This website is for use by authorised intermediaries only. Customers should visit www.skipton.co.uk
Applicant Age Limits
We usually require all applicants to be a minimum of 18 years of age, however for our Track Record mortgage we require all applicants to be 21.
For residential lending we can consider a maximum age of 75 (before the applicants 76th birthday) at the end of the mortgage term. However, where the mortgage term goes beyond the applicant’s 71st birthday or their elected retirement age, (whichever is reached first), then evidence of retirement income will be required to allow the impact of retirement on affordability to be assessed. For further information please refer to Lending Into Retirement.
If the applicant is retired and only using pension income then a maximum age of 80 (before their 81st birthday) can be considered. However, this only applies to applications that are on a Capital & Interest repayment basis.
If an applicant’s income is not being included in the affordability assessment then the maximum age limits detailed above will not apply to that applicant. However, all debts for that same applicant will still need to be included in the affordability assessment.
For Construction Industry Scheme (CIS) workers we will require the following:
To calculate income we will use an average of the last 13 weeks' payments x 48 weeks.
Please see below our requirements if your client operates within their chosen profession as a self-employed Contractor.
If your client’s earnings are £50k and above then they must meet the following criteria:
Your client must provide the following:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:
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 13 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 [PDF].
A full Credit Search is required for each applicant.
The Society’s policy on Credit Performance and Credit History is as follows:
The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:
We will only accept an unsatisfied default if this is less than £50 and evidence is provided to confirm this has been paid.
The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:
The application can be considered where:
The application will be declined if:
The application will be declined if:
Dependants are defined as any person (excluding partners) who is financially dependent on the mortgage applicant(s)
In addition for the purposes of clarity:
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.
Applications received from EEA citizens are acceptable subject to the following:
Applicants on a Visa are generally acceptable and income may be used in the affordability calculation subject to the following:
*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 less than 6 months the application is unlikely to be approved.
Please see below our requirements for assessing international ID documents.
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:
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.
*These items should no more than 3 months old
** For guidance on International ID Card requirements please see the ‘International Identification’ section below.
* 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.
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.
We accept 100% of:
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%.
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:
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.
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:
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.
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.
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.
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.
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 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.
Where an application is received from a UK national working overseas, the following criteria must be met:
For residential lending, if the selected mortgage term means that your client will either be on or past their 71st birthday 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.
Depending on the circumstances, the affordability assessment will be carried out as detailed below:
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.
If your client is within 10 years of retirement but the mortgage term will not take them to or past their 71st birthday or their elected retirement age, (whichever is reached first), then it is not considered as lending into retirement and our normal affordability assessment will apply.
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.
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.
For Locum medical professionals (including Bank Nurses) we will require the following:
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).
If your client receives rental income, we will accept 100% of the UK Land & Property figure minus finance costs as shown on the latest SA302 as additional income.
To evidence this we will require:
Definition of self employed: An individual who operates a business or profession as any of the following:
Evidence of income required is either:
To calculate income we can use an average of the latest 2 years' dividends and director remuneration or an average of the latest 2 years' share of net profit (after Corporation Tax) and director remuneration 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.
Evidence of income required is either:
If no accountant, or accountant is not certified or chartered, we may accept:
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.
Evidence of income required is either:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:
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 13 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.
For the full list of acceptable accountants qualifications see our Accountant Certificate [PDF].
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:
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:
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:
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:
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.
Your client must have made six months' consecutive mortgage payments before applying for Additional Borrowing. 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;
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:-
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:
Capital raising over 75% LTV is only acceptable for the following reasons:
* 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.
Deposits from a non-UK source may be acceptable. We will require 6 months bank statements detailing the original source of the funds and the transfer into the applicant’s UK bank account together with a completed International Deposit form [PDF].
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.
It is a condition of our Mortgage Offer that mortgage payments are made by Direct Debit, in line with the Direct Debit Guarantee.
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 Vendor must be a relative of the applicant as defined by the Family Law Act 1996, which includes:
(All of the above includes the "step" equivalent)
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.
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 the funds being provided towards the purchase of the property are not being provided directly by the applicants and you are aware these are being provided as a gift, then full details must be disclosed when the application is submitted.
