Applicants with Impaired Credit History
Applicants with impaired credit history may be considered under certain circumstances. The rules may be segmented into the following sections:
- Acceptable (for consideration)
Unacceptable Credit History
Where any party to the application:
- Has an undischarged bankrupt, or has been discharged from bankruptcy within the past 3 years.
- Is subject to an Individual Voluntary Arrangement (IVA), or has been discharged from an IVA within the past 3 years.
- Has previously had their property repossessed (including voluntary surrender of keys).
- Has more than 2 Court Decrees, CCJs or Defaults, even if these have been satisfied or settled.
- Has had any Court Decrees, CCJs or Defaults within the past 12 months (see below for further clarity).
- Has one or more Court Decrees, CCJs or Defaults where the total debt was £2,500 or more, irrespective of when it was registered.
- Has one or more Court Decrees, CCJs or Defaults where the total debt referred to is £500 or more and this/these have been registered in the past 3 years.
Acceptable for Consideration
- Discharged bankrupts of 3 years or more.
- Applicants discharged from their IVA for 3 years or more.
- Applicants who have never been 3 months or more in arrears in the past 24 months on any existing secured or unsecured loan, and the account has been up to date for at least 6 months, provided there is a reasonable explanation for the arrears.
- The Society will require a full explanation on the circumstances surrounding any default/CCJ noted in the credit file.
- Up to two satisfied Court Decrees, CCJs and Defaults will be considered in accordance with the following table:
Time Since Registered
< 1 year
> 1 year
> £500 but < £2,500
> 3 years
Voters Roll/Proof of Occupancy
- Personal status details including inclusion on the Voters Roll will be checked for all parties to the mortgage (including guarantors) at all addresses within the previous three years.
- Appropriate proof of occupancy is required if the borrower does not appear on the current Voters Roll.
- Proof of identity, as required by the current Money Laundering Regulations and the Regulator is also required.
Applicants with Other Mortgage Borrowing
The Society will only provide owner-occupier mortgages where the mortgaged property is to be used as the applicant’s principal private residence or as a second home for their sole occupation.
Other mortgage borrowing, either of a commercial nature or on Buy-to-Let should be placed on an appropriate product upon completion of the owner-occupier mortgage.
FOR INTERMEDIARY USE ONLY