A-Z Lending Criteria Guide

Our standard minimum age at the start of the term is 18 years old. For our Track Record mortgage the minimum age is 21 at the time of application.

We can consider a maximum age at the end of the term of 75 years old for residential lending, however, where the mortgage term takes the borrower past either age 70 (before their 71st Birthday) or their elected retirement age (whichever is reached first), evidence of retirement income (for example pension, investment income etc.) will be required to enable consideration of the impact of retirement on affordability. For further information please refer to Lending into Retirement

For Construction Industry Scheme (CIS) workers we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement.
• 3 months' invoices or payslips.

To calculate income we will use an average of the last 12 weeks' payments x 48 weeks.

Please see below our requirements if your client operates within their chosen profession as a self-employed Contractor.

Contractor with Earnings => £50k

If your client’s earnings are £50k and above then they must meet the following criteria:

• Minimum of 2 years in their chosen profession
• Minimum of 6 months' contract history
• Minimum income (using daily rate) of £50,000
• Minimum of 1 month remaining on current contract.

Your client must provide the following:

• CV to confirm 2 years' experience
• Copy of current contract, (where less than 1 month remaining evidence of new contract must be provided)
• Copy of previous contract(s) if required (must be able to evidence a minimum of 6 months' contract history)
• Latest months' personal or business bank statement showing contractor income and general expenditure.

To calculate income we will use their daily contract rate x 5 x 48 (weeks) irrespective of whether operating as a Sole Trader or through a Limited company (where the applicant is the sole shareholder or shareholding is split with spouse/partner who is a party to the mortgage application).

Where there are gaps in the employment history the income may be calculated pro rata, (e.g. 8 week gap = daily rate x 5 x 40 weeks). However, one off gaps may be eligible for the standard calculation.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

Contractor With Earnings less than £50k

Your client must meet the following criteria:

• Minimum of 2 years in their chosen profession
• Minimum of 6 months' contract history
• Minimum of 1 month remaining on current contract.

Your client must provide the following:

• CV to confirm 2 years' experience
• Copy of current contract, (where less than 1 month remaining evidence of new contract must be provided)
• Copy of previous contract(s) if required (must be able to evidence a minimum of 6 months' contract history)
• Latest months' personal or business bank statement showing contractor income and general expenditure.
• Latest months’ payslips or invoices

To calculate income we will use the latest months’ payslips or invoices.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

Locum Medical Professionals, Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts

For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement.
• 3 months' invoices or payslips.

To calculate income we will then use an average of the last 3 months' payments. For CIS workers, to calculate income we will use an average of the last 12 weeks' payments x 48 weeks

There is no minimum income requirement.

Please note if the nature of the work is seasonal then evidence of the last 12 months' income may be requested to prove sustainability for affordability purposes.

The Society uses Experian for its credit searches. You can find more information on our Credit Scoring Guide.

A full Credit Search is required for each applicant.

The Society’s policy on Credit Performance and Credit History is as follows:

Credit Defaults

The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:

• 1 default recorded in the last 12 months where the total value of the default is less than £500, the default must be satisfied at the time of application
• A maximum of 3 defaults recorded in the last 24 months where the total value of the defaults is less than £1000, all defaults must be satisfied at the time of application
• There must be no missed payments on any account within the last 6 months

Unsatisfied Defaults

We will only accept an unsatisfied default if this is less than £50 and evidence is provided to confirm this has been paid.

County/High Court Judgements

The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:

• 1 CCJ less than £500 registered in last 3 years, now satisfied

Bankruptcy/IVA/Debt Relief Order

The application can be considered where:

• Any Bankruptcy/IVA/Debt Relief Order has been discharged at least 3 years ago
• Applicant is within limits on all revolving/flexible credit lines
• There are no arrears on any account within the last 6 months

Mortgage and Secured credit Arrears

• Applications with any mortgage or secured arrears in the last 6 months will be declined
• Applications with mortgage arrears of more than 2 months in last 2 years will be declined

Unsecured Loan missed payments/credit card/store cards

The application will be declined if:

• There are more than 2 missed payments on any account in last 6 months
• There are more than 2 missed payments on any loan within the last 2 years
• If any account is currently 1 month in arrears (where total balance of accounts is greater than £100)

Bank Account conduct

The application will be declined if:

• Overdraft limit has been exceeded within the latest month
• Credit Bureau report status 1 or worse is reported on any bank account within latest month
• Credit Bureau report status 2 or worse is reported on any bank account within latest 6 months

Credit limits

• If any credit line is reported as over the limit at the time of the search the application will be declined

Payday loans

• If any Payday loan has been used within the last 2 years the application will be declined

Debt Management programmes

• Applicants who are currently or have been previously subject to a Debt Management Plan must have no missed payments on any accounts in the last 6 months and meet all other adverse credit policy requirements.

Definition of Financial Dependants:

Dependants are defined as any person (excluding partners) who is financially dependent on the mortgage applicant(s)

Dependants consist of:

• Dependant Adult - aged 18 years and over and financially dependent on the applicant(s)
• Dependant Child - aged less than 18 years and financially dependent on the applicant(s)

In addition for the purposes of clarity:

• Partners are excluded as such information is captured elsewhere as part of the affordability assessment
• Where an applicant has advised maintenance is being paid for dependants not residing in the property, these persons should be excluded, to avoid duplication in the assessment

The following are not financial dependants - any occupants of a property who are:

• Self funding (e.g. retired parents with adequate pension income)
• In full time employment with an adequate level of income

If there is any element of financial dependency then the individual should be regarded as a dependant (e.g. if at university and either fully or partially reliant on parent(s). This includes fostered children).

A First-Time Buyer is defined as someone who has never owned an interest in a residential property in the United Kingdom or anywhere in the world, including BTL properties and any property that has been inherited, even if the applicant has never lived there.

European Economic Area Citizens

Applications received from EEA citizens are acceptable subject to the following:

• We must receive evidence that the applicant has settled/pre-settled status. To confirm this the applicant can provide a share code (which can be obtained from the Government website) that can be used by the Society to view their immigration status online. Only share codes that begin with the letter ‘S’ and that have been issued within the last 90 days are acceptable. Alternatively, if you have already carried out an immigration status check for your client please upload the immigration status check document to the case as evidence via e-mortgages.
• British and Irish citizens, or those with indefinite leave to remain and enter the UK, do not need to provide evidence of settled/pre-settled status.

Non-UK or Non-EEA Citizens

• The Applicant must evidence pre-settled/settled status under the EUSS (see above), permanent right of residency or indefinite leave to remain in the UK
• Standard income and affordability policy apply.

Applicants on a VISA

Applicants on a Visa are generally acceptable and income may be used in the affordability calculation subject to the following:

• Minimum 1 year of residency in the UK
• Maximum 90% LTV (The LTV restriction can be disregarded where one or more applicants are UK nationals or have Indefinite Leave to Remain)
• Minimum of 2 years remaining on the visa*.

*In cases where the remaining time on the visa is less than 2 years, we may be able to consider the application. However, if the remaining time on the Visa is 6 months or less, please contact either your BDM or the Broker Support Team to discuss the circumstances further.

Assessment Of International Identification documents

Please see below our requirements for assessing international ID documents.

Non-UK Passport

• Passport must be verified by the Skipton Building Society Financial Crime Team
• Passport can be only certified by Skipton Building Society employee

Non-UK Driving Licence (Issued by EU member state after 19th Jan 2013)

• Licence can be certified by Skipton Building Society employee or regulated intermediary

Non-UK Driving Licence (Issued by EU member state before 19th Jan 2013 or by non-EU member)

• Licence must be verified by Skipton Building Society Financial Crime Team
• Licence can be only certified by Skipton Building Society employee

• Identity Card must be verified by Skipton Building Society Financial Crime Team
• Identity Card can be only certified by Skipton Building Society employee

Biometric Residence Permit or Resident Permit Vignette dated pre 2014

• Permit can be certified by Skipton Building Society employee or regulated intermediary

If your client is a Foster Carer, then their income is acceptable for mortgage purposes. To proceed with the application, we will require the following:

• Evidence of 1 years foster carers experience, (e.g. letter from local authority, historical remittance)
• Copy of last 3 months remittance slips
• Copy of last 3 months bank statements.

To calculate income, we will use an average of the last 3 months payments.

All children in their care must be included as dependants on the application.

Guarantor applications are not acceptable.

When a new application is submitted on the eMortgages system we automatically attempt to electronically verify every applicant's ID. If we are unable to verify ID electronically for any applicant then additional documentation will be requested to progress the case.

Please check the ‘Outstanding Items’ list in eMortgages to determine what documents you need to forward to us for your specific case. If you are requested to provide personal ID for your client then acceptable documents are detailed below.

