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To search for an item in the Society's Lending Criteria you can either:

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People

Age Limits / Lending Into Retirement

Our standard minimum age at the start of the term is 18 years old.

Our standard maximum age at the end of the term is 75 years old for residential lending where the customer is not retired at the point of application or is not borrowing on a Capital & Interest basis.

Where all applicants are retired at the point of application we will allow a maximum age of 80 years old at the end of the term as long as the mortgage application is on a Capital & Interest basis.

This limit has been set based on a risk assessment of ageing borrowers and also in consideration of our customers best interests. As a result we aim to ensure our customers have options during the mortgage to either remain with Skipton or potentially choose another lender if that is suitable and do not become "trapped borrowers".

Lending Into Retirement

Evidence of pension income and other acceptable retirement income is required where the mortgage term takes the borrower past either (the lower of) 70 years or their elected retirement age to enable the underwriter to take into account the likely impact of retirement on affordability

This assessment should be carried out according to the following three tiered process;

  1. Retirement is less than ten years away
    Borrowers within ten years of retirement will need to provide proof of their projected pension income, as well as their current earned income. The lower of the two will be used within the affordability model.
  2. Retirement is ten or more years away and the term is up to five years after retirement starts
    We’ll request evidence that a pension exists for those more than ten years away from retirement.
  3. Retirement is ten or more years away and the term is over five years into retirement
    If the term extends over five years into retirement, an additional assessment will be carried out by an underwriter.

Any pension income that is being used within the affordability assessment must be received in £Sterling (IOM£ / Gibraltar£ also acceptable) by the applicant. Where concerns exist with regards to affordability, the application will be declined.

Contractors e.g. IT / Management Consultants (Self Employed)

Evidence of income required:

  • minimum of 12 months contract history with a minimum of 2 years' experience in the same field of work (as evidenced by customers CV)
  • copy of 1 month personal and 1 month business bank statements
  • minimum annual income (based on daily rate) of £50,000.

To calculate income we will use daily rate x 5 x 48 (weeks) irrespective of whether operating as a Sole Trader or through a Ltd company. Daily rate to be entered as earned income (in basic salary income field).

Any income being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

Credit Search / History

The Society uses Call Credit for its credit checks. You can find more information on our Credit Scoring Guide.

All applications must have a credit score of Pass or Refer.

  • Non Secured Loans
    Max 2 months arrears within last 2 years.

An application with any of the issues below must obtain a Pass score;

  • CCJ's
    1 CCJ no more than £500 within the last 3 years (satisfied at least one year)
  • Defaults
    Two defaults no more than £500 each within the last three years (satisfied and over one year old)
  • Mortgage Arrears
    No more than 1 missed payment within the last 12 months with the latest 6 months being up to date, and not to have exceeded 2 months in the last 2 years
  • Bankruptcy & IVA
    Not generally acceptable but a referral can be considered if the bankruptcy or IVA has been discharged for at least 4 years

Note: Where current Pay Day / Home Credit loans or Debt Relief Order exist or where multiple issues exist (i.e. combination of the above) then the application will be declined.

Financial Dependants

Definition of Financial Dependants: Dependants are defined as any person (excluding partners) who is financially dependent on the mortgage applicant(s)

Dependents consist of:

  • Dependent Adult - aged 18 years and over and financially dependent on the applicant(s)
  • Dependent Child - aged less than 18 years and financially dependent on the applicant(s)

In addition for the purposes of clarity:

  • These definitions are applicable to both non-BTL and BTL applications
  • Partners are excluded as such information is captured elsewhere as part of the affordability assessment
  • Where an applicant has advised maintenance is being paid for dependants not residing in the property, these persons should be excluded, to avoid duplication in the assessment

The following are not financial dependants - any occupants of a property who are:

  • Self funding (e.g. retired parents with adequate pension income)
  • In full time employment with an adequate level of income
  • Supported in full by foster payments or shared life carers allowance.

If there is any element of financial dependency then the individual should be regarded as a dependant (e.g. if at university and either fully or partially dependent on parent(s).

First Time Buyers

A first time buyer is defined as someone who has never held a mortgage.

For joint applications all applicants must be first time buyers for the application to be classed as a first time buyer case.

  • Minimum 6 months continuous employment
  • Maximum Term 35 years
  • Capital and Interest only
Fixed Term Contract (Employed)

Normal affordability rules apply subject to the following criteria:

  • Must have been contracted for at least 24 months. Copies of previous contracts, as a minimum the last 24 months must be provided. If there are significant increases, the MSC underwriter will fully examine the reasons why, and where appropriate may request additional documentation.
  • Main Residence for their own occupation.
  • Must be in second or subsequent term or a fixed term contract, originally for at least 6 months

OR

  • If within 3 months of contract ending then proof of extension must be obtained.
Foreign Nationals

Applicant(s) must be a UK or EEA Citizen or have indefinite leave to remain in the UK. A copy of the visa page of the applicant’s passport will be required to evidence this.

Where residency is attached to a working or highly skilled migrant visa it will not be accepted.

For joint applications where only one applicant is British National or from the EEA and the other is not, the application may be considered but we will only use the income from the British National or EEA applicant.

Foster Carers

Foster carers do not have to register as self employed or fill in tax returns unless they exceed the qualifying amounts. This can be confirmed at www.hmrc.gov.uk.

However, Skipton will treat Foster Carers as any other self employed person in that we expect a minimum of 2 years' history. To evidence income we require Local Authority remittance notice or verification of Foster Carers allowance for 24 months and this is also to be evidenced by bank statements.

Foster children should not be input as Financial Dependants

Guarantors
Guarantor applications are not acceptable.
ID Verification

Existing customers (active mortgage or investment account)

It is not necessary to verify personal identification again, but current address I.D. is still required. If the applicant is not currently registered on the Voters Roll, then an item of address verification will be required.

New customers

For face-to-face applications, one item of personal I.D. and one piece of address verification (same document cannot be used for both, i.e. a driving licence is acceptable for either personal OR address I.D).

For postal applications, one extra piece of either personal or address verification in addition to above.

