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www.mbs-intermediaries.comFamily giftedAcceptable. Gifts from immediate family members are acceptable(immediate family includes parent, legal guardian, grandparent, child,grandchild or sibling. The donor must be over 18). The donor of any gift isasked to sign a declaration. In exceptional circumstances the underwriterreserves the right to obtain proof of funds and refer to the FinancialCrime Team if appropriate. We will not accept gifted deposits if protectedby a Deed of Trust.Capital raised from anotherpropertyIt is acceptable to raise funds on another property.Section 8 - Interest Only (Standard Residential Mortgages Only)Maximum LTV50% on interest only. Part interest only and capital repayment can beconsidered. Please refer to our broker helpdesk.Minimum incomeAt least one of the applicants must earn a minimum 50k / jointincome 80k.Please refer to sections 3 & 4 regarding acceptable incomes.Maximum ageRepayment strategy must repay the loan by 85th birthday. If the term ofthe mortgage takes applicant(s) beyond their state retirement age thenthe Society will make an assessment of the likelihood of employmentcontinuing. If lending into retirement we will require evidence of pensionincome and will use this to assess the amount of borrowing.Acceptable repaymentstrategy Sale of another UK property (valuation will be required, and equitymust be at least 110% of the interest-only loan). Savings (must have been in place for at least 12 months and must beequal to or greater than the interest-only loan). We will not acceptstocks and shares. Pension (25% of the pension fund based on a mid-growth projectionmust be equal to or greater than the interest-only loan). Endowment (100% of the maturity value based on a mid-growthprojection must be equal to or greater than the interest-only loan).Debt consolidationWe will not consider any element of debt consolidation on an interestonly basis. If any element of a loan is for debt consolidation, then theentire loan must be on a repayment basis.06

www.mbs-intermediaries.comSection 9 - Capital Raising (Standard Residential Mortgages Only)Debt ConsolidationMaximum 30k up to 80% LTV (subject to scheme rules).Mortgage must be on a repayment basis. Limited to 25 years for term.Capital RaisingAllowed for any reasonable purpose (excludes tax liabilities/gamblingdebts or any business purposes). A maximum of 90% and 85%if unencumbered. Purpose of capital raising must be specified.Unacceptable Purpose Any business purposesTax settlementGambling debtsSection 10 - Retirement Interest Only MortgagesMaximum LTV50%.TermThis is an Interest Only mortgage with no set end date. The term will endwhen the last borrower dies or is taken into long term residential care.Loan size Minimum 40k. Maximum 250k.Please refer to our product guide for any product specific restrictions.07Age Minimum age 55. Maximum age 80, based on the age of the oldest borrower.Consideration may be given to existing customers.Maximum no applicants2.Repayment methodInterest Only - We will not consider any element of part interest &part repayment.

www.mbs-intermediaries.comIncome Applicants must already be retired and claiming pension income. We can consider applications where either applicant is still working.However, employed/self-employed income will not be used on anaffordability assessment. All pension income will be considered as well as other sources ofincome such as property. For example, a Buy-to-Let investment. State pension is an acceptable form of income. Income from rental portfolios will be considered subject to receiptof the appropriate 2 years SA302’s and corresponding tax yearoverviews which show profit from Land & Property. For joint applications, both applicants must be able to afford themortgage independently. Affordability checks will be carried out on thisbasis and include looking at spousal pensions in the event of death. Investment income may be considered by exception – please refer toour broker sales team prior to submission.Pension Income VerificationPrivate pension The most recent pension statement dated within the last 12 months. Flexible pension drawdowns – A copy of the last 12 months statementto show drawdowns and current value of the pension pot. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.State Pension Letter of confirmation from The Department for Work and Pensionsconfirming pension amount payable dated within the last 12 months. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.GuarantorsNot acceptable.Employment/SelfEmployment statusApplicants should already be retired.Separate legal adviceThe Society requires that the applicant(s) have received separatelegal advice.PortingExisting Retirement Interest Only borrowers will be able to port theirRetirement Interest Only mortgage if they move to a new home. Whenwe receive your Retirement Interest Only mortgage application, wewill assess it against our underwriting criteria and check the type ofproperty is suitable. This includes a further assessment on affordabilityto help us decide whether we will lend to the individual.08