Acceptable Personal I.D

• Current signed passport
• Current UK full or provisional photo-card driving licence
• Current full (not provisional) UK (old style, paper based) driving licence
• Current full EU photo-card drivers licence
• HM Revenue & Customs Tax Notification
• Evidence of entitlement to state benefit, pension, tax credit etc.*
• I.D. cards**
• Signed firearms certificate
• Uk residence permit

*These items should no more than 3 months old

** For guidance on International ID Card requirements please see the ‘International Identification’ section below.

Acceptable Address I.D

• Utility Bill (mobile phone bill NOT acceptable)
• Council Tax Bill for current billing year
• Current UK full or provisional photo-card driving licence
• Current full UK (old style, paper based) driving licence
• Bank or building society statement showing address*
• Annual mortgage statement for current year
• Evidence of entitlement to state benefit, pension, tax credit etc.*
• Official letter from a government agency, e.g. CSA, DVLA, HMRC, JobCentre Plus, NHS*
• Care Home letter signed by an appropriate authority
• Council Tenancy Agreement
• Court appointment instruction (e.g. probate or Court registered Power of Attorney)

* Where possible, these items should be no more than 3 months old.

Please note, for an item submitted from the Personal ID list, the same item cannot also be used to confirm Address ID.

International Identification

Non-UK Passport

• Passport must be verified by the Skipton Building Society Financial Crime Team
• Passport can be only certified by Skipton Building Society employee

Non-UK Driving Licence (Issued by EU member state after 19th Jan 2013)

• Licence can be certified by Skipton Building Society employee or regulated intermediary

Non-UK Driving Licence (Issued by EU member state before 19th Jan 2013 or by non-EU member)

• Licence must be verified by Skipton Building Society Financial Crime Team
• Licence can be only certified by Skipton Building Society employee

• Identity Card must be verified by Skipton Building Society Financial Crime Team
• Identity Card can be only certified by Skipton Building Society employee

• Permit can be certified by Skipton Building Society employee or regulated intermediary

Where employed, applicants must be in continuous employment for at least 6 months.

The application will be assessed using our current Loan To Income (LTI) limits.

Any income being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

Income included in Affordability Assessment

We accept 100% of:

• Permanent basic income.
• Contractual Income (any other contractual guaranteed income e.g. Car/Shift Allowance, London Weighting etc.)
• Working Tax Credits, Child Tax Credits, Child Benefit as outlined in the Benefits section below.
• Pensions (we will require either the latest bank statement or latest P60 to evidence the income)
• War Widows Pension - we will require either the latest bank statement or latest P60 to evidence income.
• Armed Forces Compensation Scheme, Armed Forces Independent Payment, or Survivors Guaranteed Income Payment (we will require the latest months bank statement to evidence the income)
• Maintenance – Spousal and child maintenance are both acceptable if evidenced by either 3 months bank statements or a court order.
• Universal Credits (excluding Housing Benefit element). See Benefits section below for more information.
• Carers Allowance, Employment Support Allowance, Attendance Allowance, Adult Disability Payment (Scotland). See Benefits section below for more information.
• Disability Living Allowance/Personal Independence Payment. See Benefits section below for more information.
• Industrial Injury Payments (letter required confirming payment for life/until retirement and latest months bank statement to evidence income)
• Rental Income (as detailed in the Rental Income section below)

Variable Income

We can accept variable income, e.g. bonus, overtime, commission, as part of the affordability assessment.

If the evidence provided shows that the income is regular over a 12 month period then we can include 100% of the income in the assessment.

Where evidence shows the income is irregular, 50% will be included. However, if 2 years evidence can be provided to prove sustainability then we may be able to include this at 100%.

More Than One Source of Employment

If the applicant has more than one source of employment, e.g. a second job, we need to ensure that the total number of hours included in the affordability assessment are sustainable. We will therefore consider the following, subject to the applicant being employed by each employer for a minimum of 6 months:

• Applicant employed for a combined total of up to 40 hours a week – we will include 100% of the income in the affordability assessment.
• Applicant employed for a combined total of more than 40 hours per week – we will include 100% of the income for the first 40 hours and 50% of the remainder up to a maximum of 60 hours in total in the affordability assessment.

Restricted Stock Units

Documentation must be provided to prove that the Restricted Stock Units have vested both within the last 12 months and in the current financial year, and will continue to vest for a meaningful period of time (at least 12 months). Restricted Stock Units will be included as 50% in the affordability assessment, irrespective of whether they are regular or non-regular.

Rental income

For Residential Applications 100% of the UK Land and Property figure minus the finance costs from the latest years SA302 can be used as income.

We will require:

• Latest 2 years SA302s
• Latest months evidence of rental income (i.e. bank statement or invoice from letting agent)

Benefits

• Universal Credits (UC) (Excluding Housing benefit) - we will require 3 months UC statements and latest months bank statement evidencing the income.
• Working Tax Credits, Child Tax Credits, Disability Living Allowance, Personal Independence Payment, Carers Allowance, Employment Support Allowance, Attendance Allowance, Adult Disability Payment (Scotland), Child Disability Payment (Scotland) - we will require the latest DWP statement/documentation and latest months bank statement evidencing the income
• Child Benefit (CHB) – we will require the latest months bank statement evidencing the income. Child Benefit will only be accepted where the total gross earned income of each applicant is no more that £60,000, where the total gross earned income of any applicant is above £60,000 we will not accept child benefit for underwriting purposes.

Please note: if the benefit income is in joint names and the other party is not named on the mortgage application, then the income cannot be used for affordability purposes. This is also the case when the other party is a Non-Borrowing Occupier.

Where acceptable benefit income is greater than the total acceptable earned income the benefit income will be capped at the earned amount.

SIPP Pensions

For income purposes, up to 4% of the SIPP Pension pot value can be accepted as the customers annual pension income.

The customer does not need to be drawing down any income from the SIPP Pension pot at the time of the application, however the customer will need to be aged 55 or over, at the time of application, in order to use 4% as income.

If the customer is already currently taking an income from their SIPP Pension pot at a greater rate than 4%, this can be used as income providing the SIPP Pension pot value at the time of application can support that level of annual withdrawal over the term of the mortgage.

Evidence of the SIPP Pension pot value will be required when the application is submitted.

Parental leave

For applicants currently on parental leave where they will be returning to work on the same terms, the applicant must confirm directly to us that they wish to use the income from the last payslip prior to parental leave (this must be provided along with the latest payslip).

For applicants currently on parental leave where they will be returning to work on different terms, we will issue a letter directly to the employer asking them to confirm the agreed return to work date, together with the applicant’s expected salary details on return to work. Alternatively, the applicants return to work information (salary details and return date) can be confirmed by a letter from the employer.

Once we have the confirmed salary information, as per the above requirements, this can be used in the income calculation.

Nurses

For a nurse, the 6 months continuous employment period starts from when they become qualified and in employment, not from when they began working on the wards and earning a bursary.

Pay rises

For applicants with a pending pay rise we require a letter from their employer confirming the date of the pay rise together with details of the new salary. The pay rise must be provided by the same employer and be effective within 3 months of the date of the employers letter. The confirmed increased salary can then be used in the affordability assessment. In instances where concerns exist with regards to the validity or reasonability of the pay rise, the underwriters may determine that the case cannot proceed until the pay rise has come into effect.

Statutory sick pay

Statutory sick pay can be included within the overall acceptable income provided that this does not amount to more than 25% of the overall monthly income, as evidenced via the latest payslip.

UK nationals working overseas

Where an application is received from a UK national working overseas, the following criteria must be met:

• income must be evidenced via UK HMRC documentation for a minimum of 1 year (e.g. SA302, P60)
• a minimum 2 years history in the same line of work is required
• dependents of the applicant must reside in the property full time
• applicant must maintain residency rights in the UK
• any income being used within the affordability calculation and/or to make monthly mortgage payments must be received in £sterling by the applicant (IOM£/Gibraltar£ are also acceptable).

Lending Into Retirement:

For residential lending, where the mortgage term takes your client past either age 70 or their elected retirement age (whichever is reached first), evidence of retirement income (for example pension, investment income etc.) is required to enable us to consider the impact of retirement on affordability.

Any retirement income that is being used within the affordability assessment must be received in GBP by the applicant (IOM£ / Gibraltar£ are also acceptable). Where concerns exist with regards affordability, the application will be declined.

Our assessment will be carried out according to the following three-tier process.

(a) Retirement is less than ten years away

Your client will need to provide proof of their projected retirement income, as well as their current earned income. The lower of the two will then be used for the affordability assessment.

(b) Retirement is ten or more years away and the term is over five years into retirement

If the term takes your client over five years into retirement, an additional assessment will be carried out to ensure the loan is affordable in the retirement period. Evidence of project retirement income must be provided so an assessment can be made that the mortgage is affordable into retirement.

(c) Retirement is ten or more years away and the term ends within five years into retirement

We will request evidence that contributions to a pension fund are in place to support retirement. For example, evidence provided could be a pension deduction on a payslip, confirmation via the Accountant’s Certificate or confirmation from you as the broker.

Please Note: If your client is within 10 years of retirement but the mortgage term will not take them past age 70 or their elected retirement age, (whichever is reached first), then it is not considered as lending into retirement and our normal income assessment will apply.

For Locum medical professionals (including Bank Nurses) we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement.
• 3 months invoices or payslips.

To calculate income we will then use an average of the last 3 months payments.

There is no minimum income requirement.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

The mortgage term is limited to the sportspersons 35th birth year, unless they can provide evidence of their earning potential (e.g. via appropriate coaching badges etc.) after this time.

UK Sport Lottery Funds are generally not acceptable, although exceptions may be considered if the earning potential post playing career is comparable to the level of funding.