Acceptable Personal I.D

  • Current signed passport
  • Current UK full or provisional photo-card driving licence
  • Current full (not provisional) UK (old style, paper based) driving licence
  • Current full EU phto-card drivers licence
  • HM Revenue & Customs Tax Notification
  • Evidence of entitlement to state benefit, pension, tax credit etc.*
  • I.D. cards**
  • Signed firearms certificate
  • Uk residence permit

*These items should no more than 3 months old

**Foreign Identification: See foreign ID section.

Acceptable Address I.D

  • Utility Bill (mobile phone bill NOT acceptable)
  • Council Tax Bill for current billing year
  • Current UK full or provisional photo-card driving licence
  • Current full UK (old style, paper based) driving licence
  • Bank or building society statement showing address*
  • Annual mortgage statement for current year
  • Evidence of entitlement to state benefit, pension, tax credit etc*
  • Official letter from a government agency, e.g. CSA, DVLA, HMRC, JobCentrePlus, NHS*
  • Care Home letter signed by an appropriate authority
  • Council Tenancy Agreement
  • Court appointment instruction (e.g. probate or Court registered Power of Attorney)
  • Currently listed on voter’s roll section of credit search at current address (either opted-in or opted-out)

* Where possible, these items should be no more than 3 months old.

Please note, for an item submitted from the Personal ID list, the same item cannot also be used to confirm Address ID.

Foreign Indentification

Non UK Passport

  • Passport must be verified by the Society Financial Crime Team
  • Passport can be certified by SBS collegue only

Non UK Driving Licence (Issued by EU member state after 19th Jan 2013)

  • Passport can be certified by SBS collegue or regulated intermediary

Non UK Driving Licence (Issued by EU member state below 19th Jan 2013 or by non EU member)

  • Passport must be verified by the Society Financial Crime Team
  • Passport can be certified by SBS collegue only

Identity Card

  • Passport must be verified by the Society Financial Crime Team
  • Passport can be certified by SBS collegue only

Residency Permit

  • Passport can be certified by SBS collegue only
Income (excluding Self Employed)

Where employed, applicants must be in continuous employment for at least 6 months (including First Time Buyers)

Loan to Income calculation

Applications where the loan to income calculation exceeds 4.75 x (acceptable) income, the application will be declined.

We accept 100% of:

  • Permanent basic income
  • Guaranteed bonus / overtime / commission
  • Working family tax credits / benefits. See Benefits section for more information.
  • Pensions (evidence required.
  • War Widow's/Widower's Pension.
  • Car Allowance / Shift Allowance / London Weighting / Mortgage Subsidy
  • Maintenance - where backed up by either a court order or 3 months bank statements showing the maintenance.
  • Universal Credits

We accept 50% of:

  • Regular bonus / overtime / commission non-guaranteed
  • Second job
  • Rental Income (Profit from UK land and property)

Any income being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

Rental Income

We will accept 50% of profit from UK land and property as additional income for residential applications. We require the latest 2 years SA302s and latest months' evidence of rental income to verify SA302s. Average of the last two years SA302 will be used unless latest is lower.

Benefits

Working family tax credits/benefits (WFTC,CTC,Child Benefit) are acceptable where full documentation along with bank statements is provided. We will not accept any other type of benefit income.

Child Benefit will be accepted where the total gross income of each applicant is no more than £50,000. Where the total gross income of any applicant is over £50,000 we will not accept Child Benefit for underwriting purposes.

Where acceptable benefit income is greater than the total acceptable earned income the application will be declined.

Parental Leave

We require a letter from the employer confirming the agreed return to work date, together with the salary details. On the basis that the applicants return to work date is confirmed by the employer then the confirmed salary can be used in the income calculation.

Nurses

The employment starts from when they become qualified and not when they began working on the wards and earned a Bursary. The minimum 6 months employment starts from when qualified and in employment at that time.

Pay Rises

For applicants with a pending pay rise we require a letter from their employer confirming the date of the pay rise together with details of the new salary. The pay rise must be provided by the same employer and be effective within 3 months of the date of the employers letter. The confirmed increased salary can then be used in the affordability assessment. In instances where concerns exist with regards to the validity or reasonability of the pay rise, the underwriters may determine that the case cannot proceed until the pay rise has come into effect.

Statutory Sick Pay

Statutory Sick Pay can be included within the overall acceptable income provided that this does not amount to more than 25% of the overall monthly income, as evidenced via the latest payslip.

Forces Help to Buy Scheme (FHTB)

The Society allows Forces Help to Buy (FHTB) on residential lending. FHTB is a government scheme allowing armed services personnel to borrow up to 50% of their salary by way of an interest-free employer loan (up to a maximum of £25,000) which is then used to fund the deposit for a house purchase. The interest free employer loan is then repaid over a ten year term via the applicant's monthly salary.

SBS new lending criteria stipulate that the customer must provide a minimum of 5% deposit for FHTB applications (in addition to the FHTB deposit of minimum 5%).

A copy of the Personal Information Note (PIN) from the (MOD) will be required as part of the mortgage application for all purchase cases. The PIN is a letter issued by the MOD confirming the applicant meets qualifying criteria and sets out the terms of the loan requested.

It should be noted that the FHTB scheme is completely independent from the Help to Buy - Equity Loan scheme. However FHTB applications are acceptable where the applicants deposit is being provided by the government Help to Buy scheme, in such cases a specific Skipton HTB product must be selected. The Society will also consider FHTB remortgage applications.

Self Employed / Limited Company

Definition of self employed: An individual who operates a business or profession as any of the following:

  • Limited company - with a shareholding of 20% or more.
  • Sole Trader or Partner in a Partnership.
  • Limited Company Partnership - with a shareholding of 20% or more
  • Independent contractor or consultant.

Limited Companies

Evidence of income required is either:

  • Latest 2 years' accounts
  • Latest 1 year's accounts plus 2 year's SA302s
  • Fully completed Accountant certificate

To calculate income, we will use remuneration (basic salary) & dividends received. We will use the latest year's income or an average of the last 2 years, whichever is the lower. The net profit should be higher than the dividends received.

Sole Trader or Partner in a Partnership

Evidence of income required is either:

  • Latest 2 years' accounts
  • Latest 1 year's accounts plus 2 year's SA302s
  • Fully completed Accountant certificate

If there is no accountant or if the accountant is not certified or chartered we may accept latest 2 years' SA302s and 4 months' business and/or personal bank statements to calculate income.

We will use either the latest year's net profit or an average of the last 2 years, whichever is the lower.

Where SA302's are not printed directly from the HMRC online self assessment portal, a copy of the customers Tax Year Overview document will be requested.

Limited Liability Partnership

Evidence of income required is either:

  • Latest 2 years' accounts
  • Latest 1 year's accounts plus 2 year's SA302s
  • Fully completed Accountant certificate

If the applicant is a partner in a large regional or national professional partnership, we may accept an emploment reference from a senior partner or practice accountant, showing the applicant's share of profit.

To calculate income, we will use the applicant's share of the net profit. We will use either the latest year's income or an average of the last 2 years, whichever is the lower.

Where an employment reference is provided we will use the share of profit.

