HPP Criteria Guide

Secured arrears or missed payments

• 1 missed payment in 36 months.
• 0 in last 6 months.

Zero hours

• We can accept zero hour contract income where it is not the primary income source on an application, and the applicant has been employed on a zero hour contract within the same industry for at least 12 months. 

Second Job

• We can consider 100% of this income and if PAYE, our customer must have been working their primary job and second job for 6 months. We will need the latest P60 & 3 most recent payslips.

Unsecured arrears or missed payments

• Worst status of 2 in last 24 months.
• We ignore communications up to £250.

Right to buy

• Not accepted.

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Retentions

• Not allowed - unless the property is a new build under construction, whereby the valuer will note within the valuation report, a retention amount equal to the ‘finished basis’ value.

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Residency

• All applicants must have been a UK resident for the last 2 years.
  
  For a joint application where 1 applicant hasn’t been resident for the required time, the application may still be considered with additional criteria.

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Remortgage / refinance

• Accepted where the property was last purchased or remortgaged at least 6 months ago (unless remortgaging out of bridge financing). 

Property Use

• The property must be used by the customer for their own occupation. No commercial use is allowed (work from a home office / study is not considered commercial use).

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Proof of income: other sources 

• Child benefit: Most recent award letter and most recent bank statement showing the credit.
• Working or Child Tax Credits: Most recent award letter and most recent bank statement showing the credit.
• Maintenance: A copy of the maintenance agreement, received under a Court Order and latest bank statement showing the credit. 
• Pension income: Most recent pension statement (dated within last 12 months) and latest bank statement showing the pension credit.
• Universal credit: Most recent award letter and most recent bank statement showing the credit.
• State disability allowances: Latest benefits statement and latest bank statement showing the credit.
• Carers Allowance: Latest award notice.
• Widowed parents attendance: Latest award notice.
• Employment and support allowance: Latest award notice.

Proof of income: self-employed

• Most recent years income accepted if trading for more than 2 years
• SA302 for the last 2 years, together with the Tax Year Overview (or 1 year if trading for less than 2 years) and 6 months business bank statements.
• Where 2 years’ SA302/Tax Year Overviews cannot be provided, other sources to evidence stability of income can be considered, subject to underwriter discretion.

Proof of income: employed

• Latest P60, 3 most recent payslips, latest bank statement showing the salary credit.
• If the applicant has just started their new role, and no payslips are available, we will accept a copy of the contract confirming the level of salary, and in addition, we will need the last 3 payslips from their previous role.

Porting

• StrideUp products are not portable.

Overseas deposits

• Deposits from overseas accounts can be considered.

Payday loans

• 1 not exceeding £300 in 36 months.
• 0 in last 12 months.

Minimum value

• £85,000

Minimum unexpired lease

• 85 years must be remaining on the lease at the date of application.

Minimum term

• 10 years.

Minimum income

• There is no restriction on minimum income.

Minimum financing

• £50,000.

Maximum FTV (LTV)

• 90% FTV for all acceptable financing amounts. See product guide for latest availability of FTV which may be lower than this limit.
• For new build houses the maximum is 85% and for new build flats the maximum is 80%.

Minimum age

• 21 years

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Maximum value

• Uncapped

Maximum term

• 40 years.

Maximum age

• Not to exceed the 75th birthday at the end of the term based on the eldest applicant (whose income is used for affordability).

Maximum financing

• £1,500,000 up to 70% FTV (LTV)
• £1,000,000 up to 80% FTV (LTV)
• £750,000 up to 90% FTV (LTV)

Acceptable income sources

We can consider up to 100% of the following income sources:

• PAYE Income
• Car allowance
• London / regional weighting
• Special duties allowance
• Travel allowance
• Unsocial hours payment
• Second job income
• Contract income 
• Pension income
• Rental income
• Maintenance payments
• Child / working tax credits
• Child benefit
• Carer’s allowance (including foster allowance)
• Widowed parents Attendance, 
• Employment & support Allowance
• Universal Credit
• Incapacity allowance
• Industrial injuries disablement benefit
• Disability living allowance
• Personal independence payment
• Armed forces compensation scheme
• Armed forces independence scheme
• Overtime

We can consider a portion of:

• Bonus (50%)
• Commission (66%)

Maximum applicants

• 4 applicants

Location

• England only.

Marital status

• We can consider a sole application even if the applicant is in a legally sanctioned relationship, for both purchases and refinances (an ILA may be required).

Financing into retirement

• We can consider applications where the term is due to expire beyond age 70 to (max) age 75 years. Where retirement is less than 10 years away, affordability will be assessed considering the anticipated retirement income.

Lending into retirement

• <10 years away from retirement age: if pension income is to be used for affordability, we will need to see the latest pension statement which will show a forecast of the pension amount.
• >10 years away from retirement age: evidence of contributions into a pension fund (including sale of other property and/or buy to let rental income) must be provided and will be reviewed on a proportionate basis.