DLA/Universal Credit are generally acceptable (as they are likely to be long term funding).

Definition of self employed: An individual who operates a business or profession as any of the following:

• Limited company - with a shareholding of 20% or more
• Limited Company – where shareholding is less than 20% but dividends make up the majority of income
• Sole Trader or Partner in a Partnership
• Limited Liability Partnership
• Contractor or consultant.

Limited Companies

Evidence of income required is either:

• Fully completed Accountant Certificate and 3 months' business bank statements, or;
• Latest 2 years' full accounts and 3 months' business bank statements, or;
• Latest 1 year's full accounts and 2 years' SA302s and 3 months’ business bank statements.

To calculate income we can use an average of the latest 2 years' dividends and renumeration or an average of the latest 2 years' share of net profit and renumeration if this is preferred for your client. However, if the latest year's figures are lower then the lower figure will be used. If using share of net profit, in relation to Companies where there is an Alphabet Share arrangement, these will be considered on a case by case basis (subject to a full understanding of the Company share structure). Group/Holding Structures are excluded for the ‘Share’ of net profit calculation and will be assessed using the standard director remuneration and dividend calculation (an average of last two years or latest year if lower).

If net profit over the last 2 years has significantly reduced or increased, we will examine the reasons why and may request more information if required.

Dividends cannot exceed net profit regardless of whether dividends or share of net profit income is used.

Sole Trader or Partner in a Partnership

Evidence of income required is either:

• Fully completed Accountant Certificate and 3 months' business bank statements, or;
• Latest 2 years' full accounts and 3 months' business bank statements, or;
• Latest 1 year's full accounts and 2 years' SA302s and 3 months' business bank statements.

If no accountant, or accountant is not certified or chartered, we may accept:

• Latest 2 years' SA302s and 3 months’ business and/or personal bank statements.

To calculate income please use an average of the latest 2 years' net profit, unless the latest year's figure is lower in which case the lower figure should be used.

If net profit over the last 2 years has significantly reduced or increased, we will examine the reasons why and may request more information if required.

Limited Liability Partnership

Evidence of income required is either:

• Fully completed Accountant Certificate and 3 months' business bank statements, or;
• Latest 2 years’ full accounts and 3 months' business bank statements, or;
• Latest 1 year’s full accounts and 2 years’ SA302s and 3 months' business bank statements.

If the applicant is a partner in a large regional or national professional partnership, we may accept an employment reference from a senior partner or practice accountant, showing the applicant's share of profit.

If your client is unable to obtain 3 months' business bank statements (e.g. the other partners are unwilling to release these) we may accept 3 months' personal bank statements evidencing income from the LLP.

To calculate income please use an average of the latest 2 years' share of profit, unless the latest year's figure is lower in which case the lower figure should be used.

If net profit over the last 2 years has significantly reduced or increased, we will examine the reasons why and may request more information if required.

We will consider applications where the applicant has moved from sole trader to LLP, subject to a full income assessment and meeting the above criteria.

Contractor with Earnings => £50k

Your client must meet the following criteria:

• Minimum of 2 years in their chosen profession
• Minimum of 6 months' contract history
• Minimum income (using daily rate) of £50,000
• Minimum of 1 month remaining on current contract.

Your client must provide the following:

• CV to confirm 2 years' experience
• Copy of current contract, (where less than 1 month remaining evidence of new contract must be provided)
• Copy of previous contract(s) if required (must be able to evidence a minimum of 6 months' contract history)
• Latest month's personal or business bank statement showing contractor income and general expenditure.

To calculate income we will use their daily contract rate x 5 x 48 (weeks) irrespective of whether operating as a Sole Trader or through a Limited company (where the applicant is the sole shareholder or shareholding is split with spouse/partner who is a party to the mortgage application).

Where there are gaps in the employment history the income may be calculated pro rata, (e.g. 8 week gap = daily rate x 5 x 40 weeks). However, one off gaps may be eligible for the standard calculation.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

Contractor With Earnings less than £50k

Your client must meet the following criteria:

• Minimum of 2 years in their chosen profession
• Minimum of 6 months' contract history
• Minimum of 1 month remaining on current contract.

Your client must provide the following:

• CV to confirm 2 years' experience
• Copy of current contract, (where less than 1 month remaining evidence of new contract must be provided)
• Copy of previous contract(s) if required (must be able to evidence a minimum of 6 months' contract history)
• Latest month's personal or business bank statement showing contractor income and general expenditure.
• Latest month's payslips or invoices

To calculate income we will use the latest month's payslips or invoices.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

Locum Medical Professionals, Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts

For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement.
• 3 months' invoices or payslips.

To calculate income we will then use an average of the last 3 months' payments. For CIS workers, to calculate income we will use an average of the last 12 weeks' payments x 48 weeks.

There is no minimum income requirement.

Please note if the nature of the work is seasonal then evidence of the last 12 months' income may be requested to prove sustainability for affordability purposes.

Rental income

We will accept 100% of profit from UK Land & Property minus finance costs (as shown on latest SA302), as additional income. To evidence this we will require:

• Latest 2 years SA302s
• Latest month's evidence of rental income (i.e. bank statement or invoice from letting agent)

Points of note for all self employed applications:

• We will only accept finalised full (not draft) accounts. However, if only micro-entity and/or abbreviated accounts are available then a fully completed Accountants Certificate is required
• All accounts should be completed by a qualified Accountant
• Accountant Certificate to be completed for each business and each applicant if joint application
• Accounts/SA302’s must be dated within 18 months of the application
• We will only accept SA302s marked as “100% complete/submitted”. We will accept either HMRC originals or online printed copies
• Where SA302s are not printed directly from the HMRC online self-assessment portal, or the SA302 does not carry the customer’s name then a copy of the customer’s Tax Year Overview will be requested
• Where being used as part of the income calculation, if the net profit has significantly increased or reduced, we will examine the reasons why and may require more information if required
• Where the applicant(s) are linked to a company involved in a Creditors Voluntary Winding Up/Liquidation or a Company Voluntary Arrangement (CVA) these must have been dissolved/discharged for more than 3 years
• Any income being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant
• For all applications, all the information provided will be fully assessed by an underwriter and their decision will be final.

Acceptable Accountants Qualifications

For the full list of acceptable accountants qualifications see our Accountant Certificate.

All accounts must be signed either by the individual accountant or in the company name in order for them to be acceptable.

A Shared Lives Carer offers care in the community for an adult with specific caring needs usually in the carers own home. The arrangement is via the local authority and a service agreement is created between the service user, (the Adult that requires the care) and the Shared Lives Carer.

If your client is a Shared Lives Carer, then their income is acceptable for mortgage purposes. To proceed with the application, we will require the following:

• Evidence of 1 years’ experience as a shared lives carer, (e.g. letter from local authority, historical remittance)
• Copy of last 3 months remittance slips
• Copy of last 3 months bank statements
• Copy of the current service user agreement.

To calculate income, we will then use an average of the last 3 months payments.

If the service user is residing full time with the carer, then they must be included as an adult dependant on the application.

If your client is a Special Guardian, then their income is acceptable for mortgage purposes. To proceed with the application, we will require the following:

• Copy of last 3 months remittance slips
• Copy of last 3 months bank statements.

To calculate income we will use an average of the last 3 months payments.

All children in their care must be included as dependants on the application.

For Supply Teachers we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement.
• 3 months invoices or payslips.

To calculate income we will then use an average of the last 3 months payments.

There is no minimum income requirement.

We will consider up to 2 contracts running concurrently equating up to a maximum of 40 hours per week.

If your client has a Zero Hours Contract we will require the following:

• Minimum of 2 years in their chosen profession
• Copy of current contract (where available)
• Copy of latest month’s bank statement
• 3 months' invoices or payslips.

To calculate income we will then use an average of the last 3 months' payments.

There is no minimum income requirement.

Please note if the nature of the work is seasonal then evidence of the last 12 months' income may be requested to prove sustainability for affordability purposes.

If your client has an existing mortgage with us and they want to borrow more, for example to carry out home improvements, then they can apply for an additional borrowing loan.

Additional Borrowing for business purposes is not acceptable.

A minimum additional borrowing loan amount of £10,000 applies in most circumstances.

If the additional borrowing is for green home improvements (subject to product availability, 50%+ of the additional borrowing must be for green home improvements) or for Shared Ownership (where the loan is to be used for staircasing) or for debt consolidation (where the whole loan is to be used for debt consolidation) then a minimum loan amount of £5,000 is acceptable.

Affordability is calculated on the total new loan amount, not just the additional borrowing.

Where funds are being requested for Green home improvements, quotes and estimates will be required to cover the full amount of the improvements.

Additional Borrowing is allowed up to a maximum LTV of 95%, except for debt consolidation where the maximum LTV is 85% and capital raising where a maximum LTV of 75% applies. The maximum LTV includes the current balance & the proposed additional loan.

Additional Borrowing will be considered following a minimum period of 6 months from the date of completion of the original loan. Your client must not have had any mortgage or secured arrears in the last six months or have exceeded two missed months mortgage payments in the last two years.