We do not accept gifted deposits from anyone who is or will be a non-borrowing occupier of the property to be mortgaged.
Gifted deposits from a non-UK source may be acceptable. We will require 6 months bank statements detailing the original source of the funds and the transfer into the applicant’s UK bank account together with a completed International Deposit form [PDF].
For all gifted deposits the giftor providing the funds must be a relative of the applicant as defined by the Family Law Act 1996, this includes:
(All of the above includes the "step" equivalent)
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.
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;
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.
The below relates to existing SBS customers only carrying out a Help to Buy purchase porting existing residential products.
Remortgage applications are acceptable subject to the following conditions:
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:
Interest Only is an acceptable repayment method for Purchase and Remortgage applications provided a suitable repayment strategy can be evidenced. However it is not acceptable if the applicants are first time buyers. The following criteria applies to all residential Interest Only applications:
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.
For an Interest Only mortgage application to proceed the customer must provide evidence that a clearly understood and credible repayment strategy is in place. The evidence provided must confirm that the value of the assets at the time of underwriting is equal to or more than the proposed amount of mortgage borrowing that is being taken on interest only. The repayment vehicle must be held solely in the name(s) of the applicant(s) and can’t be held jointly with someone who is not party to the mortgage.
The following, (or a combination of these), are considered acceptable repayment strategies:
The following are considered unacceptable repayment strategies for new lending:
Maximum Loan to Income (LTI) limits are as follows:
| Income and LTV required | Maximum LTI |
|---|---|
| Income <=£50,000 | 4.49 |
| Income <=£80,000 or LTV >90% with income >£50,000 | 4.75 |
| Income >£80,000 and LTV <=90% | 5 |
| Income >£100,000 and LTV <=90% | 5.5 |
| Maximum Loan Amount | Maximum LTV |
|---|---|
| Up to £600,000 | 100%* |
| £600,001 - £800,000 | 85% |
| £800,001 - £1,000,000 | 80% |
| Above £1,000,000 | 75% |
* If LTV >95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage
| Application type | Maximum LTV |
|---|---|
| Help To Buy | 80% |
| Right to Buy | 90% |
| LIFT | 90% |
| Discounted/Tenant/Family Purchase | 95% |
| Let To Buy - Residential | 95% |
| JBSP/NOBs | 95% |
| Purchase | 95% |
| Shared Owner Ship (Track Record Mortgage) | 100% |
| Shared Ownership (Purchase not Track Record Mortgage, Remo and AB) | 95% |
| Track Record* | 100% |
* For further details please refer to Track Record Mortgage
| Remortgage | Maximum LTV |
|---|---|
| No Additional Funds | 90% |
| Home Improvements/Staircasing*/Transfer of equity | 90% |
| Any other capital raising | 75% |
* For a Remortgage where your client is capital raising to staircase to 100% of ownership of their property, the maximum LTV is 95%
| Additional Borrowing | Maximum LTV |
|---|---|
| Home Improvements/Staircasing/HTB buy out | 95% |
| Debt Consolidation | 85% |
| Any other capital raising | 75% |
| Property | Maximum LTV |
|---|---|
| New Build (Track Record Mortgage) | 100%* |
| New Build (Not Track Record Mortgage) | 95% |
| Non-New Build (Track Record Mortgage) | 100%* |
| Non-New Build (Not Track Record Mortgage) | 95% |
| 2nd Homes for Personal Use or dependant relative | 75% |
* 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 maximum Mortgage Term available depends on the repayment type required, as detailed below:
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:
Independent legal advice 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.
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.
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:
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 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.
Your client will be eligible for any products from our remortgage range as well as our existing customer only range, these products will be available on your product sourcing systems.
You may be able to accept the Product Transfer on behalf of your client as part of the e-mortgage process. This means we may not require the relevant forms to be submitted with a customer wet signature if all the following apply:
The above process will be subject to eligibility.
If the following circumstances apply we will still require you to submit the relevant forms with a customer wet signature:
If you are required to provide a customer wet signature to complete the product transfer, or if you would prefer to do this, then the following forms must be returned within seven days of the date of the offer to complete the transfer:
You can send the above to us using the scan and upload facility on eMortgages.
