Lending Criteria

Overview
Standard mortgages
Minimum loan: £25,001
Maximum loan: £1.5 million
Loan types: For property purchase and remortgage only
Payment types: Repayment, interest only or a combination of both. For interest only or a combination please see our interest only criteria below.
Loan tiers:

Loan tiers for purchases: 95% up to £500,000, 85% up to £750,000, 80% up to £850,000, 75% up to £1,000,000, 70% up to £1,500,000. Fees may be added. Conditions apply.

Applicants borrowing on a 95% LTV basis cannot own any other property at the time of completion.

Loan tiers for remortgages: 90% up to £500,000, 85% up to £750,000, 80% up to £850,000, 75% up to £1,000,000, 70% up to £1,500,000. Fees may be added. Conditions apply.

Property:

The following property types are not acceptable:

  • Newly built houses where the Loan to Value (LTV) is greater than 85%
  • Newly built flats or conversions (built or converted within the last 12 months) where the Loan to Value (LTV) is greater than 80%
  • Properties less than 10 years old that are not covered by an approved new home warranty scheme or Professional Consultant’s Certificate
  • Properties outside Mainland UK. Please contact us if your property is located on any Scottish islands except Skye, Bute, Lewis & Harris, Mainland Orkney, Mainland Shetland, Arran, Mull, Islay, Whalsay, Yell, South Ronaldsay, West Burra, Tiree and Unst which are acceptable
  • Studio flats, freehold flats, flats with unacceptable access arrangements (e.g. rear external staircases) or flats within blocks where our valuer reports inadequate maintenance of communal areas
  • Ex-local authority or ex-public sector flats that are greater than 4 storeys high or that have open decking access
  • Flats converted from office buildings or refurbished ex-local authority blocks
  • Leasehold terms of less than 85 years at the start of the mortgage
  • Properties being purchased under a Right to Buy, Shared Ownership, Shared Equity arrangement
  • Properties which include commercial usage within the title
  • Properties with occupancy restrictions
  • Properties being acquired under an assignable contract
  • Purchases where the vendor has owned the property for less than 6 months (except where we have given consent)
  • Properties with communal heating, hot water or other services where the property is not individually metered
  • Properties with solar panels may be acceptable; please call for more details.
  • Flats that exceed 75% Loan to Value (LTV) within blocks that have mixed residential and commercial use, unless:

a)In a development over 6 storeys and built after the year 2000. 
b)Commercial use is confined to the ground floor and not detrimental to future saleability.

This list is not exhaustive. Some non-traditional forms of construction won’t be accepted. If the property is built from anything other than brick or stone, if the roof is not tile or slate, or if it's a self-built property, please call for further details.

Age: Minimum: 18
Term: Maximum: 35 years or the number of years it will take the (eldest) applicant to reach 75 (whichever is lower). Minimum:  5 years. If term goes beyond anticipated retirement age the entire mortgage must be on a repayment basis and we may ask for evidence of means to repay until the end of term.
Overpayments:

You can overpay at any time during your mortgage term.

If you’re in a promotional period, you can overpay a minimum of £500 and a maximum of 10% of the outstanding mortgage balance (as at 31st March the previous year) without incurring any early repayment or administration charges.

Once the promotional period is over, the amount you can overpay is unlimited, however if you pay off your mortgage in full charges may apply.

Ability to pay We will review your application to ensure we are satisfied with your ability to pay. This will include a review of your overall circumstances including the amount of debt you have in relation to your income. For repayment mortgages, a minimum household income of £20,000 is required. Any income used to assess affordability must be contracted and paid in GBP.
Employment status: Employed or self-employed (3 years minimum trading and the last 2 years accounts required).
Contractors:

We will consider applications from contractors, subject to the following criteria:

  • a minimum of 12 months contracting in their current occupation
  • a minimum gross contracting income of £50,000 per annum. We will base affordability assessment on 80% of the applicant’s gross income
  • a maximum of 90% Loan to Value (LTV)
  • we will use the current contract for income assessment, but we will also review all contracts held in the last 12 months

Applications from contractors are also acceptable under standard self-employed criteria.