Additional Borrowing for debt consolidation purposes is subject to a minimum loan of £5,000, a maximum loan of £50,000 and a total maximum LTV of 85%. Debt consolidation applications are not acceptable where the repayment method is Interest Only or if your client has already received an additional borrowing loan for debt consolidation purposes from the Society within the last 3 years. When assessing debt consolidation applications, 50% of the debt balance that is to be repaid with the Additional Borrowing will be factored in as an ongoing commitment as part of the Underwriting process.

You can submit an Additional Borrowing application for your client through eMortgages, it’s a single stage application process as a Decision In Principle (DIP) is not required.

The affordability model estimates household expenditure so the mortgage payment under stressed interest rates has to be less than or equal to the Effective Disposable Income (EDI). Any applications not meeting this criteria will be declined.

Any income (employed or self employed) being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

At DIP stage the affordability assessment is based on the commitments declared. All current outstanding loans & credit commitments must be declared, any not disclosed may potentially affect the affordability assessment at full mortgage application stage (FMA) and may result in the application being declined.

The following must also be confirmed;

• maintenance / child support
• tuition fees
• nursery/childcare costs
• rent (where remaining on completion)
• service charge
• ground rent
• shared ownership rent
• estate rentcharge.

The affordability model includes an element for pension contributions. However, if you believe that the customer is paying into a scheme where you would deem the payments to be higher than standard and they are unable to opt out, please highlight this on the DIP as per the first bullet point below.

In addition, the following must be disclosed at DIP stage:-

• Details of any other outgoings, regular or otherwise which are likely to affect the ability to meet the monthly mortgage payments
• Details of any potential changes to income now or in the foreseeable future that are likely to affect the ability to meet the monthly mortgage payment

To carry out an assessment of income and expenditure to establish the maximum that can be borrowed please use our online Affordability Calculator.

If LTV required is >95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage

Applications where any element of the security address is being let via Airbnb and/or similar schemes are not acceptable and will be declined.

Capital raising up to 75% LTV is generally acceptable, however the following reasons for capital raising are unacceptable:

• Purchase of time shares
• Currency speculation
• Purchase of stocks and shares
• Payment of tax bills including inheritance tax
• Business purposes
• Debt consolidation

Capital raising over 75% LTV is only acceptable for the following reasons:

• Home improvements*
• Transfer of Equity
• Staircasing
• Repaying HTB loan

* please note we reserve the right to request estimates and evidence of planning permission for major home improvements.

If the conveyancer the borrower chooses is on the Society’s panel, we will instruct them jointly.

If the conveyancer the borrower chooses is not on the Society’s panel, the Society will instruct a separate conveyancer to act for it, and two sets of costs may be incurred, for which the borrower will be liable.

The Society does not allow separate representation except where we have instructed our own solicitor to act for the Society. This is in line with the CML Handbook which states: Our instructions are personal to the firm to whom they are addressed and must be dealt with solely by that firm. The conveyancer must not subcontract or assign our instructions to another firm or body, nor may they accept instructions to act for us from another body. If this requirement is not complied with, it may result in the offer being withdrawn until proper instructions from the Society can be given to it’s own chosen firm or body.

Where a deposit is being used towards the purchase of the property we may ask for proof of deposit if we deem that necessary.

If some or all the deposit is being gifted, full details must be provided at application stage before we make the decision to lend, please refer to Gifted Deposit for further details.

Vendor deposit funding OR deposit funds raised through unsecured lending are not acceptable.

The Direct Debit payment will be requested by the Society from the customer's nominated bank account on the 1st of the month however the payment may not debit the customer's bank account for up to 3 working days afterwards. This is due to the time it takes for the Direct Debit to be processed after the Society has requested the payment and instances where the 1st of the month falls over a weekend and/or a bank holiday.

Whilst the direct debit payment may not debit the customer's account for approximately 3 working days after the payment date it is important that the customer has sufficient funds in their account from this point.

The following criteria applies where the applicant is purchasing a property from a relative at a discounted purchase price:

• The Society will lend up to 100% of the discounted purchase price
• No personal deposit is required from your client
• Loan To Value (LTV) is restricted to a maximum of 95% of the open market value
• Additional funds can be raised for home improvements at the time of purchase providing the total loan does not exceed 75% of the open market value
• No capital raising for any other purposes is acceptable.

The Vendor must be a relative of the applicant as defined by the Family Law Act 1996, which includes:

• Parent
• Grandparent
• Child
• Sibling
(All the above includes the 'step' equivalent)


• Spouse/Former spouse
• Civil partner/Former civil partner
• Aunt/Uncle
• Niece/Nephew
• First Cousin

A family member is as per the Family Law Act (1996).

The First Homes England scheme allows first time buyers, where eligible, to purchase a qualifying property with a discount of 30%, 40% or 50% on full market value. The discount is determined by the local authority based on local need – so higher discounts may be needed more in high property value areas.

To qualify for the scheme the household income must not exceed £80,000 (£90,000 in Greater London). The local authority may set a lower income cap if they can evidence that this is needed.

The local authority may also apply a local connection test based on residency, employment in the local area, family connections or special circumstances such as caring responsibilities. They may also prioritise key workers, (as defined by the local authority), for the scheme.

The First Time Buyers will also need to have a mortgage (or home purchase plan) in place for a minimum of 50% of the discounted purchase value.

Maximum property value (after the discount is applied) is £250,000 (£420,000 in London). The price cap only applies to the initial sale of a new build property and not to future sales in the second-hand market.

The discount is maintained on the property in perpetuity, so when the property is sold on it will be sold with the same discount and on the same terms as the original sale, allowing the next first homes customer to benefit from the discount.

For more information on the First Homes England Scheme, please visit OwnYourHome.gov.uk.

Key Points

• The First Homes Scheme is only available in England
• First time buyers only are eligible
• New build houses and flats are acceptable up to 95% LTV
• If New Build incentives apply this may affect the maximum LTV allowable, please refer to Incentives for further information
• The LTV is based on the loan amount and the purchase price (discounted amount)
• Products available are specifically for First Homes England applications and not available for standard new build applications
• Applications must be submitted as a Standard Purchase and not a Discounted Purchase
• All First Homes applications will receive a standard valuation, (they are excluded from AVM & Desktop)

Forces Help To Buy (FHTB) is a government scheme allowing armed services personnel to borrow up to 50% of their salary by way of an interest-free employer loan (up to a maximum of £25,000) which is then used to fund the deposit for house purchase and other associated costs, such as Solicitors fees. The interest free employer loan is then repaid over a ten year term via the applicant’s monthly salary.

Applications on the FHTB scheme are acceptable for residential lending and any product from our current residential range can be selected, subject to the LTV required.

A copy of the Personal Information Note (PIN) from the MOD will be required as part of the mortgage application for all purchase cases. The PIN is a letter issued by the MOD confirming the applicant meets qualifying criteria and sets out the terms of the loan requested.

The Forces Help To Buy scheme can be used in conjunction with other schemes, e.g. Right To Buy, Shared Ownership, etc. We will also consider FHTB remortgage applications.

If some or all of the funds being provided towards the purchase of the property are not being provided directly by the borrowers and it has been indicated this is by way of gift, full details must be provided at application stage prior to a decision to lend.

Skipton Building Society do not accept gifts from a person who is or will be a non borrowing occupier of the property to be mortgaged. A gifted deposit declaration is required, signed by the gifter.

Gifted deposits from a non UK source may be acceptable where 6 months bank statements or savings trail from a UK bank or deposit taker is evident for the source of these funds, up until the point of the gift being received by the applicant.

Skipton Building Society accepts gifts only from relatives (Family Law act definition, 1996) which include;

(a)The father, mother, stepfather, stepmother, son, daughter, stepson, stepdaughter, grandmother, grandfather, grandson or granddaughter of that person or of that person's spouse, former spouse, civil partner or former civil partner,or

(b) the brother, sister, uncle, aunt, niece, nephew, or first cousin (whether of full blood or of half blood or by marriage or civil partnership) of that person or of that person's spouse, former spouse, civil partner or former civil partner and includes, in relation to a person who is cohabiting or has cohabited with another person, any person who fall within paragraph (a) or (b) if the parties were married or civil partners of each other.

The Government Help To Buy Equity Loan Scheme was designed to help First-time buyers purchase New Build homes in England, Scotland and Wales. Please refer to the relevant government website for the current scheme rules and eligibility.

Scheme Requirements:

• Maximum 40 year term (unless prior approval obtained from the Agency)
• Maximum Purchase Price under the Help to Buy Scheme Rules:
  • England - Closed to new applications.
  • Scotland - Closed to new applications.
  • Wales - £300,000.
• The full purchase price must be no more than the full market value for the property. Our valuation report must value up to the full purchase price otherwise the application will be declined.
• Additional Borrowing is permitted to repay the full Help to Buy loan (partial staircasing is not acceptable), capital raising for other purposes may be permitted subject to approval from the Homes & Communities Agency.
• Evidence of the applicant’s deposit must be provided.

Offer Validity

Offer extensions may be permitted. Where the original offer period (6 months) has expired, an extension of a further 6 months may be granted provided that completion of the build will take place within this time.

Where an offer extension to 12 months is agreed, a supplementary credit check and affordability assessment will be carried out after the initial 6 month period (with no extra cost to the customer).