Points of note for all self employed applications:

  • Where being used as part of the income calculation, if the net profit over the last 2 years has significantly increased or reduced, the MSC Underwriters will examine the reasons why and may request more information if required.
  • We will only accept finalised accounts, not draft. Micro or abbreviated accounts can be accepted on a referral basis.
  • We will only accept SA302s marked as "100% complete/submitted". We will accept either HMRC originals or online printed copies.
  • All Accountant Certificates and accounts must be completed by an accountant with acceptable qualificatiions.
  • For all applications, all the information provided will be fully assessed by an underwriter and their decision will be final.
  • Any income being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

Acceptable Accountants Qualifications

For the full list of acceptable accountants qualifications see the accountants certificate on the applications form page found via the link below:
www.skipton-intermediaries.co.uk/mortgages/application-forms

All the listed as acceptable accountant qualifications can be checked by using the website below:
www.icaew.com/en/library/subject-gateways/accounting/abbreviations.

All accounts must be signed either by the individual accountant or in the company name in order for them to be acceptable.

Umbrella Companies
  • An Umbrella Company is a company that has been set up for the sole purpose as to act as an employer.HM Revenue & Customs classify people employed via Umbrella Companies as employed. For mortgage purposes we would classify as self employed.
  • A contract may be for different lengths of time and via different Umbrella Companies but the total length per company and / or site must not exceed the 24 months. If employment exceeds 24 months for the same company and/or site then the position is classified as permanent.

Documents required to evidence the gross income are all of the below:

  • Contracts from the last 2 years
  • Last 2 years'
  • Latest payslip

Policy

Affordability

The affordability model estimates household expenditure so the mortgage payment under stressed interest rates has to be less than or equal to the Effective Disposable Income (EDI).  Any applications not meeting this criteria will be declined.

Any income (employed or self employed) being used within the affordability calculation and/or to make the monthly mortgage payments must be received in £Sterling by the applicant.

At DIP stage the affordability assessment is based on the commitments declared.  All current outstanding loans & credit commitments must be declared, any not disclosed may potentially affect the affordability assessment at full mortgage application stage (FMA) and may result in the application being declined.

The following must also be confirmed;

  • maintenance / child support
  • tuition fees
  • nursery/childcare costs
  • rent (where remaining on completion)
  • service charge
  • ground rent
  • shared ownership rent

In addition, the following must be disclosed at DIP stage:-

  • Details of any other outgoings, regular or otherwise which are likely to affect the ability to meet the monthly mortgage payments
  • Details of any potential changes to income now or in the foreseeable future that are likely to affect the ability to meet the monthly mortgage payment

To carry out an assessment of income and expenditure to establish the maximum that can be borrowed using our online Affordability Calculator.

Capital raising for Debt Consolidation

Capital Raising for Debt Consolidation is allowable with the following restrictions:

  • Must score A-C
  • Max LTV 75%
  • Available only on a Captial & Interest (repayment) basis
  • Maximum Loan amount for debt consolidation is £50,000
  • Evidence of debts to be repaid; statements from the creditor(s) must be submitted with mortgage application. Statements must detail the Company Name, address, telephone number and the account / reference number.
  • Both Remortgage & Additional Loan Applications the money will be paid direct to the applicant(s) who can then pay off the specified debts directly with the creditor.

Any application for Debt Consolidation where the applicant(s) has impaired credit will be declined.

Choosing a Solicitor

If the conveyancer the borrower chooses is on the Society’s panel, we will instruct them jointly.

If the conveyancer the borrower chooses is not on the Society’s panel, the Society will instruct a separate conveyancer to act for it, and two sets of costs may be incurred, for which the borrower will be liable.

The Society does not allow separate representation except where we have instructed our own solicitor to act for the Society. This is in line with the CML Handbook which states: Our instructions are personal to the firm to whom they are addressed and must be dealt with solely by that firm. The conveyancer must not subcontract or assign our instructions to another firm or body, nor may they accept instructions to act for us from another body. If this requirement is not complied with, it may result in the offer being withdrawn until proper instructions from the Society can be given to it’s own chosen firm or body.

Direct Debits
It is a condition of our Mortgage Offer that mortgage payments are made by Direct Debit, in line with the Direct Debit Guarantee.

The Direct Debit payment will be requested by the Society from the customer's nominated bank account on the 1st of the month however the payment may not debit the customer's bank account for up to 3 working days afterwards. This is due to the time it takes for the Direct Debit to be processed after the Society has requested the payment and instances where the 1st of the month falls over a weekend and/or a bank holiday.

Whilst the direct debit payment may not debit the customer's account for approximately 3 working days after the payment date it is important that the customer has sufficient funds in their account from this point.

Family Discounted Purchase

Skipton defines this as an applicant who purchases from a close blood relative for a discount, we can lend up to 100% of the discounted purchase price. LTV is restricted to individual product maximum and is calculated on the loan as a percentage of the open market value. A close blood relative is defined as either:

• Parent

• Child

• Grandparent

• Sibling

• Uncle / Aunt

The Society will not consider applications for simultaneous home improvements or capital raising.

Gifted Deposit

If some or all of the funds being provided towards the purchase of the property is not being provided directly by the borrower and it has been indicated this is by way of gift, full details must be provided at application stage prior to a decision to lend.

On BTL applications gifted deposits are only acceptable with a minimum of 12 months mortgage experience.

Only acceptable where the deposit originated from the UK and is from a close blood relative which is defined as either:

Residential acceptable source of gifted deposits BTL acceptable source of gifted deposits
Parent(s) Parent(s)
Children Children
Grandparent(s) Grandparent(s)
Brother/Sister Brother/Sister
Uncle/Auntie Uncle/Auntie
Step Parent Step Parent
Spouse/Partner
Help To Buy

Scheme Qualifying Rules:

  • Maximum 35 year term (unless prior approval obtained from the Agency)
  • Maximum Purchase Price under the Help to Buy Scheme Rules:
    • England - £600,000
    • Scotland - £250,000
    • Wales - £300,000
  • The full purchase price must be no more than the full market value for the property. SBS valuation report must value up to the full purchase price otherwise the application will be declined
  • Loan to Income calculation: on Help to Buy applications where the loan to income calculation exceeds 4.5 x (acceptable) income, the application will be declined.
  • Additional Borrowing only acceptable if the applicant wishes to raise additional funds to pay off the equity loan – consent must be obtained from the Agency. Loans for capital raising or home improvements are likely to be declined, can only be considered with Agency approval.

The Society requires that you provide evidence of the following at full Mortgage Application stage:

  • Evidence of the applicants deposit must be provided

Offer Validity

Offer extensions may be permitted. Where the original offer period (6 months) has expired, an extension of a further 6 months may be granted provided that completion of the build will take place within this time.

