Remortgages

  • The property must have been registered in the applicant's name (or at least one of the applicants' names) for a minimum of 6 months unless the property has been inherited and the applicant is a beneficiary.
  • Applications where the applicant is not a beneficiary of the inherited property, and the beneficiary has owned the property for less than 6 months, are not acceptable.
  • The maximum LTV we will consider lending on remortgages with no additional borrowing is 90%.

A person cannot be removed from the mortgage if they are going to continue to reside in the property.

In some instances, in order to benefit from the lower stress rate of 4.60% on like for like remortgages, we will ask for evidence of the customers current mortgage balance. This will only be required when requested by TSB on a case by case basis.

Capital raising

Where the applicant is looking to raise additional capital, the loan will be restricted to a maximum of 85% (subject to credit score). Any additional borrowing being raised for debt consolidation must not be more than 20% of the property value.

We do not lend for the following purposes (at any LTV):

  • Timeshares
  • Injection into a business.

Where the property is mortgage free (unencumbered), these applications are also treated as remortgages.

In some cases TSB may ask for additional evidence of what the additional borrowing will be used for (quotes/written estimates for home improvements for example).

If your client is capital raising to purchase another property, all future costs must be included on the application and if they’re using the money raised to purchase a BTL property, we require evidence of  estimated rental income too.

Debt consolidation

Where an applicant wants to consolidate their secured and unsecured debts, the following policy will apply:

  • The amount being raised for debt consolidation must not be more than 20% of the property value.
  • The debt consolidation must be on a repayment basis only.
  • Any debt consolidation should be set up on a single sub account and must be separate to other borrowing.
  • Debt consolidation borrowing can be taken into retirement provided retirement income is fully evidenced.

TSB will not lend to customers who fall into one of the following categories:

  • Are in financial difficulty (i.e. cannot afford their current borrowing)
  • Have less than 12 months repayments left to pay on their current debts or intends to pay the debt in the next 12 months, at the time of the mortgage application. This is not applicable for Credit Cards, Overdrafts or other revolving debts.
  • Consolidation of student loans, child maintenance payments, long service advance of pay (property deposits) or pay day loans.