Coventry Mortgage Lending criteria

Advances
Upto £500,000 60% LTV
Upto £1,000,000 50% LTV

Notes
Mortgage is Portable, Mortgage is Flexible, Overpayments allowed.
The product(s) selected are fully portable. Please refer to our 'Moving your Mortgage to a New Property' brochure for further information.
- Mortgage is NOT for First time buyers
Applications to re-mortgage a main residence to a Buy to Let basis are not allowed

Please note that this product is offered by Godiva Mortgages Limited and not Coventry Building Society. You will not obtain membership rights in Coventry Building Society by taking a loan or mortgage from Godiva Mortgages Limited.
- The lender operates a restricted panel of intermediaries. If an Intermediary wishes to join this panel, please contact the Intermediary Sales Office on 0845 757 3612.
A maximum term of 40 years is only available on mortgages backed by a pension, PEP or ISA.
A maximum term of 35 years is available for all other acceptable repayment methods.
Customers will be asked how they intend to pay off the loan if the term will take them past the age of 65.

Payment Holidays Allowed. The Company may allow you to take up to 3 months payment break during any financial year of the Company (i.e. the 12 months ending on 31st December in any year), providing the first 6 monthly payments on the mortgage have been made and the account is not in arrears. Debit interest will continue to be added to the mortgage on the first day of the month and will form part of the mortgage balance upon which monthly interest will be calculated. To request a payment holiday, you must give the Company at least five days notice. It is entirely up to the Company whether to grant your request or not.

The mortgage valuation is waived up to a maximum amount of £680 if the Lender instructs the valuer. In some instances different valuation assessments may be under taken. If applicable the actual fee you will pay is shown in section 8.

For this mortgage, there are no restrictions on the amount that can be overpaid on this mortgage. Any overpayment using the direct debit overpayment facility will be applied to the mortgage immediately and interest recalculated. You will be advised of your revised monthly repayment if applicable.

Please note that this product is offered by Godiva Mortgages Limited and not Coventry Building Society. You will not obtain membership rights in Coventry Building Society by taking a loan or mortgage from Godiva.

Buy to Let : Accepted, Max properties 10
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment Yes

Fees
Arrangement : £1000 Can be Added
Booking : £250 Upfront

Early Repayment Charges
None

Higher Lending
None

Valuation
Basic:
Free
Homebuyers:
upto £75,000 - £230
upto £100,000 - £280
upto £150,000 - £330
upto £250,000 - £410
upto £300,000 - £510
upto £400,000 - £610
upto £450,000 - £655
upto £500,000 - £705
upto £600,000 - £805
upto £700,000 - £905
upto £800,000 - £1005
upto £900,000 - £1105
upto £1,000,000 - £1205
upto £1,200,000 - £1410
upto £1,400,000 - £1610
upto £1,600,000 - £1810
upto £1,800,000 - £2005
upto £2,000,000 - £2210
upto £2,200,000 - £2410
upto £2,400,000 - £2610
upto £2,600,000 - £2810
upto £2,800,000 - £3010
upto £3,000,000 - £3210
upto £3,200,000 - £3405
upto £3,400,000 - £3610
upto £3,600,000 - £3810
upto £3,800,000 - £4010
upto £4,000,000 - £4210
upto £4,200,000 - £4410
upto £4,400,000 - £4605
upto £4,600,000 - £4810
upto £4,800,000 - £5010
upto £5,000,000 - £5210
upto £5,500,000 - £5560
upto £6,000,000 - £5910
upto £6,500,000 - £6255
upto £7,000,000 - £6610
upto £7,500,000 - £6955
upto £8,000,000 - £7310
upto £8,500,000 - £7655
upto £9,000,000 - £8010
upto £9,500,000 - £8355
upto £10,000,000 - £8710

Arrangement fee can be added to the loan.(Non-refundable)
Booking fee is payable up front.(Non-refundable)
One mortgage valuation up to the max £680, additional fees above this rate will be reduced
Only valuations conducted by the Godiva Mortgages Ltd's panel of valuers are acceptable.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lenders Conveyancing Fee - £177.43 Payable on completion. Legal and disbursement fees (payable to legal representative for searches and disbursements involved in completing your mortgage.) This is an estimate, and will only be part of the legal costs incurred.
Telegraphic Transfer - £35.00 Payable on completion.
Redemption Fee - £125.00 Payable on early redemption.

Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat No
Flying Freehold Yes
Thatched Yes
Timber Framed Yes
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Not Accepted
New Build acceptable.
Ex-local authority flats and maisonettes are restricted to 70% LTV.

Will not lend on Freehold flats or Maisonettes.

Flats over certain types of commercial properties are restricted to 75% LTV.

Flats with more than 5 storeys are not considered, if they are ex local authority, or do not have lift access.

Flats with more than 10 storeys are not considered.
All property, flying freehold not to exceed 25% of the total property.

Timber properties are not normally acceptable but Godiva Mortgages Ltd will consider modern timber framed properties provided they have an outer skin of brickwork.

Steel Frame houses and all types of property <10 years with no NHBC or equivalent properties are not accepted.

Houses with 2 Kitchens and houses with no bathroom are not accepted.

The Godiva Mortgages Ltd will not lend in Isle of Man, Channel Island, Scottish Isles. Except Isle of Skye

For purchase applications, the vendor must have owned the property for a minimum of 6 months.

The maximum loan to value for a * new build/converted apartment is 50% LTV

We define new build as properties that have been built within three years of the mortgage application or are properties to be occupied for the first time. This includes flat conversions where the number of flats in the development exceeds 10.

Applications cannot be considered where the property offered as security is a self-build property or a self-build conversion, where the construction or conversion of the property is not fully completed at the time of application.

We will not lend to flats above or adjacent to workshops, restaurants, take-aways, public houses, sex shops, massage parlours and premises that stock explosive or toxic materials (fireworks, dangerous chemicals etc).
We will not lend to flats above or adjacent to void/empty premises.
* 'adjacent to' includes properties within an 'influential' distance. This will be determined by the valuer.

Purchase applications are only allowed where upon completion the purchaser will obtain vacant possession of the property.
The property may normally be let to individuals on an assured shorthold tenancy basis or to companies on a corporate let, for a minimum term of 6 months and a maximum term of 12 months
For unencumbered or where there is less than £5,000 outstanding on the current mortgage the maximum LTV is limited to 50%

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements
Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan £25,001
Max Loan £1,000,000
Max Portfolio of BTL Loans £1,000,000
Min Age 21 years
Max Age 75 years
Min Term 1 years
Max Term 35 years
Please note that Godiva products cannot be submitted using a Coventry Application form.
The maximum number of applicants is 4.
Refer to the Lender for Directors' requirements.
Cases outside lending policy are judged on their own merits and so for cases that require an amount of income discretion, please refer to lender.
For loans above 65% LTV employed applicants must have been in continuous employment for at least three months prior to the application.
Employment and income checks may be required, dependant on you client's credit history.
Buy To Let Applicants must be aged 21 for the first applicant on a joint mortgage and a maximum of 75 at the end of the mortgage.
Buy To Let not available to first time buyers.
Buy To Let Total loans in mortgage to lender maximum £1,000,000 to any single borrower.
Buy To Let Properties to be let to individuals on an assured shorthold tenancy basis or to companies on a corporate let.
Panel Solicitors only.
Maximum number of properties that can be held with all lenders is 10.

Lending to replace development finance is not acceptable.

Mortgages 75% LTV or below are eligible for Interest Only mortgages, any element of the mortgage that exceed 75% LTV must be on a repayment basis.

All self-employed applicants must be able to provide the latest 1 year's accounts.

Self employed references only acceptable from the following accountancy bodies
Institute of Chartered Accountants (ICA)
Institute of Chartered Accountants (ICA)
Association of Chartered Certified Accountants (ACCA)
Chartered Institute of Management Accountants (CIMA)
Institute of Financial Accountants (IFA)
Where the applicant is a director for limited company the following should be provided:-
Last year's accounts
or
where the applicant is not a 100% shareholder, an Accountants Certificate is required to confirm the applicants share of the Net profit.

Gross annual income is Net profit (the applicants share of Net profit for partnerships) of the company plus salary
Directors of limited companies who have less than a 33% shareholding are treated as employed applicants.
Only applies to limited company directors with a 33% or more share in the company. The salary must have been deducted before arriving at Net profit.

Applications from applicants wishing to purchase properties in their own name for owner-occupation or Buy to Let purposes, from a limited company or a Limited Liability Partnership in which they have an interest is not acceptable.