Offers will not be granted after 6 months where there is a materially adverse change in;

• the quality of the application,
• the customers financial circumstances (ability to repay) or

If after 12 months from the date of the original offer, the property build is not completed then the offer lapses. We will then consider a new application.

Porting Applications

The below relates to existing SBS customers only carrying out a Help to Buy purchase porting existing residential products.

• Where porting and not topping up with a HTB product, a standard valuation report is required and any fees would be payable by the applicant.
• Where porting and topping up with a HTB product, a standard valuation report is required and customer may be entitled to free standard valuation as dictates by the HTB product selected.

Remortgage Applications

Remortgage applications are acceptable subject to the following conditions:

• Maximum LTV of 75%.
• Capital raising is permitted to repay the full Help to Buy loan (partial staircasing is not acceptable), capital raising for other purposes may be permitted subject to approval from the Homes & Communities Agency.

Income Booster (also referred to as Joint Borrower Sole Proprietor or JBSP) is a type of mortgage where not all parties to the mortgage are legal owners of the property. For example, if there are two borrowers in the scenario both will be mortgage borrowers and liable for the full mortgage, but only one will be named on the title deeds of the property. This may provide an alternative affordable option for your clients as it allows another party, such as parents, guardians, friends or family, to join the mortgage so that their income can be used when assessing the case.

Income Booster is available for new purchases, customers changing from a standard mortgage to a Income Booster mortgage or for the remortgage of an existing Income Booster mortgage. The following criteria applies:

• Permitted for residential lending only. Not available for Second Home purchase, Discounted or Family Purchases or Buy To Let and not acceptable in conjunction with any other lending schemes e.g. Shared Ownership
• The maximum LTV is 95% (subject to our standard lending criteria)
• We will accept up to four applicants and up to all four incomes. Where there are more than two applicants, supporting borrowers can reside in different households
• There are no restrictions around the relationship between the main borrower (proprietor) and the supporting borrower (non-proprietor)
• The main borrower(s) must reside in the property
• Normal age and lending into retirement criteria applies, however on a referral basis we may allow the supporting borrower to go to a maximum age of 80 if the following applies:
  • the current age of the supporting borrower is less than 70
  • the main occupying borrower can support the majority of the mortgage in their own right
  • the application is on a Capital Repayment basis
• Applications would generally be expected on a Capital Repayment basis. However, where the requested repayment method is Interest Only, sale of the non-proprietor's residence will not be accepted as a repayment vehicle
• Independent Legal Advice is required for all non-proprietors
• Any product can be selected from our core residential range, including products with cashback included and products with free standard legal fees for remortgages (subject to product availability)
• Remortgage capital raising is acceptable (subject to our standard lending policy), but any additional monies raised must be for the proprietor’s sole and full benefit (an exception may be made if the application is for a transfer of equity to buy out the non-proprietor's share if currently on the property title).

Interest Only is acceptable for mortgages and remortgages (except first time buyers)

Maximum LTV

• Maximum LTV for Interest Only is 70%
• Maximum LTV for Part Interest Only and Part Capital & Interest is 80% (Interest Only Part restricted to 70% LTV)
• Applications over 80% LTV must be taken on a Capital & Interest basis.

Minimum Income

• At least 1 applicant must have a minimum income of £40,000. For joint applications, if this is not possible, a combined minimum income of £60,000 is acceptable.
• Income must be earned income (this can include rental income but not benefit or maintenance income)
• The above applies where the repayment method contains any element of Interest Only.

Max Terms

• The maximum term for Interest Only or Part and Part mortgages is 25 years.

First Time Buyers are not eligible for an Interest Only mortgage with Skipton Building Society. First Time Buyers must take their mortgage on a Capital & Interest repayment basis.

Acceptable Repayment Strategies

The Society will only enter into a regulated mortgage contract, where all or part of that contract is on interest-only basis if the customer can provide evidence that a clearly understood and credible repayment strategy is in place and as far as it is reasonably able to assess at the time of underwriting, the repayment strategy has the potential to repay the capital borrowed and that this will be in £Sterling (IOM£ / Gibraltar£ also acceptable).

Acceptable Repayment Strategies are:

The latest annual statement must be provided as evidence that the sum due to be paid on maturity based on the “medium” projection is equal to or in excess of the proposed amount of mortgage borrowing. The policy is not deposited with or assigned to the Society.

Evidence must confirm that the value of the assets at the time of underwriting is equal to or in excess of the proposed amount of mortgage borrowing.

Acceptable assets are:

• Equity in a UK property. Where the main residence is being used as the repayment vehicle the maximum LTV for the interest only element is 50% and a minimum of £300,000 of equity must be remaining in the property after the total advance. Where the overall loan is above 50% LTV, additional repayment vehicles can be used in conjunction with Sale of Mortgaged Property. If including equity from any BTLs, holiday lets, and second homes the property must be owned in the applicants name only.
• Pension – 25% of the projected pension pot can be used as a repayment vehicle, subject to minimum projected pot value of £600k or a minimum current pot of £300k. Pension cannot be used as an acceptable repayment vehicle if the pension is being used as income on the application. When using figures from pension projections, the mid pension pot projection should be used.
• UK shares and bonds held as investments (including Sharesave schemes and Premium Bonds)
• Cash savings in a UK deposit account. Any savings used must be personal and not business related.

Unacceptable Repayment Strategies

The following repayment strategies are unacceptable for new lending:

• Lump Sum repayment.
• Expected inheritance.
• Bonus income.
• Regular overpayments.
• Equity in a commercial property.
• BTLs owned in a company name.
• Business related savings.
• Second home where a dependent relative resides – If on an Interest Only basis the non-proprietor’s main residence cannot be the repayment vehicle.
• Income Booster (Joint Borrower Sole Proprietor) Cases - If on an Interest Only basis the non-proprietor’s residence cannot be the repayment vehicle.
• Where the asset is held in or is coming from a foreign country/source (assets from IOM£ and Gibraltar£ are acceptable)

Maximum Loan to Income (LTI) limits are as follows:

* If LTV is >95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage

* For further details please refer to Track Record Mortgage

*For a Remortgage where your client is capital raising to staircase to 100% ownership of their property the maximum LTV is 95%

* If LTV is >95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage

Once you have submitted your application on the eMortgages system please check the ‘Outstanding Items’ list in eMortgages to determine what documents you need to forward to us.

We automatically attempt to electronically verify every applicant’s ID and income when the application is submitted, this means that our document requirements may vary for each applicant.

If your case is submitted correctly packaged it will mean that it can be fully underwritten within our service levels, providing a quick and efficient service for you and your client.

Photographs of supporting documents are acceptable, with the exception of Personal and Address ID documents. For further guidance please refer to our Acceptable Documents [PDF].

Mortgage offers for non-new build properties are valid for 6 months from the date of the first mortgage offer. After 6 months the Society may consider extending the offer but this will be subject to an up to date credit search and up to date income and affordability checks. A new application will be required if it is 12 months from the original offer date.

For new build properties the offer validity period is 9 months with the option to extend for a further 3 months subject to an up to date credit search and affordability assessment being carried out. A re-valuation may also be required. The completion of the build must take place within 12 months from the date of the original offer, if the property build is not complete within this time then the offer will lapse and a new application will be required.

Offer extensions will not be granted where there is a materially adverse change in any of the following:

• the quality of the application
• the customers financial circumstances (ability to repay)
• the valuation of the property.

The maximum Mortgage Term available depends on the repayment type required, as detailed below:

• 40 years for Capital & Interest mortgages
• 25 years for Interest Only or Part & Part mortgages

Permitted for residential lending only. Applications are not permitted on Buy To Let, Discounted or Family Purchase, or in conjunction with any other type of specialist lending, (e.g. Shared Ownership, Right To Buy, Help To Buy)

Normal LTV limits apply.

Maximum four applicants.

Independent Legal Advice is required for all non-occupying borrowers.

For applications where the term takes any applicant into retirement - standard lending into retirement (LIR) policy applies.

Applications would generally be expected on a capital repayment basis. However, where the requested repayment method is interest only the non-occupying borrower's residence will not be accepted as a repayment vehicle.

Forms of Consent are required in all cases where the loan is in a sole name & there is a non borrowing occupier (NBO). Except where the occupier is:

• Under the age of 17.
• The child / stepchild of the borrower & aged 17 - 25 & in full time education at the time of application.

Independent legal advise is strongly recommended where there is an NBO residing in the property. Where independent legal advice is recommended and subsequently taken then that condition must be adhered to in all cases with a solicitor/conveyancer acting as a solicitor. This may incur a fee which is payable by the applicant.

A Non-borrowing Occupier (NBO) cannot provide or contribute towards the deposit to purchase the property. If any of the deposit is being provided by the Non-Borrowing Occupier then they must be added to the mortgage account as a mortgage borrower for the application to proceed.

Payment Holidays

If the customers has made overpayments, we offer the option of payment holidays, giving them a break from mortgage payments for up to three consecutive months.

Customers can take payment holidays once they have had their mortgage with Skipton for six months, but they will need to give the Society at least 14 days prior written notice. As long as the customer has had no arrears the holiday proposed would not take the LTV of their mortgage above 95%, and there are sufficient surplus payments to cover the holiday, the customer may take up to three consecutive months' holiday.

