rent of £100,000.

LTV Loan Limits

Maximum 80% Up to £500,000 loan amount (not accepted for new lending)

Maximum 75% Up to £2,000,000 loan amount

Maximum 70% Up to £2,500,000 loan amount

Maximum 65% Up to £3,000,000 loan amount

Maximum 60% Up to £10,000,000 loan amount

Maximum 50% Over £10,000,000 loan amount

Subject to Product Availability

Maximum Accepted Rent

£100,000 per annum.

Offer Validity Period

New Build properties 270 days from the date of the completed valuation.

All other properties 180 days from the date of the completed valuation.

If you choose to instruct the valuation at the point of application submission, using the Instruct Valuation button, the 180 days (or 270 days for new build) commences from the date of the completed valuation and as a result could impact the offer validity period.

Offer Extensions

Considered Subject to:

Extension request received from Solicitor with reason for delay and confirmed completion date.

Confirmation there has been no change in the customers circumstances from the customer.

Up to date income documents (such as latest payslip) and latest bank statement.

Revaluation fee, if valuation over 180 days old.

If the extension is only for a short period we will normally allow for the same product to be used. For longer extensions a new product maybe needed to be selected.

Portfolio Buy to Let

Accepted. This is classed as any Buy to Let application where the applicants will own either in sole name or jointly, the sum of 4 or more Buy to Let properties with mortgages on completion, this includes any Buy to Let properties owned in Limited Companies where the applicant(s) holds a personal guarantee. Please complete the Portfolio Landlord Document Pack and provide 3 months bank statements.

Portfolio Size

Maximum portfolio size of 10 of which a maximum of 5 can be mortgaged properties with Metro Bank or maximum of £5 million of BTL lending with Metro Bank, whichever binds first.

Rent in Cash

Not accepted.

Rental Calculation

 

Fixed Rate

Case Type

Assessment

ICR

Stress Rate

< 5 year

Purchase / Additional Borrowing

Self-funding

140%

Product pay rate + 2% (minimum 5.5%)

< 5 year

Purchase / Additional Borrowing

Top-slicing

100%

Product pay rate + 2% (minimum 5.5%)

< 5 year

£4£ Remortgage

Self-funding

140%

Product pay rate + 0.5% (minimum 5.5%)

< 5 year

£4£ Remortgage

Top-slicing

100%

Product pay rate + 0.5% (minimum 5.5%)

> = 5 year

Purchase / Additional Borrowing

Self-funding

140%

Product pay rate + 0.5% (minimum 5.5%)

> = 5 year

Purchase / Additional Borrowing

Top-slicing

100%

Product pay rate + 0.5% (minimum 5.5%)

> = 5 year

£4£ Remortgage

Self-funding

140%

Product pay rate + 0.5% (minimum 5.5%)

> = 5 year

£4£ Remortgage

Top-slicing

100%

Product pay rate + 0.5% (minimum 5.5%)

All

Background portfolio

Portfolio landlords only

140%

5.5%

All

Background portfolio

Portfolio Top-slicing

100%

5.5%

For Background Portfolio (Non - Portfolio Landlords), there is no stress rate however rental received needs to cover mortgage payment.

Retentions

Any withheld proportion of mortgage must be drawn within 6 months of the completion date.

Self Financing

For Self Financing Non Portfolio BTLs - Income Proof is not required, however an allowable income other then property rental must be declared on the application.

One months bank statement dated within the last 30 days for each applicant showing expenditure is required on every case.

Tenancy

Single AST (Short Assured Tenancy/Private Residential Tenancy in Scotland) - Multiple tenancies not accepted.

Maximum of 36 months which must contain an annual break clause and be regulated by the Housing Act 1988.

Other forms of tenancy are not acceptable, for example Common Law Tenancies, typically used when letting to a company, where the annual rent is more than £100,000 or where the landlord is a resident.

Tenants

Maximum of 5 adults forming a single household.