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Gifted deposit

• 100% gifted deposit acceptable, from any number of sources.
• We can consider gifted deposits outside of close family members.

HM Armed Forces

• Members of the British armed forces stationed overseas will be considered.

Guarantors

• Guarantors are not considered.

Foreign nationals

We can accept foreign national applicants if they have permanent rights to reside or are on a visa with at least 1 year remaining. (Residency criteria applies).

Foreign currency income

• Not accepted

Expenditure

• Latest 3 months’ bank statements. Further statements may be requested at underwriter discretion.

First time buyers

• Allowed

Evidence of deposit

• Savings from income: latest 6 months’ bank statements.
• Sale of current home: Memorandum of Sale together with redemption statement from current lender.
• Gift: gifted deposit form from each donor.

Proof of income: employed

• Latest P60, 3 most recent payslips, latest bank statement showing the salary credit.

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If the applicant has just started their new role, and no payslips are available, we will accept a copy of the contract confirming the salary, will need the last 3 payslips from their previous role

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Proof of income: self-employed

• Most recent years income accepted if trading for more than 2 years
• SA302 for the last 2 years, together with the Tax Year Overview (or 1 year if trading for less than 2 years) and 3 months business bank statements.
• Where 2 years’ SA302/Tax Year Overviews cannot be provided, other sources to evidence stability of income can be considered, subject to underwriter discretion.

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Proof of income: other sources 

• Child benefit: Most recent award letter and most recent bank statement showing the credit.
• Working or Child Tax Credits: Most recent award letter and most recent bank statement showing the credit.
• Maintenance: A copy of the maintenance agreement, received under a Court Order and latest bank statement showing the credit. 
• Pension income: Most recent pension statement (dated within last 12 months) and latest bank statement showing the pension credit.
• Universal credit: Most recent award letter and most recent bank statement showing the credit.
• State disability allowances: Latest benefits statement and latest bank statement showing the credit.
• Carers Allowance: Latest award notice.
• Widowed parents attendance: Latest award notice.
• Employment and support allowance: Latest award notice.

Contractor

We are flexible on how we look at contractors, and realise one size does not fit all:

• First time contracting - If less than 6 months to run on the contract, we need confirmation the applicant has been previously employed for 24 months in the same line of work 
• Single contract - 3 month history of contracting is required, with a minimum 12 months history in the same industry (unless first time contracting).  There must be a minimum of 3 months remaining on the contract.  However, we will accept confirmation of the renewal from the employer if the next contract is not yet available. 
• If customer has multiple contracts - We will treat them as Sole Traders, Ltd Co Director and will request the same evidence as detailed above
• Umbrella Company - We treat contractors that are paid via an Umbrella Company, which pays tax & NI for our customer, as PAYE employed customers, so we will be looking for the latest P60 & latest 3 payslips
• Medical professionals - Whether they work under one or multiple Trusts, we will treat them as a single contractor rather than looking at the SA302s for evidence. Day rates can be considered

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Second Job

• We can consider 100% of this income and if PAYE, our customer must have been working their primary job and second job for 6 months. We will need the latest P60 & 3 most recent payslips

Evidence of deposit

• Savings from income: latest 6 months’ bank statements.
• Sale of current home: Memorandum of Sale together with redemption statement from current lender.
• Gift: gifted deposit form from each donor.

Expenditure

• Latest 3 months’ bank statements.

Lending into retirement

• <10 years away from retirement age: if pension income is to be used for affordability, we will need to see the latest pension statement which will show a forecast of the pension amount.
• >10 years away from retirement age: evidence of contributions into a pension fund (including sale of other property and/or buy to let rental income) must be provided and will be reviewed on a proportionate basis.

Employed

• A minimum of 3 months employment history is required, which can include both current and previous roles where there are no gaps in employment.
• We can consider applicants during their probationary period and who have been employed in their current job for less than 3 months (excluding zero hours contracts).

Crown employees

• Crown employees, including members of the diplomatic service working overseas will be considered as a UK resident.

Debt management plan

• Must have been satisfied at least 24 months before and should not relate to a credit event in the previous 60 months.

Defaults

• 0 in 36 months (none unsatisfied).
  We ignore communications up to £250.

Contractor

• We can accept contractors with:
  a.  at least 3 months’ contracting history;
  b. 12 months’ history within the same line of work; and
• c. 3 months’ remaining on the contract (or confirmation of renewal).
  
  If it is the applicant’s first contract and there’s less than 6 months to run, the applicant must have been employed for at least 24 months in the same line of work. Other than medical professionals, applicants with multiple contracts will be considered on a self-employed basis.

Capital raising remortgage / refinance

• Accepted.

CCJs

• 0 in 36 months (none outstanding).

Builder’s deposit

• We can accept builder’s deposit / incentives up to 5%.