Interest only criteria:

You can borrow a maximum of 60% of the purchase price or valuation (whichever is lower) on an interest only basis, or a combination of repayment and interest only, subject to:

  • a minimum equity of £200,000
  • A minimum assessable individual income of £50,000 per annum or minimum assessable joint income of £75,000 per annum (where neither applicant fulfils the individual income requirement). Income for all applicants must be contracted and paid in GBP

We are unable to lend into any applicant’s retirement on an interest only basis

If your loan exceeds the specified loan to value then the entire amount must be on a repayment basis

We only accept the sale of this mortgaged property as the repayment strategy. This will be verified by an underwriter to ensure that it’s credible.

Refinance:

You can remortgage to raise additional capital as long as:

  • additional funds cannot be used for business or speculative purposes
  • Debt Consolidation loans will be considered subject to individual assessment by an underwriter.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

 

General lending criteria
Lending areas: Properties in England, Scotland (including the Scottish islands of Skye, Bute, Lewis & Harris, Mainland Orkney, Mainland Shetland, Arran, Mull, Islay, Whalsay, Yell, South Ronaldsay, West Burra, Tiree and Unst - please contact us to discuss properties located on any other Scottish islands), Wales and Northern Ireland (unless otherwise stated).
Property owner:

Transactions are only acceptable where the seller is the owner or registered proprietor of the property, and has been for at least 6 months.

If you’re remortgaging, you must have owned the property for a period of at least 6 months

Nationality: Applicants are normally required to be resident in the UK for the 3 years preceding the mortgage application. Foreign Nationals from within the European Economic Area (EEA) have automatic rights of residency and work, so will be assessed for status in the same way as a British citizen. Non EEA citizens need to demonstrate rights to work and reside in the UK and can apply to borrow up to a maximum of 75% Loan to Value. These rights can be shown by passport stamps or Home Office papers. The right to remain in the UK must be for a sufficiently long period to justify the granting of a long-term loan.
Early Repayment Charge: If you repay all or part of your loan before the end of the early repayment period, you may be charged an Early Repayment Charge to cover any losses that the lender might otherwise incur. When you repay the whole of the loan you must pay the lender any mortgage release fee they charge at the time of repayment. If you have deferred payment of the lending fee you must also pay this. For part repayments, an additional administration fee will apply.
Clean Credit History:

We will not lend to you if you have ever:

  • been bankrupt
  • been subject to an Individual Voluntary Arrangement (IVA)
  • owned a property which has been taken with possession (including voluntary possession)

 

We will normally only lend to you, if in the last 3 years you have had no:

  • arrears on mortgages, fixed loans or rent
  • more than two consecutive missed payments on credit or store cards
  • more than one CCJ to maximum of £250, and not within the last 12 months

Missed mail order or telecoms payments are normally disregarded.

Payday loans: If you have had a payday loan within the last 12 months we won’t normally lend. If you have taken out a payday loan over 12 months ago then your case will need to be looked at individually to assess affordability.
Standard legal fees paid by lender: Remortgage Transaction
If stated in the Offer of Loan, Bank of Ireland UK will pay for the legal fees and disbursements (excluding additional work, see below) providing the remortgage transaction is handled via Legal Marketing Services, and is completed. The firm of Solicitors is instructed to act for us only. If applicants wish to arrange their own legal representation they will be responsible for the legal costs and disbursements incurred. Please note: Bank of Ireland UK will not pay for charges relating to additional work outside the scope of a standard remortgage transaction. This includes further valuation reports, related legal services, transfer of equity, deed of postponement, deed of grant, deed of variation, merger of freehold or leasehold title, leasehold supplements, change of name, telegraphic transfer of surplus funds to borrower, local searches for loans over £1,000,000, or if an exceptional amount of work is required to correct a defective title.