www.mbs-intermediaries.comLasting Power of AttorneyA Lasting Power of Attorney allows a designated person(s) to beauthorised to make decisions on the applicant(s) behalf. Attorney(s)are able to manage the mortgage account and its closure in the eventof the applicant(s) ill health or incapacity to manage their affairs.If a Lasting Power of Attorney is in place, the Society will require a copywhich has been registered with the Office of the Public Guardian andcertified by a Solicitor, prior to completion.Section 10a - Retirement Interest Only Remortgage – Capital Raising – MortgagedProperty & UnencumberedMaximum LTV50%.TermThis is an Interest Only mortgage with no set end date. The term will endwhen the last borrower dies or is taken into long term residential care.Loan size Minimum 40k. Maximum 250k.Please refer to our product guide for any product specific restrictions.09Maximum no applicants2.Repayment methodInterest Only - We will not consider any element of part interest &part repayment.Separate legal adviceThe Society requires that the applicant(s) have received separatelegal advice.

www.mbs-intermediaries.comIncome Applicants must already be retired and claiming pension income. We can consider applications where either applicant is still working.However, employed/self-employed income will not be used on anaffordability assessment. State pension is an acceptable form of income. Income from rental portfolios will be considered subject to receiptof the appropriate 2 years SA302’s and corresponding tax yearoverviews which show profit from Land & Property. For joint applications, both applicants must be able to afford themortgage independently. Affordability checks will be carried out on thisbasis and include looking at spousal pensions in the event of death. All pension income will be considered as well as other sources ofincome such as property. For example, a Buy-to-Let investment. Investment income may be considered by exception – please refer toour broker sales team prior to submission.Pension Income VerificationPrivate pension The most recent pension statement dated within the last 12 months. Flexible pension drawdowns – A copy of the last 12 months statementto show drawdowns and current value of the pension pot. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.State Pension Letter of confirmation from The Department for Work and Pensionsconfirming pension amount payable dated within the last 12 months. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.Acceptable purpose Property Improvement/Purchase (UK or overseas). Estimates mustbe obtained for all amounts above 20k. Consumer Purchase (car etc). Purchase of Freehold/Lease extension. Transfer of Equity. Purchase of adjoining land. To fund a deposit for a child’s house purchase. School or University fees. Deposits or funding for the purchase of rental properties orsecond homes.Unacceptable purpose Any business purposes. Tax settlement. Gambling debts. Debt consolidation.10

Lasting Power of AttorneyA Lasting Power of Attorney allows a designated person(s) to beauthorised to make decisions on the applicant(s) behalf. Attorney(s)are able to manage the mortgage account and its closure in the eventof the applicant(s) ill health or incapacity to manage their affairs.If a Lasting Power of Attorney is in place, the Society will require a copywhich has been registered with the Office of the Public Guardian andcertified by a Solicitor, prior to completion.Section 10b - Retirement Interest Only - Further AdvancesMaximum LTV50%.The Interest Only element should not exceed 50%. The Society will notconsider part Interest & part Repayment.TermThis is an Interest Only mortgage with no set end date. The term will endwhen the last borrower dies or is taken into long term residential care.Minimum Advance 10,000.Income Applicants must already be retired and claiming pension income. We can consider applications where either applicant is still working.However, employed/self-employed income will not be used on anaffordability assessment. All pension income will be considered as well as other sources ofincome such as property. For example, a Buy-to-Let investment. State pension is an acceptable form of income. Income from rental portfolios will be considered subject to receiptof the appropriate 2 years SA302’s and corresponding tax yearoverviews which show profit from Land & Property. For joint applications, both applicants must be able to afford themortgage independently. Affordability checks will be carried out on thisbasis and include looking at spousal pensions in the event of death. Investment income may be considered by exception – please refer toour broker sales team prior to submission.Pension Income VerificationPrivate pension The most recent pension statement dated within the last 12 months. Flexible pension drawdowns – A copy of the last 12 months statementto show drawdowns and current value of the pension pot. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.State Pension Letter of confirmation from The Department for Work and Pensionsconfirming pension amount payable dated within the last 12 months. Latest months bank statement which should show the latest pensioncredits. Prints from on-line statements are accepted provided thatthe names of the financial institution and account holder can beidentified along with the sort code and account number.11

