Tied accommodation

Living in tied accommodation is defined as:

Accommodation that is provided as a part of a person's job and is conditioned by the worker's continued employment with his/her employer. There are three main types of arrangement where your employer provides housing:

  • The property is owned by your employer and you pay rent directly to the employer
  • The property is owned by a third party and you pay directly to your employer who passes the payment to the owner of the property
  • The property is owned by a third party and you pay the rent directly to the third party; the employer's role is only to facilitate the arrangements.

Applicants that want to buy a house, but their intention is to live in that property in the future while they continue to live in tied accommodation, are acceptable to apply using the policy criteria below. We need to establish how the property will be used, and if the intention is to let the property while the applicant remains in tied accommodation, or if the applicant is to occupy the property themselves (if the applicant will be living in the property upon completion then the criteria below does not apply).

If the applicant intends to let the property out while they remain in tied accommodation, then the following must be applied:

  • Maximum LTV is 75% (or 65% for a new build property)
  • Maximum LTV is 95% (or 80% for a new build property) where the applicants are living in military accommodation or are diplomatic staff)
  • Assured Shorthold Tenancy Agreement must be in place for any tenants
  • No more than 5 bedrooms
  • Product can be selected from our standard residential product range
  • Affordability of the loan will not be based on Buy-to-Let self-funding calculations.