For First Time Buyer specific schemes the following rule now applies:- continuous employment for at least 1 year prior to application (in a joint mortgage situation, both applicants must have been in continuous employment for at least 1 year where both applicant’s income is being used to calculate admissible income)

Employed applicants (includes Directors with less than 33% shares in the company they work for)
Employed applicants must have been in continuous employment for the last 12 months. A break of 3 months between positions is acceptable, however no more than one 3 month break in the last 12 months is acceptable.

Non EEA Nationals
New customers - Lending to applicants without indefinite leave to live and work in the UK is not allowed and this applies to applications in a single name and to applications in joint names where either applicant does not have indefinite right to live and work in the UK.

The property must be insured by you in accordance with the conditions of this mortgage, The level of buildings cover must be no less than the rebuilding cost of the property.
Foreign Citizens Refer
Ex-Patriates Not Accepted

Income Multipliers
Based on Income > 0
Refer to rental income calculations

Min months in current position 1
Min months in continuous service 3
Min no. of years accounts 1
Average years taken to calculate income 1
Will consider declining profit Refer

Outgoings
Applicants must be employed or self-employed with a Net minimum income of £25,000. In the case of joint applications the main earner must have a Net income of at least £25,000.

The main income earner must be in a continuous permanent position for at least the last 3 months prior to application.

Net income is defined as annual income before tax minus a deduction for ongoing unsecured financial liabilities.

The minimum rental income required from the property is 125% of the monthly mortgage interest.
Self employed borrowers;

Directors

A director will be considered self-employed if they have a 20% shareholding or more in their company.
Personal bank statements are required where proof of income is more than 12 months old.
 
Sole traders, partnerships and contractors

Tax Assessments (SA302s) are required for proof of income. Bank statements showing income received are required where the Tax Assessments (SA302s) are older than 12 months.

Self employed references only acceptable from the following accountancy bodies
Association of Authorised Public Accountants (APA)
Chartered Institute of Public Finance & Accountancy (CIPFA)
Chartered Institute of Taxation (CIOT)
Institute of Chartered Accountants (ICA)
Association of Chartered Certified Accountants (ACCA)
Chartered Institute of Management Accountants (CIMA)
Institute of Financial Accountants (IFA)

Unacceptable sources of income

Income from temporary employment
Child/working family tax credits
Disability allowances
All other state benefits
Maintenance (including court ordered)
Bursaries and other educational subsidies
Foster income
Rental income where it is secondary income, expect where the applicant can confirm that the income is derived from a business, can provide 2 years accounts (1 year Buy to Lets) or two SA302s and meet all other self employed criteria

Please note that this list is not exhaustive and any similar income source may be declined.

Applicants can be employed (min 3 months) / Self employed (min 1 year) or Retired with a Private pension.

Retired Applicants 100% of state and private pension may be used when calculating admissible income. Total admissible income is made up of total gross income minus a deduction for ongoing liabilities.

Documents required for validation:
Private Pension
- At least 2 months bank statements
- Latest pension slip
- Latest annual statement from the pension provider
State Pension
- Latest 2 months bank statements
- Latest annual letter from the Department for Work and Pensions
-Copies of the front and first two inside pages of the applicants pension book.

Total gross income is made up of:

Basic salary.
100% of gross guaranteed overtime, bonuses (excluding annual bonuses) or shift allowance.
100% of annual non-pensionable allowances forming an integral part of the remuneration package e.g. London weighting allowance. Please note that expenses such as mileage payments, meal allowances etc., are not acceptable.
Up to 50% of regular overtime, bonuses (excluding annual bonuses), shift allowance or commission.

Mininum Income £25000
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular Add 50% to income before multiply
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments No
Non Contributory Pension Add 100% to income before multiply
Car Allowance No

Remortgage Max LTV Max% increase

Remortgage Not Available

Adverse Credit
CCJs/Defaults : Accept:
1) Max £250.00 in Defaults unsatisfied. There must be no Defaultss in the last 6 months. This condition does not incur any rate loading.
2) Max £250.00 in CCJs unsatisfied. There must be no CCJss in the last 6 months. This condition does not incur any rate loading.
Arrears : Accept:
1) Max 1 missed payment in the last 36 months, which may be unpaid at the time of application. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
Repossessions : Not accepted.

CCJs over 3 years old considered on an individual basis.
Defaults on Mortgages and secured loans must be satisfied
Defaults over 3 years old, less than £1500 satisfied or not considered on an individual basis.
IVA and Bankruptcy not acceptable for FTB



back to buy to let best buys