Existing mortgageMust have been in place for a minimum of 6 months.Acceptable purpose Property Improvement/Purchase (UK or overseas). Estimates mustbe obtained for all amounts above 20k. Consumer Purchase (car etc). Purchase of Freehold/Lease extension. Purchase of adjoining land. To fund a deposit for a child’s house purchase.Unacceptable purpose Business Purposes. Tax liabilities. Gambling debts. Debt Consolidation.ValuationA revaluation is required in all instances.Lasting Power of AttorneyA Lasting Power of Attorney allows a designated person(s) to beauthorised to make decisions on the applicant(s) behalf. Attorney(s)are able to manage the mortgage account and its closure in the eventof the applicant(s) ill health or incapacity to manage their affairs.If a Lasting Power of Attorney is in place, the Society will require a copywhich has been registered with the Office of the Public Guardian andcertified by a Solicitor, prior to completion.Section 11 - Buy-to-Let (non-portfolio)Applicant(s) All of the applicants must be an existing home owner-occupier. We will lend to first time landlords.Maximum LTV75%TermMinimum 5 years.Maximum 40 years.Loan sizeMinimum 40k.Maximum 1m or 3m aggregate.Maximum number ofPropertiesStandard Buy-to-Let - 3 encumbered properties.Please refer to product guide for any product specific restrictions.Age Maximum no applicants4.Minimum Age 21.Maximum age 85, based on the eldest applicant.Where the term of the mortgage takes the applicant(s) beyondstate retirement age/intended retirement age we will not requireproof of projected pension income.12

Minimum incomeAt least one applicant must earn a minimum income of 25k.Please refer to Sections 3 & 4 regarding acceptable incomes.Professional landlords(i.e. income only derived fromrental income)Please refer.Rental Income requirementsPlease see ‘Rental Income Table’ in Section 16.If repayment, do you assessrental coverage on therepayment amount or do youdefault to interest only?Interest only.Student tenantsUp to 4 provided all on one AST, and the property is used as asingle dwelling.Consumer Buy-to-LetYes, subject to full income and affordability checks as per residentiallending requirements.Parties to the MortgageAll persons who have registered title to the property must be party tothe mortgage.Tenancy agreementsProperty must be let under a Single Assured Shorthold Tenancy subjectto no subletting.AST term6-12 months.Applications will not beconsidered in respect of: Right to buy council homes.Properties sold at auction.Multiple Lets e.g. students. Refer to our Houses in MultipleOccupancy section.Properties let to family members.Section 12 - Limited Company Buy-to-Let (non-portfolio)13Maximum LTV75%.TermMinimum 5 years.Maximum 40 years.Loan sizeMinimum 40,000.Maximum 3m aggregate.Maximum Number ofProperties3 encumbered properties.

Applicant(s) The company must be set up as a Special Payment Vehicle (SPV).Directors can only finance one SPV to the Society.Personal guarantees from all directors.See specific products for minimum experience in the Buy-to-Let sector.AgeMinimum Age 21.Maximum age 85, based on the main earner at the end of the mortgage.Where the term of the mortgages takes the applicant(s) beyond stateretirement age / intended retirement age we will not require proof ofprojected pension income.Special purpose vehiclesMust be UK based Ltd companies with UK based Directors, set upspecifically for the purpose of buying, selling and letting property.Maximum DirectorsLimited Company should have not more than 4 Directors who own100% shareholding between them.Unacceptable propertiesNo ‘Right to buy’ council homes or auction properties.Minimum incomeOne director must have a minimum income from employment, selfemployment or pension of 25,000. Profits from rental are acceptableprovided these are verified via 2 yrs SA302’s.Interest Coverage Ratio (ICR)Please see ‘Rental Income Table’ in Section 16.Section 13 - Houses in Multiple Occupancy, Multi-Unit Freeholds & als, Limited Company.When Lending to individuals each applicant must be a homeowneri.e., they must own and reside in their own property at the time ofthe application.Minimum purchase price/valuation 150,000.Minimum Loan 40,000.Maximum Loan 1,000,000 or 3,000,000 aggregate.Maximum LTV75%.Repayment methodHouses in Multiple Occupancy & Multi-Unit Freehold - Capital andInterest repayment, Interest Only or part Capital and Interest /partInterest Only, will also be accepted.Semi-Commercial - Repayment only.14

