Criteria guide

Houses, flats, blocks of flats, multiple units on one freehold, new-build (up to 80% LTV), converted during past two years (up to 80% LTV) are all acceptable.

Multiple units must all be individually marketable and mortgageable for us to consider lending against the sum of individual values, otherwise lending may be based on the lower of vacant possession value (VP), investment value or purchase price.

Accepted accountant’s qualifications:

• Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified
• Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified
• Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified
• Association of Authorised Public Accountants (AAPA): AAPA qualified
• Chartered Institute of Taxation (CIOT): CTA qualified
• Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified
• Association of International Accountants (AIA): AIA/FAIA qualified
• Institute of Financial Accountants (IFA): FFA/AFA qualified.

Director’s salary and dividends must be declared for the last three years. Retained profit isn’t taken into account.

Net profit before tax based on accounts for the last three years for sole traders and partnerships must be declared

^*Where all CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application;

• Where all CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration;
• Where the CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and satisfied prior to mortgage application.

Individual Voluntary Agreement (IVA), Bankruptcy and Debt Management Plans (DMP) are not acceptable.

Repossessions:

We’re unable to consider an applicant that’s had repossession at any stage.

Business Credit Profile

Please discuss with your BDM any applicants with the following associated business history

• Receivership
• Administration Order
• Winding Up Petition
• Liquidation

Minimum age:18
Maximum age: Maximum 85 at maturity.

Properties aged less than ten years old, recently converted properties or properties occupied for the first time must benefit from one of the following:

• N.H.B.C. guarantee;
• Premier Guarantee Scheme;
• Building Life Plan;
• LABC New Home Warranty;
• Checkmate Castle 10 New Home Warranty;
• Build Assure (New Homes Structural Defects Insurance);
• Build Zone Structural Warranty;
• Zurich Municipal; (provided pre Dec 2009)
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI;
• BOPAS (Build Offsite Property Assurance Scheme):  MMC only
• Advantage
• Aedis Warranties
• Global Home Warranties
• Protek
• ICW
• ARK Residential New Build Warranty

Please refer to your BDM if you have a property which does not benefit from one of the above prior to submission.

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

Retrospective PCC’s are not acceptable.

The solicitor acting for Interbay will ensure an acceptable warranty is in place.

We will consider capital raising for any legal purpose on all remortgage applications. The amount and purpose of the capital raising should be provided on the application.

Capital raising cannot be accepted for the following purpose:

Repaying gambling debts

If the purpose of capital raising is tax related or for business purposes outside of property investment please discuss with your specialist finance account manager prior to submission

Where certified documents are required in support of an application, they should be certified by a suitable representative of the introducing broker or intermediary company. The certification will need to clearly show the following:

• The company name
• The certifier’s name and their position within the company
• The certifier’s signature
• The date

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

ID and residency documents must be certified individually.

For more information on our validation requirements for supporting documents, click here.

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system an EWS1 certificate with supporting covering letter from the certificate provider will be requested for review by our Real Estate team. The Real Estate team may need to speak with the EWS1 certificate provider as part of their validation process.

InterBay consider property postcodes for this reason on a case by case basis and taken into consideration with the One Savings Bank portfolio and non-One Savings Bank portfolio.

The following types of application would be considered consumer buy to let and therefore cannot be considered for lending purposes:

• The client does not own any other buy to let properties, and we are offered either a property inherited or the property they or a related person, previously resided at

Legal Representation

All applications with Interbay will need a solicitor instructing from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain Circumstances separate independent legal advice may still be required.

Please see or Solicitors details on our Literature page.

Please see legal fee scale.

A mortgage application cannot be considered before a criminal conviction is spent. Please contact us directly to discuss the time limits of spent convictions.

Individuals (UK and EU nationals residing in the UK)

Limited Companies (UK incorporated) 

• For company applications it is acceptable for a shareholder to be a limited company. Where ownership is >25%, the ultimate beneficial owner (natural person) must be identified.
• For trading limited companies, a floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required for 100% of the loan.

LLP (UK Incorporated)

Trusts

Re-mortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this isn’t available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
• New build properties excluded
• All other standard criteria apply.

Acceptable deposit sources:

The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Mother
• Father
• Sibling
• Grandparent.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan
• The gift is non-refundable
• The donor won’t have an interest in the property.

A certified copy of the donor’s ID is required. In the event the applicant and family member(s) have different surnames, we require evidence of a family name connection such as a marriage certificate.

Should the gift originate from family living abroad, we require evidence of:

• The funds being available in the family member’s account
• The funds showing in the applicant’s UK bank account.