When the documents are returned it must be with a customer wet/original pen signature. Alternatively, you can contact us at customerdeliveryretentionrequest@skipton.co.uk to request an Adobe Sign version which will allow the customer to digitally sign the document.
We’ll send you reminders during the 7-day period that the offer is valid. If we don’t receive the required documentation in time and fully signed, we will be unable to process the Product Transfer (contract variation) and you will have to start the process again. In this circumstance the availability of the product you originally selected cannot be guaranteed.
For more information and some helpful FAQs please see our dedicated Product Transfers page.
| Acceptable | Not Acceptable |
|---|---|
| Home Purchase | Golden Hands |
| Family Discount Purchase | Holiday Homes |
| Shared Equity (Lift Scheme) | Self-Build/ BuildStore (inc. A/ Bs) |
| Right to Buy | Short-term lending |
| Tenant Purchase | Capital raising for business purposes |
| Shared Ownership | |
| Purchase and remortgage - owner/registered proprietor must have owned the property for a minimum 6 months ownership | Builder's incentives where is a part exchange property and the builder is paying above market value |
| Buy to Let (BTL) | Bridging finance |
| Transfer of Equity | Help To Buy (Mortgage Guarantee - Scheme 2) |
| Second homes for personal or main residential use for dependent relative (maximum 75% LTV & income has to cover total debt i.e. existing and proposed mortgage debt) | Guarantors |
| Help To Buy (Shared Equity Loan - Scheme 1) |
We will consider applications under the Rent A Room scheme subject to the following:
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:
Please note: Skipton Building Society does not allow Interest Only mortgages for First Time Buyers, their mortgage must be taken on a Capital & Interest repayment basis.
The following criteria applies to Right To Buy and Right To Acquire applications:
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.
If the security property is located in Scotland then the information outlined below should be considered alongside our standard lending criteria.
A valuation will already have been completed.
Where the 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.
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.
Skipton Building Society supports the following Scottish government housing scheme:
Skipton Building Society accept applications for the LIFT (OMSE) Scheme, the criteria is as follows:
Skipton Building Society do not accept applications submitted for the LIFT (NSSE) scheme.
Shared Ownership applications are acceptable for residential lending in England only 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:
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:
However, acceptance by the Society is subject to one (or more) of the following:
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.
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.
Amount due must be declared on application and used in affordability assessment.
All Shared Ownership properties must be leasehold with a minimum unexpired term in line with existing SBS policy on leasehold property.
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 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 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)
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.
AVM's are not acceptable.
Acceptable subject to prior consent from the Shared Ownership provider. Skipton will not accept a second charge registered against the property.
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)
In line with standard lending policy, maximum exposure in any development is 20%.
9+3 months for new build properties, otherwise 6 months.
Maximum exposure with any registered provider is 20%.
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.
Standard minimum submission documentation applies with the addition that for purchase SO cases, a Memorandum of Sale is required.
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.
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.
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.
* 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:
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
The property must be;
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:
We can also consider applications for flats in England with the following ratings from the EWS1 Form:
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.
For 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 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/purchase price (whichever is lower) at the time of the application 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 the M25 or exceed £1,000 p.a. inside the M25 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.
*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:
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).
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:
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.
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.
Applications on these properties are considered only if the property is:
* 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.
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.
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 built prior to 1965 are unacceptable with the exception of listed period buildings.
We do not lend on properties of this type of construction.
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.
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.
These are typically new build construction types and should generally be acceptable given that the NHBC guarantee is in place, subject to valuers’ comments.
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.
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.
For title restrictions, the Society will typically accept the following types:
However, acceptance by the Society is subject to one (or more) of the following:
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.
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.
Applicant Age Limits
We usually require all applicants to be a minimum of 18 years of age, however for our Track Record mortgage we require all applicants to be 21.
For residential lending we can consider a maximum age of 75 (before the applicants 76th birthday) at the end of the mortgage term. However, where the mortgage term goes beyond the applicant’s 71st birthday or their elected retirement age, (whichever is reached first), then evidence of retirement income will be required to allow the impact of retirement on affordability to be assessed. For further information please refer to Lending Into Retirement.