Property typeMulti-Unit Freeholds (up to 4 units) Houses in Multiple Occupancy(Up to 6 bedrooms).For Multi-Unit Freeholds we would normally expect them to haveindependent services such as the utilities.Semi-Commercial - At least 40% of the property must be used forresidential purposes.Maximum number ofproperties to be mortgagedHouses in Multiple Occupancy & Multi-Unit Freehold - Maximum of 3encumbered properties. Anything over, please see portfolio lending.Semi-Commercial - up to 3, anything over needs to be referred.IncomeOne applicant/Director must have a minimum income fromemployment, self -employment or pension of 25,000. Profits fromrental are acceptable provided these are verified via 2 yrs SA302’s.Interest Coverage Ratio (ICR)Please see ‘Rental Income Table’ in Section 16.Acceptable tenancyThe property should be let under a single Assured Shorthold Tenancyagreement (AST) of no less than 6 and no more than 12 months.Evidence of last month’s rent paid required.For Houses of Multiple Occupancy of up to 4 tenants they can eitherall be on one agreement, however, where there are more than 4, eachtenant should have their own individual AST.Other occupantsNot acceptable - Sharing, assigning, sub- letting, multi-letting, chargingor parting with possession of all or any part of the property, or using theproperty other than for residential purposes is not permitted.Debt consolidationNot permitted.Section 13a - Houses in Multiple Occupancy, Multi-Unit Freeholds & Semi-Commercial Re-mortgage for Capital Raising (non-portfolio)15Acceptable purpose Property Improvement/ Purchase (UK only). We have removed theneed to ask for estimates under 20K. Purchase of freehold / lease extension. Transfer of Equity. Purchase of adjoining land. Deposit for a purchase of a child’s house. Consumer Purchase.Unacceptable purpose Debt Consolidation (Including repayment of family debts). Tax settlement. Gambling debts. Any business purpose other than investing in or increasing thecurrent portfolio.Debt consolidationNot permitted.

Section 14 - Holiday Lets (non-portfolio)Applicant(s) The Society offers non-regulated Holiday Let mortgages toindividuals, joint applicants and Limited Companies. Each applicant must be an existing owner-occupier. We will lend to first time landlords.General Maximum 3 holiday lets with the Society. Unlimited holiday Lets/Buy-to-Lets with other lenders. Up to 20 holiday lets are allowed as part of a portfolio product. Specific products for holiday let purchases and remortgages - Pleaserefer to product guide for any product specific restrictions.Maximum LTVMaximum 75% LTV.Loan size Minimum loan 40,000. Maximum loan 1m or total 3m aggregate.Property roperty must not be on a holiday park or have any restrictionsPregarding occupancy and must be standard construction, subject toproperty being located in an area commesurate with holiday letting.Term Minimum term 5 years. Maximum term 40 years.Age Minimum age 21. Maximum age 85 based on the oldest applicant.Income Minimum income for 1 of the applicants: 25k. Income cannot be derived from rental income - if term goes beyondretirement age we will

100% - If regular. Annual bonuses 50% - Latest two years evidence via payslips, the average of the last two years taken and then pro-rata to a monthly basis. Shift allowance All LTV's - 100% if evidenced that shift allowance is integral to the role. Car allowance All LTV's - 100% if evidenced as established part of employment.