LTV & Lending limits
Loan to Value
The table below provides the Loan to Value (LTV) Limits for mortgage applications on Mortgage Pro. This must be used in conjuction with the Lending limits table.
90-95% LTV only available for houses and bungalows (see below for separate LTV limits on new builds)
|
Residential - Loan Type |
Credit Score - A1-A2 |
Credit Score A3 |
Credit Score A4/B |
Credit Score - C |
|
House Purchase (up to £570,000, refer to lending limits for higher loan amounts) |
95%* |
90% |
85% |
65% |
|
House Purchase with a loan amount equal to or greater that £1 million |
75% |
75% |
75% |
65% |
|
Remortgages without Additional Borrowing - loan amount up to £1 million |
90% |
90% |
85% |
65% |
|
Remortgages with additional borrowing/capital raising up to £1 million |
85% |
85% |
80% |
65% |
|
Remortgages with a loan amount equal to or greater than £1million |
75% |
75% |
75% |
65% |
|
Unencumbered (Mortgage Free) with a loan amount <£1million |
85% |
85% |
80% |
65% |
|
Unencumbered (Mortgage Free) with a loan amount equal to or greater than £1million |
75% |
75% |
75% |
65% |
|
Transfer of Equity with Additional Borrowing |
85% |
85% |
80% |
65% |
|
Flats and maisonettes (Not including New Builds) – Where the LTV is >85% the maximum loan amount is £500,000 |
90% |
90% |
85% |
65% |
|
Interest Only |
75% |
75% |
75% |
65% |
|
Interest Only - Sale of the security property. The maximum LTV on interest only – See Interest Only Criteria – Sale of the security property for more information. |
60% |
60% |
60% |
60% |
|
Second Homes/Holiday Homes |
75% |
75% |
75% |
65% |
|
Shared Ownership - LTV restriction is based on the value of the share of the property the applicant is buying/will own (not the full market value of the whole property). |
90% |
90% |
85% |
65% |
|
Shared Equity - LTV restriction is based on the full market value of the property. The customer must provide a minimum personal deposit of 5% of the full purchase price. |
85% |
85% |
85% |
65% |
|
New Build - Houses and Bungalows (including Shared Ownership) |
90% |
90% |
85% |
65% |
|
New Build - Flats and Maisonettes (purpose built and converted) |
85% |
85% |
85% |
65% |
|
New Build - Second Homes/Holiday Homes |
75% |
75% |
75% |
65% |
|
Additional Borrowing |
80% |
80% |
80% |
65% |
|
Self Employed and Day Rate Contractors |
95%* |
90% |
85% |
65% |
|
Non UK and Irish Nationals (with permanent rights to reside in the UK) |
95%* |
90% |
85% |
65% |
|
Non UK and Irish Nationals (without permanent rights to reside in the UK) |
75% |
75% |
75% |
65% |
*95% LTV is a hard stop, so loan plus fees can’t exceed 95%.
|
Buy To Let - Loan Type
|
Credit Score – A1/A2 |
Credit Score – A3 |
Credit Score – A4
|
|
Buy to Let (including Business Buy to Let and Consumer Buy to Let) - LTV restrictions apply to all application types on a Buy to Let with the exception of New Build flats/maisonettes which will be restricted to 75% LTV. |
80%** |
75% |
65% |
|
New Build - Buy to Let Houses and Bungalows |
80%** |
75% |
65% |
|
New Build - Buy To Let Flats and Maisonettes (purpose built and converted) |
75% |
75% |
65% |
|
Interest Only |
80%** |
75% |
65% |
|
Additional Borrowing |
75% |
75% |
65% |
**80% LTV is a hard stop, so loan plus fees can’t exceed 80%.
- For affordability, when determining the minimum and maximum loan amount, the product fee will be added to the loan for every application.
- Fees cannot be added to the mortgage, if this will result in the LTV exceeding 95% for residential mortgages or 80% for Buy To Let mortgages.
- A Rate Switch with no additional borrowing is available up to 120% LTV.
- Loan to Value (LTV) limits do not apply where a TOMP is undertaken in isolation of any additional lending.
- For product LTVs please see the latest Product Guide.
- Where two or more parameters apply then the lower Loan to Value ratio (LTV) must be used. An exception to this is Buy to Let/New Build Buy to Let applications where only one parameter applies. See examples below.
Example 1
Applicant has a credit score which would allow them an LTV of 90% on a main loan. The applicant is however applying for Additional Borrowing, therefore the maximum LTV they can have is 85%
Example 2
Applicant has a credit score which would allow them an LTV of 85% on a main loan. However they are applying for a Buy To Let on a newly built property, therefore the maximum LTV is 75%.
Lending Limits
The lending limits stated below are subject to the availability of a suitable available product at any given time.
|
Loan Amount |
Max LTV |
|
<£570k |
95% |
|
>£570k to £750k |
90% |
|
>£750k to £1m |
85% |
|
>£1m to £2m |
75% |