If the applicant is retired and only using pension income then a maximum age of 80 (before their 81st birthday) can be considered. However, this only applies to applications that are on a Capital & Interest repayment basis.
If an applicant’s income is not being included in the affordability assessment then the maximum age limits detailed above will not apply to that applicant. However, all debts for that same applicant will still need to be included in the affordability assessment.
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.
Your client must have made six months' consecutive mortgage payments before applying for Additional Borrowing. 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;
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:-
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.
The property must be;
For Residential applications £50,000 is the minimum accepted purchase price/property valuation (whichever is lower)
No criteria available for the selected letter
For Construction Industry Scheme (CIS) workers we will require the following:
To calculate income we will use an average of the last 13 weeks' payments x 48 weeks.
Please see below our requirements if your client operates within their chosen profession as a self-employed Contractor.
If your client’s earnings are £50k and above then they must meet the following criteria:
Your client must provide the following:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:
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 13 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 [PDF].
A full Credit Search is required for each applicant.
The Society’s policy on Credit Performance and Credit History is as follows:
The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:
We will only accept an unsatisfied default if this is less than £50 and evidence is provided to confirm this has been paid.
The following is acceptable (subject to overall ‘score’) and providing all other conditions are met:
The application can be considered where:
The application will be declined if:
The application will be declined if:
Capital raising up to 75% LTV is generally acceptable, however the following reasons for capital raising are unacceptable:
Capital raising over 75% LTV is only acceptable for the following reasons:
* 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.
Skipton Building Society can accept applications for flats with the following ratings from the EWS1 Form:
We can also consider applications for flats in England with the following ratings from the EWS1 Form:
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.
Where a deposit is being used towards the purchase of the property we may ask for proof of deposit if we deem that necessary.
Deposits from a non-UK source may be acceptable. We will require 6 months bank statements detailing the original source of the funds and the transfer into the applicant’s UK bank account together with a completed International Deposit form [PDF].
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.
It is a condition of our Mortgage Offer that mortgage payments are made by Direct Debit, in line with the Direct Debit Guarantee.
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.
No criteria available for the selected letter
Dependants are defined as any person (excluding partners) who is financially dependent on the mortgage applicant(s)
In addition for the purposes of clarity:
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.
Applications received from EEA citizens are acceptable subject to the following:
Applicants on a Visa are generally acceptable and income may be used in the affordability calculation subject to the following:
*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 less than 6 months the application is unlikely to be approved.
Please see below our requirements for assessing international ID documents.
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:
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.
The following criteria applies where the applicant is purchasing a property from a relative at a discounted purchase price:
The Vendor must be a relative of the applicant as defined by the Family Law Act 1996, which includes:
(All of the above includes the "step" equivalent)
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.
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.
For 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 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.
Guarantor applications are not acceptable.
If some or all the funds being provided towards the purchase of the property are not being provided directly by the applicants and you are aware these are being provided as a gift, then full details must be disclosed when the application is submitted.
We do not accept gifted deposits from anyone who is or will be a non-borrowing occupier of the property to be mortgaged.
Gifted deposits from a non-UK source may be acceptable. We will require 6 months bank statements detailing the original source of the funds and the transfer into the applicant’s UK bank account together with a completed International Deposit form [PDF].
For all gifted deposits the giftor providing the funds must be a relative of the applicant as defined by the Family Law Act 1996, this includes:
(All of the above includes the "step" equivalent)
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/purchase price (whichever is lower) at the time of the application 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 the M25 or exceed £1,000 p.a. inside the M25 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 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.
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;
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.
The below relates to existing SBS customers only carrying out a Help to Buy purchase porting existing residential products.
Remortgage applications are acceptable subject to the following conditions:
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.
*These items should no more than 3 months old
** For guidance on International ID Card requirements please see the ‘International Identification’ section below.
* 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.
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.
We accept 100% of:
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%.
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:
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.
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:
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.
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.
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.
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.
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 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.
Where an application is received from a UK national working overseas, the following criteria must be met:
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:
Interest Only is an acceptable repayment method for Purchase and Remortgage applications provided a suitable repayment strategy can be evidenced. However it is not acceptable if the applicants are first time buyers. The following criteria applies to all residential Interest Only applications:
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.