Where an offer extension to 12 months is agreed, a supplementary credit check and affordability assessment will be carried out after the initial 6 month period (with no extra cost to the customer).

Offers will not be granted after 6 months where there is a materially adverse change in;

  • the quality of the application,
  • the customers financial circumstances (ability to repay) or

If. after 12 months from the date of the original offer, the property build is not completed then the offer lapses. We will then consider a new application.

Porting Applications

The below relates to exsiting SBS customers only carrying out a Help to Buy purchase porting existing residential products.

  • Where porting and not topping up with a HTB product, a standard valuation report is required and any fees would be payable by the applicant.
  • Where porting and topping up with a HTB product, a standard valuation report is required and customer may be entitled to free standard valuation as dictates by the HTB product selected.
Home Improvements
  • No set LTV or loan amount restrictions. Max LTV & loan amount is dictated by the product maximum and the application score. Refer to the Maximum Loan To Value section for full criteria.
  • Estimates are required for all home improvements where the LTV exceeds 75%.
  • Home Improvements, where the current LTV exceeds 75%, we will insist on a re-inspection of the property prior to the funds being released. In addition, if for major improvements, evidence of planning permission will be required.

Where additional borrowing is taken and is not to cover major building works or adding material value to the property, underwriters have discretion regarding the release of funds without the need for a re-inspection.

Incentives

Definition of Incentives:

  • Builders may offer sales incentives to potential buyers to encourage them to purchase their property.
  • An incentive is anything the builder gives or provides to the buyer in cash or goods. Typical examples are deposits (i.e. builders deposits) paid before completion and cash paid after completion - often to pay stamp duty or legal fees.
  • As all incentives must be paid for by the builder, they can be regarded as a less transparent alternative to reducing the sale price.
  • For the purposes of clarity; carpets, curtains and white goods are regarded as incentives where they are not part of the standard specification of the properties on the development i.e. where it's clear on the CML form that these are the extra's or an upgrade.

Assessment of Incentives

  • A maximum of 5% incentives are permitted for new build flats where LTV is <=85% and for new build houses where LTV is <=90%.Where the LTV is >85% for flats then the Society does not allow incentives. Where an incentive exceeds 5% irrespective of LTV the application will be declined, referrals / challenges will not be accepted.
  • Where the incentives exceeds 5% irrespective of the LTV the application will be declined. Referrals / challenges will not be accepted.
  • Where the incentives are less than 5%, the max LTV limits for the loan do not change. For example, the maximum LTV on the residential new build property with a 2% incentive would be 85%
  • The borrower must be able to provide a minimum of a 10% deposit.

Evidence

  • Valuers takes incentives into account when preparing the valuation report. Please note that all lending is always subject to a satisfactory valuation.
  • The Society will work off the lower of the valuation or purchase price.

The Society does not accept applications where:

  • The builders/vendors are paying above market value for a part exchange property.
  • Applications that have any form of Vendor deposit funding.

 

Interest Only

Interest Only is acceptable for mortgages and remortgages (except first time buyers)

Maximum LTV

  • Maximum LTV for Interest Only is 70%
  • Maximum LTV for Part Interest Only and Part Capital & Interest is 80% (Interest Only Part restricted to 70% LTV.
  • Applications over 80% LTV must be taken on a Capital & Interest basis

Minimum Income

  • Minimum income for interest only is £40,000 acceptable gross income for sole applications.
  • For joint applications minimum income requirements are; either £40,000 acceptable gross income for main income earner or collective £60,000 gross joint acceptable earned income.
  • This applies to any repayment type where there is an element of interest only.

Max Terms

  • Maximum term for interest only and part and part is 25 years
  • First time buyers must be on C&I with a maximum term of 35 years

Acceptable Repayment Strategies

The Society will only enter into a regulated mortgage contract, where all or part of that contract is on interest-only basis if the customer can provide evidence that a clearly understood and credible repayment strategy is in place and as far as it is reasonably able to assess at the time of underwriting, the repayment strategy has the potential to repay the capital borrowed and that this will be in £Sterling (IOM£ / Gibraltar£ also acceptable).

Acceptable Repayment Strategies are:

Endowment policy provided by a regulation firm

The latest annual statement must be provided as evidence that the sum due to be paid on maturity based on the “medium” projection is equal to or in excess of the proposed amount of mortgage borrowing. The policy is not deposited with or assigned to the Society

Customer Assets

Evidence must confirm that the value of the assets at the time of underwriting is equal to or in excess of the proposed amount of mortgage borrowing.

Acceptable assets are:

  • Equity in a UK property. Where the main residence is being used as the repayment vehicle the maximum LTV for the interest only element is 50% and a minimum of £400,000 of equity must be remaining in the property. Where the overall loan is above 50% LTV, additional repayment vehicles can be used in conjunction with Sale of Mortgaged Property
  • (i)(ii) Pension - up to a maximum of 15% of the customer’s total projected pension pot is permitted, where the minimum projected value of the pension pot is £400,000
  • UK shares and bonds held as investments (including Sharesave schemes and Premium Bonds)
  • Cash savings in a UK deposit account

BTLs owned in the applicants name are acceptable. However BTLs owned in a company name are not acceptable. Equity in Commercial property is not acceptable.

Pension cannot be used as an acceptable repayment strategy if used as part of the income assessment.

Personal Savings

Savings must be personal and not business related.

Unacceptable Repayment Strategies

The following repayment strategies are unacceptable for new lending:

  • Lump Sum repayment
  • Expected inheritance
  • Bonus income
  • Regular overpayments
  • Where the asset is held in or is coming from a foreign country/source (assests ub IOM£ and Gibraltar£ are acceptable)

Where the MSC feel the repayment strategy is unsuitable they will refer the case back to you and advise that the application must be processed on a Capital & Interest basis.

Let to Buy

The Society will consider applications for both the LTB (existing residential property to be let out) and their new residential purchase.
If the mortgage is already with SBS then ‘consent to let’ must be applied for and accepted prior to submitting a Decision In Principle application.

Please note:

•At application stage checks will be made to identify possible misuse of LTB//BTL.  For example, correspondence/security address checking, plausibility checks on the borrower and type of property (such as where the customer renting a property larger than their main residence).
•Checks will be carried out post-completion.  For example, checking of credit files, the electoral roll and correspondence/security addresses.
•No advance on a LTB remortgage without evidence of a new residential offer.
•Further information will be sought if the underwriter has any concerns over the LTB/BTL arrangement.

Minimum Submission Criteria

Cases that arrive fully packaged at first underwrite

These cases will be fully underwritten within our service levels resulting in a quicker offer AND will secure the chosen mortgage product.

Cases with some supporting documentation at first underwrite

Any application that is submitted with some supporting documentation (e-declaration AND most of supporting documentation) will be underwritten as normal and the intermediary/branch will have 15 days to submit the remaining documents.

