Residential policy
Allowable purposes
- We allow additional borrowing as part of a remortgage application for most reasons other than business purposes
- If funds are being used for tax bills or school fees please check with us before applying
Maximum LTV
- The maximum LTV for additional borrowing is 90%
- This includes for the deposit on a new property, home improvements, paying off a Help to Buy Equity Loan in full, fully staircasing shared ownership and any other allowable purpose other than debt consolidation
- The maximum LTV where additional borrowing includes any debt consolidation is 80%
Home Improvements
- If additional borrowing for home improvements is more than £50,000 or 20% of the property’s value, we need builder/contractor estimates, plus planning consent if it’s needed
Debt consolidation
- Maximum LTV 80% for debt consolidation
- Maximum LTV 90% if the debt being consolidated was used for home improvements or repair to the property being mortgaged
- Debt consolidation is not usually allowed on interest only. The amount being consolidated must be on capital and interest. Debt consolidation is only allowed on interest only if the debt being consolidated was used for home improvements or repair to the property being mortgaged
- During the application please do not include the monthly payments for any debts being repaid as expenditure