Customers cannot take more than a total of six months in any 12 month period. Whilst payments will not be made during the holiday, interest will continue to be added to the account causing the balance to increase.

Overpayments

By making overpayments the customer could be able to pay off their mortgage earlier than originally planned saving in interest. All of our mortgage deals allow customers to repay a fixed percentage of their original mortgage balance per year without charge.

Most of our mortgage deals include Early Repayment Charges (ERCs) if overpayments are made that are more than the set overpayment allowance on the product. Full details of this showing in the Mortgage Illustration and Mortgage Offer.

If your client is moving home and currently has a Skipton mortgage then they may be able to transfer their mortgage over to their new property, we refer to this as ‘porting’.

When porting their mortgage, your client can keep the amount they're currently borrowing the same or, if they're eligible, they could borrow more.

They could also reduce the size of their mortgage (please be aware that early repayment charges may apply).

To be eligible for porting, the purchase of the new property should happen within six months of the sale of the old one. Early repayment charges (ERCs) may be payable if the sale and purchase of the two properties are not simultaneous. Your client will have six months to complete the onward purchase to receive a refund.

Mortgage porting is subject to our standard underwriting process, including criteria and affordability at the time of porting, the property itself and the purpose of the loan.

For more information and some helpful FAQs please see our dedicated Porting page.

Product Transfer requests can be submitted up to three months in advance of the product maturity date.

The product transfer request can be submitted on eMortgages:

• If the mortgage product is due to mature within three months, or the mortgage account is currently on a variable rate with no early repayment charge (ERC)
• If, in addition to the product transfer, your client also wants to request Additional Borrowing, change the length of their term (shorter or longer) on repayment mortgages only or change the repayment type of their loan from Interest Only to a fully Capital and Interest mortgage
• If it is an Interest Only case that will remain Interest Only with no other contract variations
• Even if you didn't originally introduce the business to Skipton.

Once the product transfer request has been submitted on eMortgages the following forms must be returned within seven days of the date of the offer to complete the transfer:

• Mortgage Illustration and Contract Variation Offer (client to sign).

You can send these to us using the scan and upload facility on eMortgages.

The documents returned must have been signed by your client with a wet pen signature. Alternatively, you can email us at customerdeliveryretentionrequest@skipton.co.uk to request an Adobe Sign version which will allow your client to digitally sign the document.

If we haven’t received the signed forms after 5 days we'll send you an email reminder. Please do try to return the required documents as soon as possible, if we don't receive the documentation in time and fully signed we are unable to process your request and the new product selected will not be guaranteed.

Please note, you won’t be able to request the Product Transfer on eMortgages if any of the following apply to your client’s mortgage account:

• The account is in arrears
• A 'Consent to Let' exists on the account
• It’s an Interest Only mortgage account and your client wishes to make a contract variation as well as completing a product transfer.

The above won't automatically prevent your client from switching their mortgage product, it just means they would need to go through the product transfer process directly with us as the required functionality isn’t currently available on our eMortgages system.

For more information and some helpful FAQs please see our dedicated Product Transfers page.

We will consider applications under the Rent A Room scheme subject to the following:

• There is no formal tenancy agreement in place
• The applicant is living at the property
• No more than 1 room is being rented out in the property on this basis at any one time
• Income earned from this scheme is not included in the affordability assessment.

Please Note: The Society will not consider applications where any element of the security address is being let via Airbnb and/or similar schemes

We accept the following Repayment Methods:

• Capital and interest
• Part and Part, (restricted to 80% LTV, Interest Only element maximum 70% LTV, maximum 25 year term)
• Interest Only (restricted to 70% LTV, maximum 25 year term), for further information please refer to Interest Only

The following criteria applies to Right To Buy and Right To Acquire applications:

• The Society will lend up to 100% of the discounted purchase price
• No personal deposit is required from your client
• Loan To Value (LTV) is restricted to a maximum of 90% of the open market value
• A Right To Buy notice must be obtained reflecting the name(s) on the mortgage application exactly
• Additional funds can be raised for home improvements at the time of purchase providing the total loan does not exceed 75% of the open market value
• No capital raising for any other purposes is acceptable
• Ex-local authority flats are acceptable with a minimum value of £100,000 (£300,000 in Greater London), subject to valuer's comments.

Where applicants have the right to acquire a property, applications will be considered and the above policy will apply.  Where sufficient evidence/documentation does not exist, applications will be declined.

Scottish cases should proceed on the same basis as normal considering the following:

Purchase Applications

A valuation will already have been completed.

New Build

Where are property is a new build, a transcript report is not acceptable. The Society will instruct a full standard report for which a fee may be payable to the Society by the applicants, this is dependant on the product selected. (Please refer to the new build section for the Societies definition of a New Build)

Remortgage and TSM Applications

Normal Valuation Rules apply.

Retentions

Where a retention has been held and the Society has a transcript valuation on file, in order to consider releasing the retention, the applicant may pay for a standard valuation.

Funds will then be released subject to lending criteria being met and satisfactory valuation being received.

Shared Ownership applications are acceptable for residential lending in England & Wales with the borrower share of the property acceptable between a minimum of 25% and a maximum of 75% based on the initial purchase price.

The Society will consider lending up to 100% LTV of the borrower's share of the property. Product restrictions apply and if the LTV required is >95% additional eligibility criteria applies, for further details please refer to Track Record Mortgage.

Where financial incentives are provided, the incentive cannot exceed 5%.

Where financial incentives are provided - this may affect the maximum LTV allowable.

Minimum loan £25,000. Maximum loan subject to usual loan and LTV maximum restrictions.

Maximum term 40 years. Subject to meeting standard lending policy requirements.

Shared Ownership applications are only permitted on a capital and interest repayment basis only.

Maximum storey height/number of units in a development:

• For properties built before 2008, 5 storeys/48 units.
• For properties built in 2008 or after, over 5 storeys/48 units is acceptable (subject to lift access and valuers comments)

Title restrictions on disposal (i.e. restrictive covenants/Section 106 agreements)

These are restrictions within the title to the property and must not be confused with standard restrictions within the acceptable shared ownership model lease.

For title restrictions, the Society will typically accept the following types:

• Salary/occupational restrictions.
• Locality restrictions.
• A combination of the above.

However, acceptance by the Society is subject to one (or more) of the following:

• Any restriction must only apply to the first transaction (i.e. the initial purchase transaction) and the restriction must not apply to any subsequent future transaction(s)
• There must be a cascade mechanism in place that commences after a maximum of 3 months from the date of possession, with no restriction of any kind after 6 months from the date of possession.
• There must be a Mortgage Exclusion Clause in place in which applies immediately upon possession and will continue to be in force for successors in title to the mortgagee ensuring that all successors also take free from the relevant restrictions.

Any restrictions should be disclosed within the application to ensure the Society's valuer is fully informed in their assessment of the property.

Any clauses/restrictions other than those listed above will result in the application being declined.

We will not allow cases where the pre-emption rights survive 100% staircasing. This will be included within our instructions to conveyancers but not within our mortgage offer.

Landlord restrictions

The leaseholder must be regulated by the HCA and be either registered Housing Association or a registered provider appearing on the HCA register.

Please check the list of registered providers by visiting GOV.UK's registered providers of social housing page.

In all instances the lease must adhere to the model produced by the HCA and incorporate a Mortgage Protection Clause.

Rent and service charge

Amount due must be declared on application and used in affordability assessment.

Lease

All Shared Ownership properties must be leasehold with a minimum unexpired term in line with existing SBS policy on leasehold property.

Staircasing

Borrowers must be permitted to staircase to 100% ownership under the terms of the lease. Staircasing must be conducted in minimum shares of 5% with prior approval from the scheme provider. Where 100% staircasing has taken place, standard remortgage products are used.

Additional Borrowing

Additional Borrowing on Shared Ownership cases will be considered in certain circumstances up to a maximum of 95% LTV.

It can be considered for the purposes of staircasing where permission has been granted by the scheme provider. In all cases borrowers are required to maintain at least a 10% deposit against the market value of the property.

Staircasing involves the legal transfer of equitable title from the Shared Ownership Provider to the customer which has legal formalities in order to be valid. Where additional borrowing monies are required on shared ownership for staircasing, a conveyancer (on Skipton's panel) will be required to ensure the purchase of the additional equitable title is legally sound. Any costs incurred are payable by the customer. Additional Borrowing Shared Ownership offers will be valid for 6 months.

A minimum Additional Borrowing loan of £5,000 is permitted for Shared Ownership mortgages where the loan is to be used for staircasing.

We may also consider additional borrowing for essential repairs to the property and where the lease term is being extended subject to permission being granted by the registered provider and confirmed in writing.

Remortgages

Remortgages are acceptable up to 95% LTV for any shared ownership property which meets our existing criteria. Remortgages must be on a like for like basis unless additional borrowing is sought for staircasing.

Capital Raising may also be allowed for lease extension and for essential repairs (including energy efficiency improvements)

For TSM we may allow capital raising to buy out the interest of another party subject to approval from the registered provider in writing.