For an Interest Only mortgage application to proceed the customer must provide evidence that a clearly understood and credible repayment strategy is in place. The evidence provided must confirm that the value of the assets at the time of underwriting is equal to or more than the proposed amount of mortgage borrowing that is being taken on interest only. The repayment vehicle must be held solely in the name(s) of the applicant(s) and can’t be held jointly with someone who is not party to the mortgage.
The following, (or a combination of these), are considered acceptable repayment strategies:
The following are considered unacceptable repayment strategies for new lending:
No criteria available for the selected letter
No criteria available for the selected letter
For residential lending, if the selected mortgage term means that your client will either be on or past their 71st birthday 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.
Depending on the circumstances, the affordability assessment will be carried out as detailed below:
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.
If your client is within 10 years of retirement but the mortgage term will not take them to or past their 71st birthday or their elected retirement age, (whichever is reached first), then it is not considered as lending into retirement and our normal affordability assessment will apply.
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.
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.
For Locum medical professionals (including Bank Nurses) we will require the following:
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.
Maximum Loan to Income (LTI) limits are as follows:
| Income and LTV required | Maximum LTI |
|---|---|
| Income <=£50,000 | 4.49 |
| Income <=£80,000 or LTV >90% with income >£50,000 | 4.75 |
| Income >£80,000 and LTV <=90% | 5 |
| Income >£100,000 and LTV <=90% | 5.5 |
| Maximum Loan Amount | Maximum LTV |
|---|---|
| Up to £600,000 | 100%* |
| £600,001 - £800,000 | 85% |
| £800,001 - £1,000,000 | 80% |
| Above £1,000,000 | 75% |
* If LTV >95%, additional eligibility criteria applies, for further details please refer to Track Record Mortgage
| Application type | Maximum LTV |
|---|---|
| Help To Buy | 80% |
| Right to Buy | 90% |
| LIFT | 90% |
| Discounted/Tenant/Family Purchase | 95% |
| Let To Buy - Residential | 95% |
| JBSP/NOBs | 95% |
| Purchase | 95% |
| Shared Owner Ship (Track Record Mortgage) | 100% |
| Shared Ownership (Purchase not Track Record Mortgage, Remo and AB) | 95% |
| Track Record* | 100% |
* For further details please refer to Track Record Mortgage
| Remortgage | Maximum LTV |
|---|---|
| No Additional Funds | 90% |
| Home Improvements/Staircasing*/Transfer of equity | 90% |
| Any other capital raising | 75% |
* For a Remortgage where your client is capital raising to staircase to 100% of ownership of their property, the maximum LTV is 95%
| Additional Borrowing | Maximum LTV |
|---|---|
| Home Improvements/Staircasing/HTB buy out | 95% |
| Debt Consolidation | 85% |
| Any other capital raising | 75% |
| Property | Maximum LTV |
|---|---|
| New Build (Track Record Mortgage) | 100%* |
| New Build (Not Track Record Mortgage) | 95% |
| Non-New Build (Track Record Mortgage) | 100%* |
| Non-New Build (Not Track Record Mortgage) | 95% |
| 2nd Homes for Personal Use or dependant relative | 75% |
* 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 maximum Mortgage Term available depends on the repayment type required, as detailed below:
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.
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:
Independent legal advice 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.
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.
*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:
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).
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:
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.
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.
Applications on these properties are considered only if the property is:
* 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.
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.
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 built prior to 1965 are unacceptable with the exception of listed period buildings.
We do not lend on properties of this type of construction.
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.
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.
These are typically new build construction types and should generally be acceptable given that the NHBC guarantee is in place, subject to valuers’ comments.
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.
Properties under this scheme should generally be acceptable subject to valuation and a 10-year warranty being in place.
No criteria available for the selected letter
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).
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.
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:
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 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.
Your client will be eligible for any products from our remortgage range as well as our existing customer only range, these products will be available on your product sourcing systems.
You may be able to accept the Product Transfer on behalf of your client as part of the e-mortgage process. This means we may not require the relevant forms to be submitted with a customer wet signature if all the following apply:
The above process will be subject to eligibility.