Builder’s incentives:

Builders’ incentives are acceptable.

Calculation

Builders’ incentives are deducted from the lower of the purchase price and valuation. The loan amount is based on the resulting lower total.

Vendor deposit:

Vendor deposits are acceptable.

Calculation:

Vendor deposits are deducted from the lower of the purchase price and valuation.

The loan amount is based on the resulting lower total.

Inter Company Loans

Inter-company loans are an acceptable source of deposit, subject to the following criteria:

• The loan term must not exceed that of the mortgage
• The majority shareholder to mirror across SPV and connected company
• Must be UK to UK company (no offshore companies)
• Loan needs to be repayable and a term agreed with documented loan agreement (copy required to be held on file)
• Rate of interest applied should be HMRC’s ordinary rate of interest (currently 2.25%)
• Any monthly payment to be included in ICR calculation
• Connected company not to have any interest or charge over the Bank’s security.

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Applicants with diplomatic immunity from UK law will not be accepted.

Early Repayment Charges may apply to your customer if they decide to repay all or part of their mortgage early.

Details of the charges can be found in Section 1.9.2 of the Facility Letter.

A minimum of 12 months employment history is required for all employed / self-employed applicants.

Employed

The latest payslip is required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income.

Self-Employment

The latest annual accounts or SA302/tax calculation with corresponding overview are required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental, earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income.

Company Directors

Where a company director owns more than 25% of the company shares they must be treated as self-employed and accounts obtained as per the above

Total income will comprise both directors’ remuneration and dividend income.

Applications where it’s confirmed that the minimum EPC rating for the mortgaged property is within band F or band G will be declined unless a valid exemption is in place.

These can be considered where:

• There is an active and transactional market within the block/development.
• The security isn’t in a pre-emption period.

Standard property – First time landlords acceptable.

Complex property – Minimum of 2 years sector experience.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Mother
• Father
• Sibling
• Grandparent.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan
• The gift is non-refundable
• The donor won’t have an interest in the property.

A certified copy of the donor’s ID is required. In the event the applicant and family member(s) have different surnames, we require evidence of a family name connection such as a marriage certificate.

Should the gift originate from family living abroad, we require evidence of:

• The funds being available in the family member’s account
• The funds showing in the applicant’s UK bank account.

A property being purchased from a family member at a discounted price is acceptable providing that the family member will not continue to reside.

Purchase from an immediate family member at discounted purchase price will be assessed in the same manner as gifted family deposit.

• LTV will be based on the valuation of the property.
• Vendor to confirm they have relinquished all rights to the property and will not continue to reside therein
• The reason for the discounted purchase price must be established.

Gifted deposits will not be accepted from anyone that will reside in and/or have an interest in the property but will not be party to the mortgage.

We are unable to lend on a property where new or existing tenants are related to the applicant.

Application fee:

£145, payable at time of application

Arrangement fees:

Please see individual product pages

Valuation fees will need to be paid by the applicant prior to instruction.

Please see the valuation fee scale

Legal Representation

All applications with Interbay will need a solicitor instructed from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain circumstances separate independent legal advice may still be required.

Please see our approved solicitor panel and their fees for joint of sole representation.

Applications where all borrowers are first time landlords who are not residential homeowners and/or developers are not acceptable.

First-time landlords are acceptable if they’re a residential homeowner.

Maximum 80% LTV applies for first-time landlords.

Landlord experience isn’t always required.

Available for standard properties:

• Single title dwelling
• HMO / Multi let / Student let up to 6 rooms
• MUFB up to 6 units

• Up to a maximum of 10 storeys (ground floor excluded)
• Up to 20 storeys in London Boroughs (ground floor excluded)
• A lift is required if our security is on the 4^th floor or above
• Minimum floor area 30m².
• Flats in blocks must be of standard construction

Flats above or adjacent to commercial premises may be considered on an individual basis.

Studio flats can be considered when part of a MUFB.

Flats in blocks of more than 10 storeys or 20 storeys in London Boroughs, may be considered by exception, refer to your specialist finance account manager prior to submission.

Flats above or adjacent to commercial premises may be considered on an individual basis. Please note, these types of properties will be down to valuer’s comments and any valuation instruction is at the individual’s risk.

A property with an element of Flying Freehold can be considered. In all instances where the flying freehold portion exceeds 10%, the case will require approval by a suitably mandated underwriter.

Where an applicant is from outside the EEA they must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK. Proof of visa will be required.

Freehold flats/maisonettes are unacceptable with the exception of Multi-Unit properties. If the applicant is the sole owner of the freehold to a building that contains the leasehold flat, InterBay will take a charge over both the freehold and the leasehold.