Skipton Home Conveyancing Service can be used for Shared Ownership. There may be a charge in relation to a Deed of Variation (if applicable)

Conveyancing

It is the duty of the conveyancer to ensure the lease meets the minimum requirements as set out in our Instruction to Conveyancers [PDF]. In all instances the lease must adhere to the minimum standards of the model lease produced by the HCA and incorporate a Mortgagee Protection Clause.

Valuations

AVM's are not acceptable.

Gifted deposit

Acceptable subject to prior consent from the Shared Ownership provider. Skipton will not accept a second charge registered against the property.

Contract variations

Rate switches are acceptable on specific shared ownership products. Any other contract variations will follow the standard process, as long as prior approval has been obtained from the provider (if required)

Maximum exposure per development

In line with standard lending policy, maximum exposure in any development is 20%.

Offer validity

9+3 months for new build properties, otherwise 6 months.

Registered provider exposure

Maximum exposure with any registered provider is 20%.

Letting

Not acceptable for Buy to Let. However, serving members of the British Armed Forces serving overseas or at a base further than 50 miles or 90 minutes travelling time automatically have the right to sub-let their shared ownership properties. We will require evidence of SO providers awareness/consent before we can process the Armed Forces Consent to Let.

Minimum submission requirements

Standard minimum submission documentation applies (see section A.0) with the addition that for purchase SO cases, a Memorandum of Sale is required.

Remortgage Conveyancing Service

If you're moving your mortgage to Skipton but not moving home, then you won't usually have to pay anything for the legal costs involved if you elect to use our Remortgage Conveyancing Service, depending on your chosen product. In other words, it's free to you, as we pay the standard legal costs within the service.

As well as this, we pride ourselves on having a well-established relationship with our recommended conveyancers who provide the legal work for our Conveyancing Service and this helps to make the process as hassle free as possible for you.

The remortgage work is undertaken by the conveyancers on a ‘reduced title check' basis which Skipton considers is sufficient to assess its security. If for any reason you wish the conveyancers to carry out a full title check on your behalf they can do so but any additional costs involved are payable by you.

For your peace of mind, experienced and well respected firms are currently used in the Skipton Remortgage Conveyancing Service. They are regulated by the Council for Licensed Conveyancers.

Fees

Please be aware that some legal work relating to matters not usually involved in a standard remortgage are not included in this offer e.g. transfers of equity or deeds of postponement. The solicitors will offer fixed prices for certain "elevated services". Please see our Elevated Service fees leaflets for further information.

• Elevated Service Fees - England & Wales
• Elevated Service Fees - Scotland

In addition to this, if the loan is above £1,000,000 additional costs may be payable. Some payments to third parties may also still have to be paid and occasionally we may offer certain products with other benefits where we do not pay the legal costs.

If you're unsure as to whether additional costs may be involved in your mortgage, please speak to your mortgage adviser in the first instance.

If at any time your remortgage falls through, then you won't have to pay any standard legal fees, but fees which relate to matters not usually involved in a remortgage may still have to be paid.

The following criteria applies where your client is buying their current home from their landlord, either at full market value or at a discounted purchase price.

• Where applicable, we will lend up to 100% of the discounted purchase price
• No personal deposit is required from your client if the LTV is less than or equal to 95%*

* If the LTV required is more than 95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage.

The Society does not accept Trust arrangements in favour of any person or body who is not a party to the mortgage.

TSM policy relates to existing SBS borrowers only, where a request is made to either change the names on the existing mortgage (i.e. remove & / or add a name) and in some cases where also additional funds are requested to buy out a partner etc.

Acceptable Valuation Types:

• LTV up to & including 60%: The Society will assess the case against the original file valuation (index linked).
• LTV 61%-75%: An AVM is acceptable subject to standard AVM acceptable criteria
• LTV over 75%: Up To Date report required. Where only an AVM is on file or if the valuation report on file is over 5 years old then a full standard report will be required.

Free Valuation/Free Legal Type Rules

A TSM application may not qualify for free valuation or free legal fees. The application will be processed as a remortgage purely as a result of internal system restrictions. Additional funds can be raised to pay ex-partner and this can be raised on the same product or any product from the current range. Normal lending criteria applies; cases outside of policy should be referred to the MSC for consideration by a Lending Manager. Justification and evidence of affordability must be obtained prior to referral.

If the application does not qualify for free legal fees the customer can choose to use Skipton Home Conveyancing Scheme (SHCS) and pay the fees. We will debit the fees for the standard legal work to the mortgage account on completion and the elevated service part will be invoiced by CDPL to the customer directly. The advantage to the customer is that the fee for the standard legal work is very competitive, although it is important to note that the fees may differ dependent on area, i.e. England, Scotland etc

Acceptable

• New build houses for residential (off plan is acceptable providing build is completed within 12 months of the 1st mortgage offer)
• New build remortgage (if proof from Land Registry is obtained confirming property already owned by applicant(s) for 6 months)
• New build flat/flat conversions for residential
• Flats that have a minimum floor space of 30 square metres. There is no restriction on floors in the block or number of units in the block but, if the number of floors exceeds 5, then lift access is required
• Leasehold properties with a minimum 85 years unexpired term on completion of the mortgage
• Non-standard flats (e.g. with commercial (including retail) outlets in the development/block, Ex local authority flat, deck access, mezzanine floor (galleried) and studio flats) minimum property value required is £100k outside the M25/£300K within the M25
• Grade II listed buildings (B & C in Scotland)
• Properties with Japanese Knotweed (subject to valuer’s comments)
• Repossessions

Not Acceptable

• Grade I/Grade II* Listed properties (Grade A in Scotland)
• Any security affected by any invasive plant species
• Flats if number of floors exceeds 5 and there's no lift access
• Any property with a floor space less than 30 square metres
• Leasehold properties with less than 85 years unexpired term on completion of the mortgage
• Commonhold properties
• Properties where spray foam insulation has been applied to the underside of the roof covering

The property must be;

• Of a traditional construction, as defined by the Society’s panel valuer for the property type
• In a satisfactory condition
• Of a suitable type
• Be recommended as suitable security by a valuer on the Society's valuer panel
• Split titles are not acceptable
• Within overall exposure limit in any development (will typically be limited to 20%)

For Residential applications £50,000 is the minimum accepted purchase price/property valuation (whichever is lower)

Skipton Building Society can accept applications for flats with the following ratings from the EWS1 Form:

• A1 - There is no cladding that contains significant quantities of combustible material.
• A2 - A risk assessment of cladding has taken place and no remedial works are required.
• B1 - The fire risk is low enough that remedial works are not required.

We can also consider applications for flats in England with the following ratings from the EWS1 Form:

• A3 - Cladding is unlikely to support combustion but remedial works may still be needed.
• B2 - The fire risk is high enough to require remedial work.

A3 & B2 ratings will require further checks and will be acceptable subject to identifying the security block is to be remediated through funding schemes specifically set up by the government or developer to ensure the cost of remediation does not fall to leaseholders, or for lower rise buildings, where the remediation costs are likely to be covered through the service charge and normal sinking funds.

Flats are acceptable for residential purposes as per our policy outlined below:

Please note: Our policy on flats does not restrict based on storey height or number of units in a block but, where storey height exceeds 5 floors, access to a lift is required.

• New build flats/flat conversions and non-new build flats are acceptable
• Minimum property value for standard flats is £50,000
• Non-Standard flats (above commercial, deck access, mezzanine flats, studio, ex-local authority) are acceptable for Residential purposes, the minimum value is £100k outside the M25/£300K within the M25
• Overall exposure in any development typically limited to 20%
• Re-enforced in situ concrete with brick render is considered a standard construction for flats and is acceptable to the Society
• Minimum floor space of 30 square metres for all flats is required.

Flats within commercial/retail outlets

A standard valuation will be carried out and the decision to lend will be made on whether the valuer recommends we proceed. The recommendation will be subject to the valuer believing the property is suitable security for a mortgage and will be easily re-saleable. The valuer's decision is final: no challenges will be accepted, and no refunds of valuations fees will be issued if the decision is a decline.

Freehold flats

Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside flats where there are reciprocating lease/freehold arrangements are also acceptable.

Ground rent and other service charges must always remain at a reasonable level during the lease term. The ground rent must not exceed more than 0.1% of the property value at the start of the lease and there must be a minimum period of 10 years between any ground rent increases.

It is acceptable if the ground rent escalation is linked to the Retail Price Index (RPI) or other similar index. Compounded PRI increases are not acceptable.

Clauses providing for ground rent increases that ‘double’ (or more) the preceding level are not acceptable.

A ground rent clause which allows the ground rent charge to exceed £250 p.a. outside of London or exceed £1,000 p.a. in London is not acceptable unless a deed of lease variation can be obtained. If this isn’t possible then we can consider accepting a suitable indemnity insurance policy to protect our interests.

The maximum acceptable acreage is 3 acres. Consideration of up to 10 acres may be made by exception, subject to surveyors’ inspection and recommendation based on residential use only and ‘modest’ outbuildings (e.g. some stables/loose boxes/tack room/feed store/small hay store/small workshop/normal garaging). Any property with large commercial style agricultural buildings and/or acreage over 10 acres will not be accepted.

Any property being sold for occupation for the first time which has been newly built or converted within the last 3 calendar years will be defined as a New Build property.