Purchase Transaction
If stated in the Offer of Loan, Bank of Ireland UK will pay the basic fee for the legal work involved in a standard property purchase. This offer of fees assisted conveyancing does not include any payment for cost that the solicitor must pay to a third party such as a local authority or other search fees, Stamp Duty Land Tax, the cost of taking out defective title indemnity insurance or registration fees payable to the Land Registry. The offer also does not include the charge, plus VAT, payable to the solicitor to deal with the settlement of any Stamp Duty Land Tax and the submission of the Stamp Duty Land Tax form or the cost of any associated sale. The solicitor will provide you with full details of this charge and the third party costs you will have to pay. These fees, along with the legal fee for any additional legal work that the solicitor carries out for you, are payable by you. If the purchase does not go ahead, you will not have to pay for the standard conveyancing work carried out, but you will have to pay any third party costs already paid by the solicitor. For property purchases in Scotland please contact us for details of our nominated Solicitor when obtaining your Approval in Principle. If you choose not to use our nominated Solicitor you will be liable for the legal costs.
Product fees: Payments should not be made at application stage. Bank of Ireland UK will deduct the fee from the loan amount upon completion or add it to the loan amount.

 

For help with key terms, please see the Definitions tab.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Definitions

Definitions

Approval in Principle (AIP): An AIP indicates how much you could borrow based on the information you have provided, it performs various criteria and credit reference agency checks, and gives a conditional decision to lend based on its findings.

APRC: Annual Percentage Rate of Charge - this shows the overall cost of borrowing, taking into account the term, interest rate and other costs.

Higher Lending Charge: A fee which may be charged if the amount borrowed is more than a given percentage of the value of the property. The lender will use the fee for an insurance policy to protect them against financial loss in the event of a borrower not meeting their mortgage payments. The fee is usually payable in full up front. You may be liable for any mortgage shortfall debt if after possession the sale proceeds are not enough to repay your outstanding debt. Choose a Post Office Money mortgage and the Higher Lending Charge is paid by the lender for mortgages above 75% LTV. No Higher Lending Charge is payable for mortgages up to 75% LTV. See the Lending Criteria for more information.

Loan to Value (LTV): It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation.

No product fee: There is no product fee to pay. These are ideal if you do not want to pay a product fee or add one to your mortgage.

Overall cost for comparison: The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation assumes that you keep the mortgage for the full term. APRC is the industry standard calculation and allows you to directly compare mortgages from all lenders.

Product fee: This is a fee charged on some mortgages as part of the product. It can be paid upfront or added to the loan. If you add it to your mortgage it will increase your outstanding balance and interest will be charged for the duration of the mortgage.

Standard legal fees: If your mortgage states that standard legal fees are paid by the lender, the lender will pay the fees if you use their nominated solicitors. Terms and conditions apply, additional legal work may incur additional fees, please refer to the General Lending Criteria for full details.

Standard valuation: Also known as a lender's valuation this is a basic assessment that's carried out on a property to establish its condition and value. If your mortgage states that valuation fee is paid by the lender, the lender will pay for one standard valuation on the application. You can upgrade to a full HomeBuyer survey for an additional fee.

0800: All calls to 0800 numbers are free of charge whether made from a landline or mobile phone. Calls may be monitored or recorded for training and compliance purposes.

Small print

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Subject to status and lending criteria. Written illustrations available upon request. Borrowers must be aged 18 or over.

Post Office Limited is an appointed representative of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, FRN 512956. You can check this on the Financial Services Register by visiting the website www.fca.org.uk/register or by contacting the Financial Conduct Authority (FCA) on 0800 111 6768. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England & Wales (No. 07022885). Registered Office: Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Limited is registered in England and Wales (No. 2154540). Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money and the Post Office Money logo are registered trademarks of Post Office Limited.