As part of GDPR it is important that all customers and intermediaries are aware of how we use personal data, please select the relevant Privacy Notice below for further details:

• Privacy policy
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The definition of a HMO is set out in the Housing Act 2004. Generally a house in multiple occupation will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non-self-contained flats and some self-contained flats.

Small (standard) HMO

Contains a maximum of 6 bedrooms and is essentially a property that will prove desirable to both owner-occupiers and HMO operators and will typically be configured as a house with 1 kitchen and bathroom, albeit the rooms are let separately and each room is likely to have a lock on it.

Criteria:

Minimum property value £75,000

Maximum LTV 80%

HMOs up to six bedrooms

Available in England and Wales

Available for first time landlords

Please see rental assessment for interest cover ratios.

Licensing and Planning:

For purchases of property with up to and including 6 bedrooms, the following apply as applicable:

• Where the property is currently licenced, the Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to arrange for licence to be transferred into own name;
• Where the property is not licenced but the applicant holds a licence on an alternative property. the Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to apply for a licence on the subject property within 60 days from completion;
• Where the property is not licenced and the applicant does not hold a licence on an alternative property; the applicant is to undertake to apply for a licence within 30 days from completion.

Licences must be available prior to release of funds for all refinance applications unless the property has been subject to a refurbishment and has not been used as a HMO previously.

The terms of the licence must be complied with at all times

InterBay reserve the right to request proof of a licence throughout the term of the mortgage

Valuations:

A physical valuation will be sourced from Connells or an in-house valuer.

Valued on a Comparable basis

Communal space, amenities and fire precautions

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance.

The HMO must have the correct level of communal space, amenities and fire precautions as set out by the respective local authority.

The spatial requirements are as follows:

• Single bedroom: floor area 6.51sqm minimum
• Double bedroom: floor area 10.22sqm minimum (rooms can’t include areas where ceiling height is below 1.5m)
• 1-3 persons: 13.5sqm total communal living space, the kitchen must be at least 5sqm
• Four persons: 17sqm total communal living space, the kitchen must be at least 6sqm
• Five persons: 18sqm total communal living space, the kitchen must be at least 7sqm
• Six persons: 20sqm total communal living space, the kitchen must be at least 9sqm

The definition of a HMO is set out in the Housing Act 2004. Generally a house in multiple occupation will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non-self-contained flats and some self-contained flats.

Large (complex) HMO

Contains 7 or more bedrooms and may comprise multiple kitchens and bathrooms and/or kitchenettes and en-suite facilities. These are less likely to appeal to owner occupiers as significant expenditure will be required to reinstate the property.

Criteria:

Minimum property value £75,000, although low value properties will need to be referred to your specialist finance account manager

Maximum LTV 80%

HMOs of 7 or more bedrooms

Available in England and Wales

Applicant needs to demonstrate 2 years sector experience. For purchases where the property has 7 or more bedrooms, either the applicant on an alternative property or the proposed security property must have a HMO licence.

Please see rental assessment for interest cover ratios.

Licensing and Planning:

Licensing and planning will be checked during the legal process, please ensure the applicant and property have the correct planning and licensing prior to instructing valuation.

For purchases where the property has 7 or more bedrooms, a copy of the licence or evidence that the applicant holds a licence on an alternative property must be received prior to release of funds. The terms of the licence must be complied with at all times

Licences must be available prior to release of funds for all refinance applications unless the property has been subject to a refurbishment and not been as a HMO previously.

InterBay reserve the right to request proof of a licence throughout the term of the mortgage

Valuations:

Valued on an investment basis

Communal space, amenities and fire precautions

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance.

The HMO must have the correct level of communal space, amenities and fire precautions as set out by the respective local authority.

The spatial requirements are as follows:

• Single bedroom: floor area 6.51m² minimum
• Double bedroom: floor area 10.22m² minimum (rooms can’t include areas where ceiling height is below 1.5m)
• 1-3 persons: 13.5m² total communal living space, the kitchen must be at least 5m²
• Four persons: 17m² total communal living space, the kitchen must be at least 6m²
• Five persons: 18m² total communal living space, the kitchen must be at least 7m²
• Six persons: 20m² total communal living space, the kitchen must be at least 9m²
• 7-10 persons: 27.5m² total communal living space, the kitchen must be at least 11m²

We aim to get electronic proof of identity and address, but if documentation is required, we accept the following:

Identification

• Valid UK/non-UK passport
• Valid UK driving licence*, photocard (full or provisional)
• Valid non-UK passport or national ID card
• HM forces/police warrant card
• Shotgun licence or firearms certificate.