• New Build homes are acceptable for residential purposes providing the build is completed within 12 months of the Societies 1st mortgage offer
• Subject to meeting the above requirement properties bought off plan are acceptable (this only applies to new residential applications, properties bought off plan are not acceptable for BTL)
• We accept residential applications up to 95% LTV for New Build properties
• Our Track Record Mortgage can be used to borrow up to 100% LTV for a New Build home (additional eligibility criteria applies).

*If Incentives apply the maximum LTV may be reduced, please refer to New Build Incentives section for more details.

For properties built within the last 10 years, a suitable certificate/guarantee must be available. The following new home warranty schemes are acceptable:

• ABC+
• Aedis Warranties Limited (HomeProof)
• Ark Insurance Group Limited
• BLP (Building Life Plans)
• Build Assure/FMB Insurance
• Build Zone
• CADIS
• Castle 10 Checkmate
• Global Home Warranties Limited
• International Construction Warranties (ICW)
• LABC
• NHBC
• One Guarantee
• Premier Guarantee
• Protek
• The Q Policy for Residential Properties, Bespoke Properties & Completed Properties
• Thomas Miller Specialist Construction.

If the property does not have the benefit of a new home warranty scheme, we require a Professional Consultant Certificate. Where a Professional Consultant's Certificate is accepted in place of a new home warranty scheme, these are only acceptable on small scale developments i.e. those consisting of 15 residential units or less (either houses or residential flats).

Definition of Incentives:

• Builders may offer sales incentives to potential buyers to encourage them to purchase their property.
• An incentive is anything the builder gives or provides to the buyer in cash or goods. Typical examples are deposits (i.e. builders deposits) paid before completion and cash paid after completion - often to pay stamp duty or legal fees.
• As all incentives must be paid for by the builder, they can be regarded as a less transparent alternative to reducing the sale price.

Assessment of Incentives

Financial incentives of up to 5% of the purchase price or valuation (whichever is the lower) are allowed on New Build properties only and are permitted on any New Build. Any application where the financial incentive value exceeds 5% will be declined, regardless of the LTV.

The financial incentive % may affect the maximum LTV allowable, as explained below:

• Where the financial incentive amount is <= 2% then there is no impact on the maximum LTV allowed.
• Where the financial incentive amount is >2% (up to a maximum of 5%) then the maximum LTV will be reduced by 5%. For example, if the maximum LTV normally allowed was 95%, but the property had an incentive >2% then the maximum LTV available for that case would be reduced to 90%.

The Customer must be able to provide a minimum of a 5% deposit (a builder deposit can be accepted in addition to this but not in place of the customer’s own deposit). The only exception to the above is Track Record. As the minimum LTV must be over 95% to be eligible for Track Record Mortgage, financial incentives of more than 2% are not accepted for this product.

Evidence

• All incentives must be declared at DIP stage. The UK Finance Disclosure of Incentives form (formally CML incentive form) is required by the valuer, which provides details and value of any incentives.
• Valuers take incentives into account when preparing the valuation report. Please note that all lending is always subject to a satisfactory valuation for mortgage purposes.
• We will work off the lower of the valuation or the purchase price.
• Evidence of the deposit may be requested at application stage.

The Society does not accept applications where:

• The builders/vendors are paying above market value for a part exchange property.
• The application has any form of Vendor (Private Seller) deposit funding.

When considering applications for properties built using a Non-standard construction type, in addition to the information given below, all lending decisions will be subject to valuer’s comments and the valuer confirming that the property is suitable for mortgage purposes.

Prefabricated reinforced concrete (PRC)

Applications on these properties are considered only if the property is:

• previously covered by an existing guarantee from PRC Homes Ltd, a former subsidiary of NHBC; or
• has been repaired in accordance with a scheme originally licensed by PRC Homes Ltd; or
• already/previously covered by a similar guarantee provided by a local authority or other public body where the property is owned by that authority; or
• the property has been repaired to a minimum grade 5 standard under the NTHAS (non-traditional homes appraisal scheme)
• the Applicant intends to ensure such a guarantee will be in force prior to release of any part of the advance; or
• any other dwellings within the same block have been similarly improved under an approved scheme.
• all paperwork is contemporaneous with the works undertaken (retrospective warranties etc. are not acceptable).

* With specific regard to Airey Houses, PRC Homes Ltd issued a licence on 12th March 1987 to Leeds City Council for a repair system to these types of dwellings. Houses repaired under this licence are, in principle, acceptable to the Society, provided the works were carried out after 12th March 1987.

Prefabricated reinforced concrete properties that have not been repaired are not acceptable to the Society.

No-fines Construction

Wimpey no-fines construction and Laing Easiform construction (built post 1945) are generally acceptable and in each case suitability for lending purposes will be dependent on the valuer’s comments.

Steel Frame Construction

We do not generally accept steel frame dwellings unless a structural engineer's report (of the steel frame) is obtained and all recommended work within that report is carried out and the mortgage valuer confirms that the property is suitable for mortgage purposes. (A structural engineer's report is essential as a valuer is not able to ascertain the condition of the steel framework merely by carrying out a mortgage valuation).

The above criteria does not apply to newly built blocks of flats.

Timber Frame dwellings

Timber frame dwellings built prior to 1965 are unacceptable with the exception of listed period buildings.

Large Panel Systems (LPS)

We do not lend on properties of this type of construction.

Space4 System

Space4 is a designated Modern Method of Construction (MMC).

This is generally acceptable and in each case suitability for lending purposes will be dependent on the valuer’s comments.

Single Skin Construction

The Society will only allow a small portion of the property to be constructed of single skin which must only be one storey in height and subject to satisfactory comments from the valuer.

Modern Modular Steel Frame with Brick Externally

These are typically new build construction types and should generally be acceptable given that the NHBC guarantee is in place, subject to valuers’ comments.

Mundic Block

Properties in areas where "mundic" is a known problem (properties build from concrete blocks laid onto mass concrete foundations) must be subject to a screening test in line with RICS guidance. A result of Class A1, A2 or A3 is required for a property to be considered acceptable.

BOPAS Scheme

Properties under this scheme should generally be acceptable subject to valuation and a 10-year warranty being in place.

The Society does not apply any restrictions in relation to any of the above.

All flats and maisonettes must be leasehold (feuhold in Scotland) with a minimum unexpired term of 85 on completion of the mortgage.

Leasehold flats where the borrower will also own a share in a management company that owns the freehold are acceptable.

Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside flats where there are reciprocating lease / freehold arrangements are also acceptable.

Commonhold properties are not acceptable to lend on, by the Society.

View our current Valuation Fee Scale for full details.

• We aim to instruct a valuation within 24 hours of the application being submitted. The type of valuation instructed will be the most suitable for the application, taking into consideration property type, LTV, etc and will be solely for the purposes of assessing the security property for mortgage purposes. This may be an AVM, Desktop or standard mortgage valuation.
• Connells act as the Society’s panel managers and deal with maintenance of the panel together with the allocation of all instructions. A Panel Valuer that covers the security postcode area is always used
• Some products may qualify for a free valuation. This is up to a maximum purchase price/estimated valuation of £1,500,000. Please refer to the specific product details for further information, there may be some additional travel fees if the property is located off the mainland or in a remote location.
• A valuation instructed for Additional Borrowing purposes is free to the Customer, irrespective of the type of report obtained by the Society
• The minimum acceptable property value is £50,000
• Valuations are valid for 12 months from the date appearing on the valuation report or transcript report
• The Society does not accept re-type valuations except on Scottish cases, where a transcript is requested. If more than 3 months old, we will require a refresh before the transcript will be requested
• The Society will instruct a valuation for mortgage purposes only
• The Customer can request a RICS Home Survey Level 2 or a RICS Home Survey Level 3 but they would need to arrange this directly with Connells. Connells will provide a discount for cases proceeding with the Society, the customer should contact Connells direct on telephone number 01525 218619 to benefit from this service. Your client needs to confirm their application is with Skipton Building Society and quote their mortgage application number, Skipton customers can expect to receive a minimum discount of 28%. Requesting a RICS home survey Level 2 or Level 3 will not delay the mortgage offer.

Restrictive Covenants - Section 106 Agreements

For title restrictions, the Society will typically accept the following types:

• salary/occupational restrictions
• locality restrictions
• a combination of the above.

However, acceptance by the Society is subject to one (or more) of the following:

• any restriction must only apply to the first transaction (i.e. the initial purchase transaction)
• there must be a cascade mechanism is in place that commences after a maximum of 3 months from the date of possession, with no restriction of any kind after 6 months from the date of possession
• there must be a Mortgage Exclusion Cause in place which applies immediately upon possession and will continue to be in force for successors in title to the mortgage ensuring that al successors also take free from the relevant restrictions.

Any restrictions should be disclosed within the application to ensure the Society's valuer is fully informed in their assessment of the property.

Any clauses/restrictions other than those listed above will result in the application being declined.

Overage Clause

An overage agreement is where the vendor has registered a clause against the title of the property that stipulates, they will receive a % of any increase in value once it has been sold on. This is usually triggered if planning permission is granted on the property, but the terms will be specific for each case.

The Society does not lend on any properties where there is an overage clause attached to the title and such applications will be declined.