Standard Criteria
23/08/2017
The Society will consider residential applications where there is historic adverse Credit/CCJ/IVA/Bankruptcy/Debt Management Plan/Debt Relief Order where these were settled more than four years ago and repossession where settled more than 6 years ago*.
In addition, the following criteria regarding an applicant’s credit history will be considered:
| Existing Homeowners Excluding Self Build applications – no missed mortgage payments in the last 2 years | Existing Homeowners Excluding Self Build applications – have missed a mortgage payment in the last 2 years | First Time Buyers/Self Build | |
|---|---|---|---|
| Unsatisfied CCJs | Not acceptable | Not acceptable | Not acceptable |
| Satisfied CCJs | Total must not exceed £1,000 and they must have been satisfied for more than 3 years | Total must not exceed £500 and they must have been satisfied for more than 3 years | Total must not exceed £500 and they must have been satisfied for more than 3 years |
| Unsatisfied Defaults | Not acceptable | Not acceptable | Not acceptable |
| Satisfied Defaults | Total must not exceed £1,000 and they must have been satisfied for more than 3 years | Not acceptable except defaults with communications suppliers which have been satisfied may be disregarded at the discretion of the mandator | Not acceptable except defaults with communications suppliers which have been satisfied may be disregarded at the discretion of the mandator |
| Missed payments on unsecured commitments, credit card, mail order, communications supplier or similar | Max worst status of 1 on current active CAIS in the last 6 months and a max status 2 in the last 2 years | Max worst status of 1 on current active CAIS in the last 6 months and a max status 2 in the last 2 years | Max worst status of 1 on current active CAIS in the last 6 months and a max status 2 in the last 2 years |
| Secured Arrears (mortgage and loans) | No other credit issues, must be status 0 on current active CAIS for the most recent 6 months, max of 3 status 1 in last 2 years, max worst status 2 in last 2 years | No other credit issues, must be status 0 on current active CAIS for the most recent 6 months, max of 3 status 1 in last 2 years, max worst status 2 in last 2 years | No other credit issues, must be status 0 on current active CAIS for the most recent 6 months, max of 3 status 1 in last 2 years, max worst status 2 in last 2 years |
Where there has been a deliquency, as defined by Experian at any point in the last 3 years, this will not be considered by the Society
* Buy to let applications will not be considered if there is any form of impaired credit as per the regulatory definition as detailed below
Impaired Credit History – Regulatory Definition
Under regulatory rules borrowers with an impaired credit history are those who meet any one of the following conditions:
- Arrears on a previous (or current) mortgage or other secured loan within the last two years, where the cumulative amount overdue at any point reached three or more monthly payments;
- Arrears on a previous (or current) unsecured loan within the last two years, where the cumulative amount overdue at any point reached three or more monthly payments;
- One or more county court judgement (CCJs), with a total value greater than £500, within the last three years;
- Being subject to an Individual Voluntary Arrangement (IVA) within the last three years;
- Being subject to a bankruptcy order at any time within the last three years.