Criteria
Residential – First Homes – Right to Buy – Help to Buy – Shared Ownership
Our mortgage criteria’s are designed to help your customers with unique circumstances who would benefit from a more human underwriting approach. This includes those with complex income, self-employed, young credit history, and those who have experienced previous financial blips.
Looking to find out how much your client could borrow? Our residential calculator has been built with you in mind.
Minimum age:
Maximum age:
Maximum applicants:
Guarantors:
First-time buyers:
Marital status:
Defaults:
CCJs:
Mortgage / Secured loans:
Unsecured commitments:
IVA & Bankruptcy:
Pay day loans:
Repossessions:
Debt management plans (DMP)
DMP Products
For active DMPs or those satisfied in the last 12 months; see selected products in our residential range
Standard Products
Residential status:
Visa Requirements:
Accepted subject to:
• 3 years UK residency
One Applicant MUST have indefinite leave to remain. Additional applicants must have Indefinite leave to remain OR Right to Reside with acceptable visa type:
Visa’s must have a minimum 12 months validity.
Applicants holding a Visa without indefinite right to remain will not have their income used for affordability purposes.
Diplomatic immunity:
Minimum earned income:
Foreign currency:
Employed:
Income type | Proportion considered |
Basic salary | 100% |
Car allowance | 100% |
Monthly Bonus / Commission | 100% |
Overtime | 100% |
Annual or Quarterly Bonus / Commission | 50% |
Rental | 50% |
Self-employed: Limited Company
Additional remuneration considered where applicants own 100% of the company:
Where additional remuneration is to be added back, finalised accounts will be required
Self-employed: Sole Trader/Partnership:
Retired:
Pension income:
Secondary/additional income:
Maximum LTV:
Maximum term:
Minimum term:
Minimum loan:
Maximum loan:
Maximum lending with Pepper:
Remortgage applications:
Repayment:
Portable:
Offer validity:
Let to Buy:
Right to Acquire:
Evidence of deposit:
Applicants’ savings:
Capital raising remortgage:
Inheritance:
Cash gifted deposit:
Gifted deposits are acceptable from the following:
Unacceptable sources:
New build definition:
Minimum property value:
Locations considered:
Retentions:
Acceptable property:
Timber framed construction:
Flying freeholds:
Coal mining and other forms of extraction:
Electromagnetic fields:
Contaminated land:
Japanese knotweed:
Solar panels:
Freehold:
Leasehold:
Commonhold:
Structural reports
Reports may be accepted from members of the following bodies:
The report must be referred to the valuer for comment. If the report is not addressed to the applicant, written confirmation must be obtained from the originator that its contents may be relied upon by the applicant(s).
We will not lend on any property with either ongoing movement or where monitoring is required, where this is identified by either the valuer, or where evident in the structural engineer’s report.
The valuer may request additional reports from specific governing bodies.
Specialist reports
We may require specialists’ reports. These most commonly will be:
The valuer may request additional reports from specific governing bodies
General:
Flats/Maisonettes:
Non-standard construction:
Flooding:
Restrictive covenants:
Full mortgage application:
Proof of deposit (purchase):
Use of funds (remortgage with a further advance):
Proof of address & identification:
Table 1 | Table 2 |
Valid passport | Valid (old style) full UK driving license |
Valid photo card driving license (full or provisional) | Recent evidence of benefit entitlement |
National identity card | Instrument of a court appointment |
Firearms certificate or shotgun license | Current council tax demand letter or statement |
Identity card issued by the Electoral Office for Northern Ireland | Non-internet generated bank statements and utility bills |
Proof of Visa:
Visa Types Acceptable:
Visa’s must have a minimum 12 months validity
Proof of income – employed:
Proof of income – self-employed:
Expenditure:
Other sources of income:
Child Benefit – Latest bank statement showing credit of Child Benefit (must be payable for at least next 5 years)
Working or Child Tax Credits – Latest full Working or Child Tax Credit award notice, all pages, with receipt evidenced within bank statement. Must be payable for at least next 5 years
Maintenance – A copy of the maintenance agreement, received under a Court Order, a CSA assessment or a written private agreement drawn up between the separating parties and 6 months’ bank statements as evidence of payment
State Pension – Latest annual pension statement or award letter
Pension Credits – Latest Pension Credit Award Notice
Universal Credit – 3 months’ Universal Credit statements confirming breakdown
Disability Living Allowance – Latest Award Notice and must be payable for at least next 5 years
Carers Allowance – Latest Award Notice
Private Pension – Latest annual pension statement or award letter
Latest payslip from pension provider or
Latest letter from pension provider confirming pension due on retirement
Rental/mortgage history:
Where the applicant is currently renting, we will ask to see proof of their last 12 months’ rental payments. This can be through their AST, in addition to bank statements or reference from a letting agent. For current homeowners, where their mortgage is not available on Equifax, we will require the latest 12 months mortgage statement
Defaults:
CCJs:
Mortgage arrears:
Unsecured arrears:
IVA/Bankruptcy:
Pay day loans:
Repossessions:
Debt management plans (DMP):
Please refer to the Right to Buy product page for further details on each product level.
Maximum LTV:
Maximum term:
Minimum term:
Maximum Loan:
Remortgage applications:
Locations considered:
Acceptable property:
Section 125 Agreement/Right to Buy
Offer Agreement:
Repayment:
Defaults:
CCJs:
Mortgage arrears:
Unsecured arrears:
IVA/Bankruptcy:
Pay day loans:
Repossessions:
Debt management plans (DMP):
Please refer to the Shared Ownership product page for further details on each product level.
Maximum LTV:
Maximum term:
Minimum term:
Maximum Loan:
Acceptable property:
Repayment:
Locations considered:
Rent Payable:
Ownership:
Leasing:
Memorandum of Sale/Offer Letter:
Rent/Service Charge(s):
Vendor:
Defaults:
CCJs:
Mortgage/Secured loans:
Unsecured commitments:
Pay day loans:
Repossessions:
Please refer to the Help to Buy product page for further details on each product level.
Maximum LTV:
Maximum term:
Minimum term:
Maximum property value:
Region | Maximum Property Price |
Wales | £300,000 |
Capital Raising:
Purchase locations considered:
Remortgage locations considered:
Acceptable property:
Evidence of deposit:
Minimum EPC rating:
Repayment:
Defaults:
CCJs:
Mortgage arrears:
Unsecured arrears:
IVA/Bankruptcy:
Pay day loans:
Repossessions:
Debt management plans (DMP):
Please refer to the First Homes product page for further details on each product level.
Maximum LTV:
Maximum term:
Minimum term:
Maximum Loan:
Remortgage applications:
Locations considered:
Authority to Proceed:
Repayment:
To discuss a case, or find out more about our products, call our experienced team. Ready to submit? Log into the application portal to get started, or register if it’s your first case with Pepper Money.
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