Family members, corporate, HMOs, student lets, holiday lets and individuals with diplomatic immunity are not accepted.

Rental paid in cash not accepted.

Term

Minimum: 5 Years.

Maximum: 35 years.

The whole loan must be on the same term.

Top Slicing

Accepted. Please use the online calculator to confirm the maximum loan available to your customer.

Maximum of 2 applicants.

Rent must be equal to, or greater than, 100% cover of the mortgage interest amount calculated at the stress rate for the product selected.

Portfolio Top-slicing - accepted, rent must be equal to, or greater than, 100% cover of the mortgage interest amount calculated at 5.5%.

Minimum income of £50,000 for a single application, or £75,000 for a joint application. (Income from rent is not permitted to support top-slicing).

Earned income only accepted up to age 80 to support Top-slicing.

Employment/Income

Bank Workers

Available to Nurses Only.

If Bank Work is a second job treated as overtime, 60% taken into account for affordability. This can be either the total of the last P60 or year to date figure (not annualised).

If Primary/Only Income, 2 P60s required. Average of last 2 years P60's used for affordability where payslips confirm at least the same level of income is being received.

Benefit Income

Disability Living Allowance or Personal Independence Payment is accepted, if guaranteed for the life of mortgage and awarded to a person named on the mortgage.

All other benefits are not accepted.

Bonus/Commission/Overtime

Accepted, 60% taken into account for affordability. This can be either 60% of the total of the last P60 minus the basic or the year to date figure in the current tax year, minus the year to date basic (not annualised) or current years bonus payslip.

Bursary Income

Not accepted.

Capital Gains

Accepted where sustainable. Minimum 3 year track record and proof of ongoing sustainability.

Car Allowance

Accepted. 100% used for affordability.

Contractors

Accepted.

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over the last 12 months.

A 12 month contract history is not required for, applicants will need to evidence 12 months continuous history working within the same industry as evidenced by contracts, P60’s or SA100 (Inland Revenue Tax Return with IR Mark).

Contracts must have a start date.

If current contract has less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained . If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks.

Income calculated as a daily rate over 46 weeks based on 5 day working week (unless the contract restricts the applicant to less than this).

We require evidence of the current contract, 12 months history of same industry experience and 1 months Bank statements showing receipt of contract income at level keyed.

Contractors - Umbrella Companies

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over last 12 months.

A 12 month contract history is not required for applicants who can evidence 12 months continuous history working within the same industry as evidenced by P60’s.

Contracts must have a start date over last 12 months.

If current contract as less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained. If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks.

Income will be assessed as guaranteed income (hourly/ daily rate multiplied by guaranteed hours/ days).

We require evidence of current contract, 12 months same industry history and 1 months Bank statements showing receipt of contract income at level keyed. Payslips maybe requested where the payment on the bank statement differs from the contract after tax and national insurance has been deducted.

Contracts - Fixed Term

Accepted where customer is working directly for their end client on a PAYE basis.

Current contract must be at least 3 months in length. If contract has no end date it must have been running for at least 3 months.

No more than 6 weeks of gaps in contracts over last 12 months.

A 12 month contract history is not required for applicants who can evidence 12 months continuous history working within the same industry as evidenced by contracts, P60’s or SA100 (Tax Return with IR Mark).

Contracts must have a start date.

If current contract as less than 4 weeks to run we may require evidence that it has been renewed or a new contract obtained. If current contract has no end date we will look to confirm it has at least 4 weeks notice period or request confirmation that the contract will run for at least another 4 weeks

Income will be assessed as guaranteed income (hourly/ daily rate multiplied by guaranteed hours/ days).

We require evidence of current contract, 12 months same industry history and 1 months Bank statement showing receipt of contract income at level keyed.

Contracts - Zero Hours

Not accepted.

Fixed Allowance

Accepted at 100% if contracted and the same on every payslip.

If a variable amount we can consider at 60%. Refer to Bonus, Commission and Overtime criteria.