If all documentation is not received within 15 days, the case will be cancelled. When documentation is ready to be submitted, contact the MSC on 0845 601 6683 for the case to be reinstated. Documents can then be up-loaded or faxed.

Should the product be withdrawn during this 15 day period, then the case will only be accepted on that product if full submission is received by the required deadline which will be notified to you by e-newsletter.

Cases received with no supporting documentation at first underwrite

Any application that is submitted WITHOUT supporting documentation at the first underwrite will be cancelled and the intermediary / branch will be notified. The case must be re-keyed once all supporting documentation is ready to be submitted and will be subject to existing products and policies that apply at the time.

Please note that the underwriting and Business Development Team have been advised that any cases received WITHOUT supporting documentation then subsequently resubmitted by an intermediary / branch, cannot take priority and will be underwritten in date order.

Where applications are received in the name of the broker themselves, these can be accepted provided that full advice is obtained (i.e from a fellow mortgage professional as ‘execution only’ is no longer an option). Alternatively brokers may apply through Skipton Direct.

The list below details the minimum submission requirements. The underwriters will use the documents provided with the application however, after assessing income and affordability if felt appropriate additional payslips, bank statements and or a P60 may be requested.

Residential Applications - All applications excluding Buy To Lets (BTLs) and Additional Borrowing

  • signed Application Form (inc DD)
  • payslips - latest 1 full month
  • latest P60 – required only if using other income in addition to basic income
  • accounts - latest 2 years' accounts or latest 2 SA302 plus latest 1 year accounts. Accounts must be signed by a certified accountant.
  • bank statements - latest 1 Full month.
  • I.D. & address verification system to electronically validate – may be required in some circumstances
  • copies of last 12 months contracts (Contractors only)
  • copy of CV (Contractors only)
  • latest 1 full month personal and business bank statement (Contractors only).
Min/Max Loan Amount Max LTV

Maximum Loan To Value

Maximum LTVs are dependant on Application Score

Loan Amount Max LTV
Up to £450,000 95%*
£450,001 - £500,000 90%
£500,001 - £625,000 85%
£625,001 - £750,000 80%
above £750,000 75%

* 95% LTV available for residential purchase business only (not available for remortgages). In addition the following lending types are limited to 90% LTV: Shared Ownership/Help to Buy/Right to Buy/New Build/LIFT.

No minimum loan but minimum property value / purchase price (whichever the lowest) £50,000.

All loans in excess of £1m must be referred to the Society for consideration.

Mortgage Offer Expiry Dates

Mortgage offers are valid for 6 months from the date of the first mortgage offer. After 6 months the Society may consider extending the offer but this will be subject to an up to date credit search and up to date income and affordability checks. A further valuation inspection may also be required. Any additional valuation fee may be payable by the applicant. If the mortgage product is no longer available, the applicants will be required to select a new product from the current range and a product switch fee may be payable by the applicant.

In some instances the mortgage offer expiry date may be product driven and may result in a shorter offer expiry period such as 3 months. Please refer to the specific product literature.

For new build properties the offer validity period is 9 months with the option to extend for a further 3 months subject a to up to date credit search and affordability assessment being carried out.

Non-Borrowing Occupier

Forms of Consent are required in all cases where the loan is in a sole name & there is a non borrowing occupier (NBO). Except where the occupier is:

  • Under the age of 17.
  • The child / stepchild of the borrower & aged 17 - 25 & in full time education at the time of application.

Independent legal advise is strongly recommended where there is an NBO residing in the property. Where independent legal advice is recommended and subsequently taken then that condition must be adhered to in all cases with a solicitor/conveyancer acting as a solicitor. This may incur a fee which is payable by the applicant.

Payment Holidays and Overpayments

Payment Holidays

If the customers has made overpayments, we offer the option of payment holidays, giving them a break from mortgage payments for up to three consecutive months.

Customers can take payment holidays once they have had their mortgage with Skipton for six months, but they will need to give the Society at least 14 days prior written notice. As long as the customer has had no arrears the holiday proposed would not take the LTV of their mortgage above 95%, and there are sufficient surplus payments to cover the holiday, the customer may take up to three consecutive months' holiday.

Customers cannot take more than a total of six months in any 12 month period. Whilst payments will not be made during the holiday, interest will continue to be added to the account causing the balance to increase.

Overpayments

By making overpayments the customer could be able to pay off their mortgage earlier than originally planned saving in interest. All of our mortgage deals allow customers to repay a fixed percentage of their original mortgage balance per year without charge.

Most of our mortgage deals include Early Repayment Charges (ERCs) if overpayments are made that are more than the set overpayment allowance on the product. Full details of this showing in the Mortgage Illustration and Mortgage Offer.

Porting

Existing customers who wish to port their current mortgage product can do so if the product is portable. They can “top up” with any product from the current product range, subject to meeting the product maximum LTV and other associated criteria and any fees will be payable i.e. £995 / £695. Or the porting / top up product can be used, subject to meeting the product maximum LTV and applicable completion fees will be payable.

Purpose of Loan

Acceptable Not Acceptable
Home Purchase Golden Hands
Family Discount Purchase Holiday Homes
Shared Equity (Lift Scheme) Self-Build / BuildStore (inc. A / Bs)
Right To Buy Short-term lending
Tenant Purchase Captial raising for business purposes
Shared Ownership
Purchase and Remortgage - owner/registered proprietor must have owned the property for a minimum 6 months ownership Builder's incentives where there is a part exchange property and the builder is paying above market value.
Buy To Let (BTL) Bridging finance
Transfer of Equity Help To Buy (Mortgage Guarantee - Scheme 2)
Second homes for personal or main residential use for dependant relative (maximum 75% LTV & income has to cover total debt i.e. existing & proposed mortgage debt.). Guarantors
Help To Buy (Shared Equity Loan - Scheme 1)

Repayment Methods

• Capital and Interest

• Endowment – Policies are not deposited or assigned

• Part and Part, restricted to 80% LTV and below, maximum term 25 years

• Interest Only is acceptable for mortgages and remortgages (except first time buyers) - refer to the Interest Only section.

Right to Buy

The Society will lend up to 100% of the discounted purchase price. LTV is restricted to product max and is calculated on open market value.

• Right to Buy notice must be obtained reflecting name(s) on mortgage application exactly.

• Additional funds can be raised for home improvements to 75% of the open market

    • Value (as confirmed by the Society’s valuer).

    • No capital raising for any other purpose is acceptable.

Right to Acquire

Where applicants have the right to acquire a property, applications will be considered and the above Right to Buy policy will apply.  Where sufficient evidence / documentation does not exist, applications will be declined.