If the following circumstances apply we will still require you to submit the relevant forms with a customer wet signature:
If you are required to provide a customer wet signature to complete the product transfer, or if you would prefer to do this, then the following forms must be returned within seven days of the date of the offer to complete the transfer:
You can send the above to us using the scan and upload facility on eMortgages.
When the documents are returned it must be with a customer wet/original pen signature. Alternatively, you can contact us at customerdeliveryretentionrequest@skipton.co.uk to request an Adobe Sign version which will allow the customer to digitally sign the document.
We’ll send you reminders during the 7-day period that the offer is valid. If we don’t receive the required documentation in time and fully signed, we will be unable to process the Product Transfer (contract variation) and you will have to start the process again. In this circumstance the availability of the product you originally selected cannot be guaranteed.
For more information and some helpful FAQs please see our dedicated Product Transfers page.
| Acceptable | Not Acceptable |
|---|---|
| Home Purchase | Golden Hands |
| Family Discount Purchase | Holiday Homes |
| Shared Equity (Lift Scheme) | Self-Build/ BuildStore (inc. A/ Bs) |
| Right to Buy | Short-term lending |
| Tenant Purchase | Capital raising for business purposes |
| Shared Ownership | |
| Purchase and remortgage - owner/registered proprietor must have owned the property for a minimum 6 months ownership | Builder's incentives where is a part exchange property and the builder is paying above market value |
| Buy to Let (BTL) | Bridging finance |
| Transfer of Equity | Help To Buy (Mortgage Guarantee - Scheme 2) |
| Second homes for personal or main residential use for dependent relative (maximum 75% LTV & income has to cover total debt i.e. existing and proposed mortgage debt) | Guarantors |
| Help To Buy (Shared Equity Loan - Scheme 1) |
No criteria available for the selected letter
We will consider applications under the Rent A Room scheme subject to the following:
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:
Please note: Skipton Building Society does not allow Interest Only mortgages for First Time Buyers, their mortgage must be taken on a Capital & Interest repayment basis.
The following criteria applies to Right To Buy and Right To Acquire applications:
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.
Definition of self employed: An individual who operates a business or profession as any of the following:
Evidence of income required is either:
To calculate income we can use an average of the latest 2 years' dividends and director remuneration or an average of the latest 2 years' share of net profit (after Corporation Tax) and director remuneration 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.
Evidence of income required is either:
If no accountant, or accountant is not certified or chartered, we may accept:
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.
Evidence of income required is either:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
Your client must meet the following criteria:
Your client must provide the following:
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.
For Locum medical professionals (including Bank Nurses), Supply Teachers, Construction Industry Scheme (CIS) Workers and Zero Hours Contracts we will require the following:
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 13 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.
For the full list of acceptable accountants qualifications see our Accountant Certificate [PDF].
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:
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:
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:
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 the security property is located in Scotland then the information outlined below should be considered alongside our standard lending criteria.
A valuation will already have been completed.
Where the 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.
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.
Skipton Building Society supports the following Scottish government housing scheme:
Skipton Building Society accept applications for the LIFT (OMSE) Scheme, the criteria is as follows:
Skipton Building Society do not accept applications submitted for the LIFT (NSSE) scheme.
Shared Ownership applications are acceptable for residential lending in England only 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:
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:
However, acceptance by the Society is subject to one (or more) of the following:
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.
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.
Amount due must be declared on application and used in affordability assessment.
All Shared Ownership properties must be leasehold with a minimum unexpired term in line with existing SBS policy on leasehold property.
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 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 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)
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.
AVM's are not acceptable.
Acceptable subject to prior consent from the Shared Ownership provider. Skipton will not accept a second charge registered against the property.
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)
In line with standard lending policy, maximum exposure in any development is 20%.
9+3 months for new build properties, otherwise 6 months.
Maximum exposure with any registered provider is 20%.
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.
Standard minimum submission documentation applies with the addition that for purchase SO cases, a Memorandum of Sale is required.
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.
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.
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 Society does not apply any restrictions in relation to any of the above.
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.
* 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:
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
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.
For title restrictions, the Society will typically accept the following types:
However, acceptance by the Society is subject to one (or more) of the following:
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.
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.
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View our current Valuation Fee Scale for full details.
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If your client has a Zero Hours Contract we will require the following:
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.