Foreign Currency

Not accepted.

Foster Income

Not accepted.

Income Proof

Income proof is not required on self funding non portfolio BTLs.

Investment Income

Accepted at 5% of fund value.

Maximum term of 20 years.

Minimum managed portfolio value of £250,000.

Funds containing individual properties will have the value of the property excluded.

Highly volatile funds such as currency exchange, single stock or venture capital trusts, will be excluded.

Stand alone cash savings are not classed as an investment.

Large Town Allowance

Accepted. 100% used for affordability.

Lending into Retirement

If the applicant retires before the end of the mortgage term in order to confirm the affordability in retirement, we will calculate the mortgage balance at the point of retirement and assess if the current level of retirement income is sufficient to meet the affordability assessment. We do not accept projections.

Earned income is accepted up to the age of 80 subject to a plausibility check that the applicant can continue in the current line of work until the declared retirement age. Retirement age will be capped for manual positions including driving and those with advertised retirement ages.

Maintenance Income Court Order

Accepted, if guaranteed for the life of mortgage. 100% used for affordability.

Maintenance Income No Court Order

Not accepted.

Minimum Income

None unless Top Slicing, where a minimum income of £50,000 on an application for a single applicant or £75,000 for joint applicants is required.

No minimum however must have an acceptable income other than rental.

Other committed income/assets/drawdown sources

These can be considered on an individual basis. Please contact us to discuss.

Parental Leave including Adoption Leave

Last payslip prior to leave and an employers letter that needs to confirm return to work date, salary, hours and no changes to terms and conditions.

Sufficient income/savings to cover any reduction in income during leave period required if not returning within 3 months.

Pension - Defined Benefit/Final Salary

Accepted. 100% of current level being received or if not yet drawn proof of eligibility to draw and we will use the amount left assuming the maximum tax free lump sum is taken.

Pension - SIPP

Accepted.

5% of the current fund value.

Must be over 55 years old.

Maximum term of 20 years.

The value of any individual properties held within a SIPP will be excluded from the fund value.

Pension State

Accepted. 100% of current level being received or if deferred the amount stated they can draw on last annual update.

Rental Allowance

Not accepted.

Rental Income

Not accepted to support BTL applications.

Second Job

Accepted – 100% if 6 month track record of working two jobs and sustainable.

Self-Employed

Sole Traders, Limited Company Shareholders and Partners Accepted.

Applicants classed as self employed if own more than 25% of a limited company.

2 years trading is required with a minimum of 2 years finalised figures.

The self employed income used for the application will be the maximum of the average last 2 or 3 years, which ever is the higher.

Self-Employed - Limited Company Directors

Profit before taxation plus directors remuneration can be considered for affordability if 100% of shareholders are on the mortgage and sustainability of the business can be confirmed.

Director’s remuneration plus average dividend for last 2 or 3 years is used for affordability where there is less than 100% ownership.

A Metro Bank Accountants Certificate or 1/2 years full company accounts submitted and registered with Companies House or 2/3 years tax calculations and overview with a covering letter from the verified accountant and the latest business Bank statement dated within the last 30 days are required.

Self-Employed - Partner in LLP

Where firm is a national large recognised LLP we can use Current Drawings and Partnership Profit Share, with no minimum time working within the LLP assessed on a case by case basis.

Letter from CFO/Financial Director confirming when became an equity partner, percentage ownership, current drawings and the partnership profit share they would have earned at that level of ownership for the last 2 years.

Income used will be current drawings and latest years profit share.

Self-Employed - Partnerships

Profit from Partnership. A minimum of 2 years trading required with 2 years fully submitted figures. We will use an average of the last 2 or 3 years figures (whichever is the higher) for affordability.

The latest months business bank statement dated within the last 30 days and Metro Banks Accountants Certificate or 1/2 years full partnership accounts or 2/3 years partnership tax returns required.