Scottish Applications

Scottish cases should proceed on the same basis as normal considering the following:

Purchase Applications

A valuation will already have been completed.

New Build

Where are property is a new build, a transcript report is not acceptable. The Society will instruct a full standard report for which a fee may be payable to the Society by the applicants, this is dependant on the product selected. (Please refer to the new build section for the Societies definition of a New Build)

Remortgage and TSM Applications

Normal Valuation Rules apply.

Retentions

Where a retention has been help and the Society has a transcript valuation on file, in order to consider releasing the retention, the application may pay for a standard valuation.

Funds will then be release subject to lending criteria being met and satisfactory valuation being received.

LIFT scheme

The Shared Equity Loan Lift scheme is acceptable on houses only and the LIFT scheme acceptance letter is required.

LIFT scheme is not acceptable on new build properties, flats/maisonettes of any description and 1 bedroom properties.

Shared Ownership

Acceptable

Shared ownership applications are acceptable for residential lending in England and Wales with the borrower share of the property acceptable between a minium of 25% and a maximum of 75% based on the initial purchase price.

The Society will lend up to 90% LTV of the borrower's share of the property. Product restrictions apply. For new build houses & flats, the Society will lend up to 90% of the borrowers share.

Where financial incentives are provided, the incentive cannot exceed 5%.

Where financial incentives are provided on flats - the LTV will be capped at 85% and 90% respectively for houses.

Minimum loan £25,000. Maximum loan subject to usual loan and LTV maximum restrictions.

Maximum term 35 years. Age at end of the term must not exceed 75 years.

Maximum loan to income (LTI) - 4.5 (4.49 in London/South East).

Shared Ownership applications are only permitted on a capital and interest repayment basis only.

Maximum storey height/number of units in a development:

  • For properties built before 2008, 5 storeys/48 units
  • For properties built in 2008 or after, over 5 storeys/48 units is acceptable (subject to lift access and valuers comments).

Title restrictions on disposal (i.e. restrictive covenants/Section 106 agreements).

These are restrictions within the title to the property and must not be confused with standard restrictions within the acceptable shared ownership model lease.

For title restrictions, the Society will typically accept the following types:

  • salary/occupational restrictions
  • locality restrictions
  • a combination of the above

However, acceptance by the Society is subject to one (or more) of the following:

  • any restriction must only apply to the first transaction (i.e. the initial purchase transaction) and the restriction must not apply to any subsequent future transaction(s)
  • there must be a cascade mechanism in place that commences after a maximum of 3 months from the date of posession, with no restriction of any kind after 6 months from the date of possession
  • there must be a Mortgage Exclusion Clause in place in which applies immediately upon possession and will continue to be in force for successors in title to the mortgagee ensuring that all successors also take free from the relevant restrictions.

Any restrictions should be disclosed within the application to ensure the Society's valuer is fully informed in their assessment of the property.

Any clauses/restrictions other than those listed above will result in the application being declined.

We will not allow cases where the pre-emption rights survive 100% staircasing. This will be included within our instructions to conveyancers but not within our mortgage offer.

Landlord restrictions

The leaseholder must be regulated by the HCA and be either registered Housing Association or a registered provider appearing on the HCA register.

Please check the list of registered providers by visiting www.gov.uk/government/publications/current-registered-providers-of-social-housing.

In all instances the lease must adhere to the model produced by the HCA and incorporate a Mortgage Protection Clause.

Rent and service charge
Amount due must be declared on application and used in affordaibility assessment.

Lease
All Shared Ownership properties must be leasehold with a minimum unexpired term in line with existing SBS policy on leasehold property.

Staircasing
Borrowers must be permitted to staircase to 100% ownership under the terms of the lease. Staircasing must be conducted in minimum shares of 10% with prior approval from the scheme provider. Where 100% staircasing has taken place, standard remortgage products are used.

Additional Borrowing
Is only permissible for the purposes of staircasing where permission has been granted by the scheme provider. In all cases borrowers are required to maintain at least a 10% deposit against the market value of the property.

We may also consider additional borrowing for essential repairs to the property and where the lease term is being extended subject to permission being granted by the registered provider and confirmed in writing.

Staircasing involves the legal transfer of equitable title from the SO Provider to the customer which has legal formalities in order to be valid. Where additional borrowing monies are required on shared ownership for staircasing, a conveyancer (on Skipton's panel) will be required to ensure the purchase of the additional equitable title is legally sound. Any costs incurred are payable by the customer. Additional Borrowing Shared Ownership offers will be valid for 6 months.

Remortgages
Acceptable for any shared ownership property which meets our existing criteria. Remortgages must be on a like for like basis unless additional borrowing is sought for staircasing. In all instances the maximum LTV remains at 90%.

For TSM we may allow capital raising to buy out the interest of another party subject to approval from the registered provider in writing.

Skipton Home Conveyancing Service can be used for Shared Ownership. There may be a charge in relation to a Deed of Variation (if applicable).

Conveyancing
It is the duty of the conveyancer to ensure the lease meets the minimum requirements as set out in our Instruction to Conveyancers [pdf]. In all instances the lease must adhere to the minimum standards of the model lease produced by the HCA and incorporate a Mortgaee Protection Clause.

Valuations
AVM's are not acceptable.

Gifted deposit
Acceptable subject to prior consent from the Shared Ownership provider. Skipton will not accept a second charge registered against the property.

Contract variations
Rate switches are acceptable on specific shared ownership retention products. Any other contract variations will follow the standard process, aslong as prior approval has been obtained from the provider (if required).

Maximum exposure per development
In line with standard lending policy, maximum exposure in any development is 20%.

Offer validity
9+3 months for new build properties, otherwise 6 months

Registered provider exposure
Maximum exposure with any registered provider is 20%.

Letting
Not acceptable for Buy to Let. However, serving members of the British Armed Forces serving overseas or at a base further than 50 miles or 90 minutes travelling time automatically have the right to sub-let their shared ownership properties. We will require evidence of SO providers awareness/consent before we can process the Armed Forces Consent to Let.

Minimum submission requirements
Standard minimum submission documentation applies (see section A.0) with the addition that for purchase SO cases, a Memorandum of Sale is required.

Skipton Home Conveyancing Service

Remortgage Converyancing Service

If you're moving your mortgage to Skipton but not moving home, then you won't usually have to pay anything for the legal costs involved if you elect to use our Remortgage Conveyancing Service, depending on your chosen product. In other words, it's free to you, as we pay the standard legal costs within the service.

As well as this, we pride ourselves on having a well-established relationship with our recommended conveyancers who provide the legal work for our Conveyancing Service and this helps to make the process as hassle free as possible for you.

