Criteria guide

Remortgage with additional borrowing

The purpose of additional borrowing must be genuine and legal. We don't support speculative investments.

Maximum LTVs

Standard new business maximum LTVs per property type, region and loan amount also apply.

LTV is limited to 90% in the following scenarios:

  • Remortgage only
  • Remortgage and transfer of equity (i.e. buying out another owner)
  • Remortgage and staircasing to 100% shared ownership*
  • Remortgage and repay Help to Buy loan*
  • Remortgage and repay shared equity loan*
  • Remortgage and non-structural home improvements
  • Remortgage and capital raise for lease extension or purchase of freehold.**

*Must staircase to full ownership.

**Must meet minimum lease criteria. Based on pre-lease extension value.

LTV is limited to 80% in the following scenarios:

  • Remortgage and capital raise for gift to a relative – limited to £10k unless for a house deposit for a close relative
  • Remortgage and capital raise to purchase a BTL property
  • Remortgage and capital raise to purchase a timeshare – limited to £20k and 1 drawdown only
  • Remortgage and capital raise to purchase consumer goods – limited to £20k
  • Remortgage and capital raise for school fees –1 drawdown only
  • Remortgage and capital raise to repay 2nd charge
  • Remortgage and capital raise for debt consolidation – limited to lower of £30k or 10% of mortgage, and affordability assessment must assume debts are not repaid
  • Remortgage on unencumbered property – only for buying out partners

Unacceptable loan purposes

The following borrowing types are not acceptable. This list is not exhaustive.

  • Accident, sickness and unemployment premiums
  • Business purposes
  • Tax bills, e.g. unpaid self-employed corporation tax
  • Court fines
  • Illegal activity
  • Speculative purchases, including currency speculation e.g. cryptocurrency, gambling, stocks and shares
  • Transfer of title where the transferor(s) are bankrupt and/or the purpose is to avoid payment of their liabilities to creditors
  • Where the purchase application is part of an assignable contract

Acceptable types of additional borrowing include:

  • Staircase to 100% shared ownership
  • Repay Help to Buy Loan
  • Repay Shared Equity Loan
  • Purchase of Timeshare
  • Purchase of a Buy to Let Property
  • Purchase of second home or holiday home
  • Home improvements, specifically, non-structural improvements to a habitable property, such as a new kitchen or bathroom, central heating, replacing double glazing, decoration, essential repairs, or maintenance to the property, etc.
  • Purchase lease extension
  • Purchase of freehold
  • School fees
  • Debt consolidation (broker channel only)
  • Remortgage on unencumbered property (e.g. buying out another owner)