Self-Employed - Sole Traders

Profit from Self-Employment. A minimum of 2 years trading required with 2 years fully submitted figures. We will use an average of the last 2 or 3 years figures (whichever is the higher) for affordability.

The latest months business bank statement dated within the last 30 days and Metro Bank Accountants Certificate or 2/3 years Tax Calculations with accountants letter or 2/3 years SA100 (tax returns) with Inland Revenue mark required (where no accountant is used).

Self-Employed Accepted Accountant Qualifications

Main accountants’ qualifications accepted. These apply when using profit before tax, a Metro Bank Accountants Certificate or a covering letter is required from the accountant.

- Institute of Chartered Accountants England & Wales

- Institute of Chartered Accountants Scotland

- Chartered Institute of Management Accountants

- Association of Chartered Certified Accountants

- Chartered Institute of Public Finance and Accountancy

- Institute of Financial Accountants

- Association of Accounting Technicians

Stipend Income

Not accepted.

Supply Teachers

Accepted if over 3 years. Average of last 3 years income used for affordability.

Time in Employment

No minimum time with current employer at least the 1st full months payslip required.

6 months of continued employment.

Probation Periods accepted.

Trust Income

Accepted, must be guaranteed for term of mortgage and evidenced through Trust Deed, Trust Accounts and Investment Portfolio Reports showing underlying assets.

Valuations

A valuation will be required for each application. Please refer to our website for more information on Valuations including fee scale.

Credit history

General Account Conduct

Evidence of the following are unacceptable:

Reliance on Cash Advances from unsecured facilities.

Evidence of declined payments

CCJs

Satisfied:

£1,000 maximum total value across any number of CCJs satisfied within last 36 months.

Unlimited maximum total value across any number of CCJs satisfied over 36 months ago.

Unsatisfied:

£500 maximum total value across any number of CCJs.

No requirement to satisfy prior to application.

Defaults

Satisfied:

£1,000 maximum total value across any number of Defaults satisfied within last 36 months.

Unlimited maximum total value across any number of Defaults satisfied over 36 months ago.

Unsatisfied:

£500 maximum total value across any number of Defaults.

No requirement to satisfy prior to application.

Missed or Late Payments

Unsecured/Secured/Mortgages:

Up to a maximum status of 2 in the last 24 months, no cumulative limit across all accounts.

IVA

Satisfied:

Acceptable.

Unsatisfied:

Not acceptable.

Debt Management Plan Arrangement to Pay Debt Relief Order

Satisfied:

Acceptable.

Unsatisfied:

Not acceptable.

Bankruptcy

Discharged:

Acceptable only when bankruptcy order was over 36 months ago.

Protected Trust Deed (Scotland)

Satisfied:

Acceptable.

Unsatisfied:

Not acceptable.

Repossession

Acceptable only 72 months after repossession.

Payday Lending

Not acceptable.

Scoring

All applications are subject to credit score-carding referenced against Equifax credit agency.

Commitments/Debt

BTLs in Background

Non Portfolio BTL - Self financing, 1 months bank statements showing mortgage payments and rent received.

Portfolio BTL - overall portfolio needs to needs to fit on 140% at a stress rate of 5.5%. Top Slicing on the portfolio is available. Refer to Top Slicing policy.

Childcare and School Fees

If Top Slicing then taken as commitment.

Credit Cards

If Top Slicing then deducted as a commitment at 3% of outstanding balance if to remain.

Debt to Income Ratio

No limit applied.

Debt to Remain

If Top Slicing any debts remaining on completion are deducted as a commitment.

Any debts with less than 3 months to run can be ignored.

Pension Payments

Not taken as a commitment.

Property

Adapted Properties

Subject to surveyor's comments on future saleability. Heavily Adapted Properties will not be accepted.

Agricultural Ties

Accepted subject to surveyor's comments if in keeping with the property.

Must be let out under one tenancy agrement.

Must not have separate council tax or utilities.

Must not have its own access/driveway.

Assignment of Contract

Not accepted.