The remortgage work is undertaken by the conveyancers on a ‘reduced title check' basis which Skipton considers is sufficient to assess its security. If for any reason you wish the conveyancers to carry out a full title check on your behalf they can do so but any additional costs involved are payable by you.

For your peace of mind, experienced and well respected firms are currently used in the Skipton Remortgage Conveyancing Service. They are regulated by the Council for Licensed Conveyancers.

Fees

Please be aware that some legal work relating to matters not usually involved in a standard remortgage are not included in this offer e.g. transfers of equity or deeds of postponement. The solicitors will offer fixed prices for certain "elevated services". Please see our Elevated Service fees leaflets for further information.

In addition to this, if the loan is above £1,000,000 additional costs may be payable. Some payments to third parties may also still have to be paid and occasionally we may offer certain products with other benefits where we do not pay the legal costs.

If you're unsure as to whether additional costs may be involved in your mortgage, please speak to your mortgage advisor in the first instance.

If at any time your remortgage falls through, then you won't have to pay any standard legal fees, but fees which relate to matters not usually involved in a remortgage may still have to be paid.

Max Term

Normally up to 25 years, but up to 35 years can be considered on a repayment (capital & interest) basis only, except for applications where the LTV is over 90% where the term is restricted to a maximum of 30 years.

First time buyers must be on capital & interest with a maximum term of 35 years (30 years where LTV>90%).

Trust Arrangements

The Society does not accept Trust arrangements in favour of any person or body who is not a party to the mortgage.

TSM (Transfer Subject to Mortgage) Table

TSM policy relates to existing SBS borrowers only, where a request is made to either change the names on the existing mortgage (i.e. remove & / or add a name) and in some cases where also additional funds are requested to buy out a partner etc.

Acceptable Valuation Types:

  • LTV up to & including 60%: The Society will assess the case against the original file valuation (index linked).
  • LTV 61%-75%: An AVM is acceptable subject to standard AVM acceptable criteria
  • LTV over 75%: Up To Date report required. Where only an AVM is on file or if the valuation report on file is over 5 years old then a full standard report will be required.

Free Valuation/Free Legal Type Rules

A TSM application may not qualify for free valuation or free legal fees. The application will be processed as a remortgage purely as a result of internal system restrictions. Additional funds can be raised to pay ex-partner and this can be raised on the same product or any product from the current range. Normal lending criteria applies; cases outside of policy should be referred to the MSC for consideration by a Lending Manager. Justification and evidence of affordability must be obtained prior to referral.

If the application does not qualify for free legal fees the customer can choose to use Skipton Home Conveyancing Scheme (SHCS) and pay the fees. We will debit the fees for the standard legal work to the mortgage account on completion and the elevated service part will be invoiced by CDPL to the customer directly. The advantage to the customer is that the fee for the standard legal work is very competitive, although it is important to note that the fees may differ dependent on area, i.e. England, Scotland etc

Property

Acceptable / Not Acceptable

Acceptable Not Acceptable
New build House for residential purposes acceptable, providing build is completed within 12 months of SBS 1st mortgage offer. Subject to meeting this requirement properties bought off plan are acceptable (New Residential Only) Grade A / Grade 1 Listed properties
Remortgaging (proof from Land Registry is obtained confirming property already owned by applicant(s) for 6 months) Any Security affected by any invasive plant species e.g. Knotweed categories 3 & 4
Repossessions Split Titles
Properties affected by Japanese Knotweed, categories 1 & 2 only. Subject to a satisfactory valuation

The property must be;

  • Of a traditional construction, as defined by the Society’s panel valuer
  • In a satisfactory condition
  • Of a suitable type
  • Be recommended by the Society's panel valuer

Maximum exposure in any development is 20%

Applications for properties with self-contained annexes will be referred to the MSC for assessment

Flats - Residential

Flats are acceptable for residential purposes in the following instances:

  • New Build flats or Flat Conversions must not exceed a max of 90% LTV
  • Non Ex-Local Authority flats. Where number of floors exceeds 5 access to a lift is required
  • Flats above commercial (inc Retail) outlets must not exceed a max of 85% LTV and a min property value of £200,000 applies
  • Deck Access and Mezzanine flats. Minimum property value of £250,000 applies
  • Studio Flats - minimum property value of £250,000 applies and a minimum floor space requirement of 35 square metres.
  • Ex-Local Authority flats are acceptable where number of floors does not exceed 5 and number of units do not exceed 48 (regardless of whether access to a lift is available).
  • One bedroom flats with a minimum floor space requirement of 35 square metres.

The property must be;

  • Of traditional construction, as defined by the Society's panel valuer
  • In satisfactory condition
  • Be recommended by the Society's panel valuer

Flats Above Commercial/Retail Outlets

A standard valuation will be carried out and the decision to lend will be made on whether the valuer recommends we proceed. The recommendation will be subject to the valuer believing the property is suitable security for a mortgage and will be easily re-saleable. The valuer's decision is final: no challenges will be accepted, and no refunds of valuations fees will be issued if the decision is a decline.

Freehold Flats

Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside flats where there are reciprocating lease / freehold arrangements are also acceptable.

Maximum Loan To Values
Loan Amount Max LTV
up to £450,000 95%*
£450,001 - £500,000 90%
£500,001 - £625,000 85%
£625,001 - £750,000 80%
above £750,000 75%

*95% LTV available for all residential purchase business only (not available for remortgages). In addition to the following lending types are limited to 90% LTV: Shared Ownership/Help to Buy/Right to Buy/New Build/LIFT.

The total balance of the new application and all other existing Residential mortgage accounts with Skipton Building Society should not exceed £1 million. Aggregate balances exceeding £1 million must be reviewed by the appropriate mandate holder under the existing mandate structure.

New Build
Please see New Build policy category for specific policy requirements.
Property Types

Precast reinforced concrete (PRC) DWELLINGS (Houses only)

PRC properties that have been repaired under a PRC Homes Ltd. licensed repair scheme are acceptable provided the valuer confirms that the property is suitable for mortgage purposes. The valuer should identify the property type and the conveyancer should obtain confirmation that the property has been repaired using a PRC Homes Ltd licensed repair scheme.