Balcony Access

Accepted subject to surveyor's comments.

Bed & Breakfast

Not accepted.

Cast in Situ Concrete

Accepted, such as Wimpey No-Fines & Laing Easiform subject to surveyor's comments.

Commercial Property - near or adjacent to

Accepted - subject to surveyor’s comments that the property and location does not adversely affect saleability.

Common Hold

Not accepted.

Contaminated Land

Not accepted.

Deck Access

Accepted subject to surveyor's comments.

Defective

Not accepted.

Properties defective under the 1984 Housing Act:
Airey
Boot
Boswell
Cornish Unit (1)
Cornish Unit (2)
Dorran (1)
Dorran (2)
Dyke
Gregory
Myton (1)
Myton (2)
Newland (1)
Newland (2)
Orlit
Parkinson
Reema Hollow Panel
Schindler & Hawksley SGS
Smith
Stent
Stonecrete
Tarran
Tarran (2)
Underdown
Unity & Butterley (1)
Unity & Butterley (2)
Waller
Wates
Wessex (1)
Wessex (2)
Winget
Woolaway

Energy Performance Certificate

Required confirming that an energy performance indicator of no less than E is in place (applicable to properties located in England & Wales only).

EWS1 Guidance

We rely upon the professional opinion of our panel surveyor to identify if a property identifies the presence of any aluminium composite material, or potentially combustible cladding/fire safety concerns. If this is the case then an EWS1 form will be required. The EWS1 form will need to be prepared by a suitably qualified independent professional advisor who is a member of one of the professional body approved by the Ministry of Housing, Communities and Local Government (MHCLG ) and provided by the building owner/agent.

We require a fully completed EWS1 form (of an A1, A2 or B1 rating) completed by an appropriate signatory (see the RICS website for a list of relevant professional bodies for completion of an EWS1 Form). If the form is not lodged on the FIA portal then we also require a covering letter from the signatory confirming the information contained in the EWS1 form.

Ex Local Authority

Houses accepted. Flats accepted subject to a maximum number of stories in the block of 6. Balcony/Deck access accepted subject to surveyor’s comments.

Flats - Maximum Number of Floors

No Maximum except Ex-Local Authority where the maximum is 6. If the building has more than 4 stories it must have a lift.

Accepted at standard LTVs.

Floor Area

Minimum Gross Internal Area of 35m2.

Flying Freehold

Maximum 20% of total floor area can be on a flying freehold.

Freehold Flats/Coach Houses

Not accepted or where the Leaseholder 'or an associated party' also controls the freehold. This includes where the ownership of the freehold is through a Limited Company.

Share of freehold accepted as long as in line with number of flats in the block. Such as if 25% share is owned and there are 4 flats in the block this is acceptable. If over 25% of the freehold is owned and there are 4 flats in the block this is not acceptable.

Ground Rents

New builds/conversions must have an initial minimum lease term of 125 years;

The maximum initial ground rent should initially be no more than 0.25% of market value; For Leases granted after 30 June 2022, ground rent must be "peppercorn", in line with the Leasehold Reform (Ground Rent) Act 2022;

The ground rent must not be reviewed less than every 10 years;

The ground rent must only be reviewed in line with the RPI or equivalent;

Event fees can only be based on the reasonable administration costs incurred.

Holiday Lets

Not accepted.

Holiday Letting (Airbnb)

Not accepted.

Inherited Properties

Property still in deceased name: treat as a purchase with inherited share used as deposit. Solicitor to confirm details of inheritance.

If property in applicants name: treat as a remortgage, capital raising for reason other than paying off other inherited parties is not accepted. Valuation used will be the lower of interitance valuation or our mortgage valuation.

Japanese Knotweed

Category D (Report) - Acceptable. Japanese Knotweed was not seen on this property, but it can be seen on a neighbouring property or land where it was within 3 meters of the boundary.

Category C (Manage) - Acceptable. Japanese Knotweed was identified within the boundaries of this property, but it is not causing visible, material damage to the structure and is not likely to prevent access to or restrict use of amenity space.

Category A and Category B (Action) - Unacceptable unless appropriate treatment plan provided by a company affiliated to either the Property Care Association Invasive Weed Group or the Invasive Non-Native Species Association (INNSA) in place. The treatment plan must be paid for in full prior to Metro Bank releasing funds and benefit from a 5 year warranty/insurance backed guarantee.

Kitchens (More than one)

Accepted, subject to surveyor's comments, if in annex or in keeping with the property and let on one tenancy, otherwise not accepted.

Leasehold

Minimum 50 years unexpired term on lease at end of mortgage term, subject to valuers comments.

Listed Buildings

Grade I, II* and II (A, B and C in Scotland) accepted - subject to full valuation and surveyor’s comments.

Live/Work Units

Not accepted.

Location of Lending

Mainland England, Wales and Scotland.

For Scotland we will not lend in the following postcodes:
Western Isles (HS)
Highlands (KW & ZE).

We currently do not accept transcripts.

Mineshafts

Not accepted where there is an uncapped mineshaft that affects the property.

Modern Methods of Construction

Accepted - subject to:

Planning and building regulation compliance.

An acceptable building standards warranty scheme being available.

Buildings insurance being obtainable under normal terms.

A minimum design life of 60 years as confirmed by a British accredited body (i.e. BRE, BOPAS).

Saleability confirmed by the surveyor.

Being situated in a suitable location as defined by the surveyor.

New Build definition

Property built/converted in last 12 months (based on completion certificate) and being occupied for the first time.

New Build - Flat

Maximum 75% LTV.

New Build - House

Maximum 75% LTV.

New Build Incentives

Builder Incentives accepted up to 5% of the purchase price. Builder incentive can include builders gifted deposit, white goods, carpets and curtains, cashback, legal fees and a contribution towards stamp duty.

New Build warranties/guarantees

Properties that have been built or converted in the last 10 years require suitable warranties/guarantees to be in place.

Acceptable Warranties:
NHBC; Zurich; LABC; New Home Warranty; Build Zone; Premier Guarantee; Building Life Plan; Checkmate Castle; Advantage Warranties; Global Home Warranties; The Q Policy; Build Assure; International Construction Warranties; Protek and Aedis Warranties.

Find out more here.

Non Habitable Condition

Not accepted - property has to be secure; structurally sound; insurable; have a working kitchen with running water, storage and ability to heat food; have a working bathroom with working lavatory, sink and ability to shower or bath and subject to surveyor's comments.

Non Rentable Condition

Not accepted.

Own Limited Company Purchase

Not accepted.

Property owned as Tenants in Common

Not accepted.

Property owned in Trust

Not accepted.

Remortgage within six months

Not accepted.

Restrictive Covenants/Title

Not accepted.

Right To Buy/Right to Acquire

Not accepted. Or during pre-emption or right of refusal period.

Self Build

Not accepted, unless completed and covered by a suitable structural new build warranty.

Land would need to have been owned for at least 6 months.

Single Skin

Not accepted.

Shared Equity/Ownership

Not accepted unless staircasing to 100% ownership.

Solar Panels

Accepted, providing no lease agreement exists.

Steel Framed

Accepted, subject to a structural report from a suitably qualified engineer (MICE, FICE, MIStructE, FIStructE) or a Chartered Building Surveyor (MRICS, FRICS) is required to confirm if it is of an acceptable standard for mortgage purposes and surveyor's comments on marketability and the suitability of the security for mortgage lending.

Studio Flats

Not accepted.

Thatched Roof

Accepted, subject to surveyor’s comments.

Timber - Framed

Accepted, with durable outer leaf, subject to surveyor's comments on marketability and the suitability of the security for mortgage lending.

Properties which are all timber are not acceptable.

Under Pinned

Properties underpinned in the last 10 years are not accepted unless covered by a 20 year guarantee.