PRC properties that have been repaired by a local authority but not under an official PRC Homes Ltd licensed repair scheme are acceptable provided that the repair is in accordance with such a scheme and the valuer has confirmed that the property is suitable for mortgage purposes. The valuer should identify the property type, and suitable documentation must be obtained by the conveyancer confirming that the property has been repaired to the standard of a PRC Homes Ltd scheme. This documentation is essential as it is impossible for the valuer to know merely from an inspection exactly what repair work has been undertaken to the structure. If no documentation is available, the case is not acceptable unless the property is inspected by a structural engineer who confirms that the repair that has been undertaken is equivalent to PRC licensed standards. (A 10 year warranty without proof of the type of repair work undertaken is insufficient)

PRC properties repaired under NTHAS (non traditional homes appraisal scheme) (Non Traditional Homes Appraisal Scheme) are acceptable if they have been repaired to a minimum grade 3 standard and provided the adjoining semi detached house (or all the properties in a terrace which contain the subject property) have been repaired and the valuer has confirmed that the property is suitable for mortgage purposes. The standard of repair must be confirmed by documentation provided to the conveyancer as it is impossible for the valuer to know merely from an inspection exactly what structural repair work has been undertaken.

The above criteria does not apply to newly built blocks of flats.

No-fines Construction

Wimpey no-fines construction and Laing Easiform construction (built post 1945) are generally acceptable and in each case suitability for lending purposes will be dependent on the valuer’s comments.

Steel Frame Construction

Skipton does not generally accept steel frame dwellings unless a structural engineer's report (of the steel frame) is obtained and all recommended work within that report is carried out and the mortgage valuer confirms that the property is suitable for mortgage purposes. (A structural engineer's report is essential as a valuer is not able to ascertain the condition of the steel framework merely by carrying out a mortgage valuation)

The above criteria does not apply to newly built blocks of flats. Please refer to the full Residential Criteria for more information.

Timber Frame dwellings

Timber frame dwellings built prior to 1965 are unacceptable with the exception of listed Tudor buildings.

Large Panel Systems (LPS)

Skipton does not lend on properties of this type of construction.

Space4 System

Space4 is a designated Modern Method of Construction (MMC).  The system is effectively a development of modern timber frame. The structural timber frame is bonded to a cementitious particle board (instead of a wooden board in timber frame) and phenolic insulation is inserted between the timber studs to provide the necessary thermal insulation to the wall element. Suitable breather barriers are also used to control the passage of moisture through the wall element. This structural element is separated from the outer face of the wall (non-load bearing, purely cosmetic and usually either brick or rendered block) by a cavity.

Space 4 is generally acceptable and in each case suitability for lending purposes dependant on valuers comments.

Flat roof

The Society will not normally consider lending on properties with 100% flat roofs, but cases may be acceptable subject to underwriter assessment and the valuer’s comments.

Single Skin Construction

The Society will only allow a small portion of the property to be constructed of single skin which must only be one storey in height and subject to satisfactory comments from the valuer.

Modern Moduler Steel Frame with Brick Extension

The Society may be willing to lend subject to valuer's comments.

Mundic Block

Properties in areas where "mundic" is a known problem (properties build from concrete blocks laid onto mass concrete foundations) must be subject to a screening test in line with RICS guidance. A result of Class A1, A2 or A3 is required for a property to be considered acceptable.

Rent A Room Scheme / Air BnB

This is acceptable, providing there is no formal tenancy agreement in place. We cannot use the income received from this. We have to be sure that the applicant is living in the property and that no more than one room in the house is rented out on this basis.

The Society will not consider any applications where any element of our security address is let out via Air BnB and/or similar schemes.

Solar Panels

The Society does not apply any restrictions in relation to solar panels where the applicant(s) is funding the purchase of panels themselves or via additional borrowing, providing they are doing so with no creation of any long term lease arrangement with the panel provider.

Where the solar panel provider is creating a lease the maximum LTV is 50% and the property value must be a minimum of £100,000.

In order for the application to be considered the borrower must provide the Society (prior to submitting a DIP) with the following satisfactory documents:

  • a signed CML Template Letter from the provider
  • a copy of the written report from a Chartered Building Surveyor or Structural Engineer
  • a copy of the providers Microgeneration Certificate

A condition will be attached to the offer of advance that lending is subject to the appropriate planning permission and consents being in place.

Tenure

All flats and maisonettes must be leasehold (feuhold in Scotland) with a minimum unexpired term of 85 on completion of the mortgage.

Leasehold flats where the borrower will also own a share in a management company that owns the freehold are acceptable.

Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside flats where there are reciprocating lease / freehold arrangements are also acceptable.

Commonhold properties are not acceptable to lend on, by the Society.

Valuation Fee Scale

View our current Valuation Fee Scale for full details.

Valuation Process
Up to & including 60% LTV 60.01% - 75% LTV Over 75% LTV
Purchase Standard Report Standard Report Standard Report
Remortgage AVM Report ** AVM Report ** Standard Report
Buy to Let (BTL) Standard Report Standard Report Standard Report
Additional Loan -; Residential SBS to assess original valuation AVM Report ** Up to Date Report*
Additional Loan - Buy to Let Up to Date Report* Up to Date Report* Up to Date Report*
Transfer Subject to Mortgage TSM SBS to assess original valuation AVM Report ** Up to Date Report*
Minimum Balance - raising additional funds SBS to assess original valuation AVM Report ** Up to Date Report*

* Subject to the latest valuation report on file dated within the last 5 years, being either a standard report or an up to date report. If only an AVM on file then a new standard report must be requested (Valuers will not carry out an up to date report in the above scenarios).

**AVM Policy Criteria
  • Up to 75% LTV for remortgages, additional borrowing, TSMs and MIN01 applications
  • Confidence factors accepted A-C only
  • Maximum property value £750,000
  • Not used for non-standard construction properties, new build or high rise blocks of flats, rural property, Buy To Let (BTL), Northern Ireland or where there is no comparable data.

Homebuyer Reports and Building Survey Reports

If the Applicants request a more detailed inspection i.e. a Homebuyers or Buildings survey, Skipton can instruct this, however the contract is between the applicant and the valuer and the report will be sent direct to the applicant once the applicants have signed the terms and conditions sent to them by the valuer.

Scottish Applications – Valuation Reports

Purchase Applications - Transcript Valuations

A valuation will already have been completed on Scottish Purchases. The MSC should, in all cases, request a Transcript of this valuation onto a SBS Headed Standard Valuation Report and remove any valuation fees from Checkmate fee record screen.

Transcripts where the valuer is not already on SBS panel

Obtaining a transcript of the valuation is subject to the following:

  • The valuer providing the transcript must be the valuer who prepared the original home report, and must be on the Society’s current panel of valuers
  • The inspection for the original report must have taken place no more than 9 months ago
  • Valuation figure must be no more than 90 days old
  • Where the valuation is a refresh of the original home report, it must be based on an internal/external inspection that has taken place within the last 90 days

Valuers unable to comply with the above – a new standard report must be requested for which the fee as per SBS valuation fee scale will be payable by the applicants (dependent on the product selected).

Remortgage and TSM Applications

Valuations: Normal valuation rules apply