Address

• Valid UK driving licence*, photocard (full or provisional) – if not used as proof of ID
• Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK – includes bank or building society savings book (not Internet printed)
• Current mortgage statement issued by a regulated financial sector firm in the UK
• Utility bill or landline telephone bill (not internet printed and the landline number must be the same as quoted on the application)
• Council tax bill
• A positive voter’s roll result (please includes the reference number or printed copy as evidence).

Note:

*In accordance with the DVLA regulations you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of identity, and therefore other items may be requested.

Affordability is based on rental income.

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

The rent achieved by the property needs to be sufficient to meet the minimum interest cover requirements determined by InterBay.

The interest rate used in the ICR calculation is determined by the selected product as follows:

The required interest coverage ratio (ICR) will depend on the property type and lending entity. The ICR will be calculated using a stressed rate of 5.5%, or the initial pay rate +1.55%, whichever is higher.

However, the following exceptions apply:

• If the case is a remortgage with no additional borrowing, ICR will be calculated using the initial pay rate +1.05%, with no minimum stress rate
• If the five year fixed rate is being used, ICR will be calculated using the initial pay rate, with no additional margin or minimum stress rate.

• The minimum remaining lease term must be at least 50 years unexpired on the lease after the end date of the mortgage term.
• Leasehold properties on an interest only basis where the remaining lease term is less than 85 years will be accepted at a maximum 80% LTV

InterBay will consider lending to business applicants providing they meet the following criteria:

• The business must have a UK registered address and must operate entirely within the UK;
• Maximum term 30 years (maximum guarantor/director age 85 years at the end of the term).
• In all applications, Personal Guarantees will be required.
• For company applications where the shareholding is owned by another limited company, it will be necessary to trace back to the ultimate beneficial owners and obtain the relevant personal guarantees.
• For trading limited companies a floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required for 100% of the loan.

Limited company applications will require all directors to provide a Personal Guarantee for which we require them to have obtained independent legal advice.

Legal advice can be obtained from an independent solicitor or from the same firm that are undertaking the conveyancing on the application, however the same person/s within the firm should not provide independent legal advice as well as completing the conveyancing.

Obtaining legal advice may incur additional costs for the customer and they should contact the acting conveyancer for details of this.

Please refer to the product guide for details of minimum and maximum loan amounts.

InterBay calculates the loan to value based on the lower of the purchase price or the property value as determined by the valuer.

The maximum loan size will vary by product; please check the relevant product guide for further information.

LTV limits are based on the net loan amount exclusive of any fees.

Properties located in mainland England and Wales are acceptable.

Applications in the following locations will not be considered:

• Northern Ireland
• Channel Islands
• Isle of Man
• Sark, Alderney, Herm
• Scotland

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

There is no minimum period of ownership however, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this isn’t available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor

Minimum property value: 

Single property £75,000

Small HMO £75,000

MUFB £75,000

Please refer to our product guide for minimum loan sizes.

Modern Methods of Construction (MMC) are acceptable in principle to Interbay however they must fulfil the Bank’s core criteria of being readily saleable and readily mortgageable

Is the construction an on-site or off-site method?

There are numerous types of MMC however they can be categorised two main groups, on-site and off-site.

Off-site

• Volumetric- three-dimensional units which are fully fitted off-site and then transported and craned into site
• Pods- bathroom and kitchen pods are completed off site then fitted into the development like a jigsaw piece
• Panelised systems- Structurally Insulated Panels (SIPs) and Cross Laminated Timber (CLT) are now well established forms of construction
• Sub-assemblies and components- larger components such as roof and floor cassettes or dormer extensions

Off-site construction is only acceptable if the technology is Build Offsite Property Assurance Scheme (BOPAS) accredited.

On-site

• Thin joint blockwork-combines aircrete blocks (Celcon Plus, Jumbo Blok or MultiPlate) with specifically developed thin joint mortar called Celifix.
• Insulated Concrete Formwork (ICF)- otherwise known as permanently insulated formwork (PIF) is an insulated in-situ concrete system

If an off-site technology is evidenced does it have BOPAS registration?

All MMCs are required to have:

• Build Offsite Property Assurance Scheme (BOPAS) accredited technology (if off-site manufactured).
• 10 year new homes warranty or a UK Finance compliant Professional Consultant’s Certificate (PCC) from the approved list 'see building warranties'
• Local authority approvals
• BBA/BRE Certificates as follows;

Frame: Confirming the building system has a durability of at least sixty years. The certificate must also confirm that the system can be used with appropriate claddings and roof types

Claddings: Stating what maintenance is required and the life expectancy of them.

The warranty should cover all elements of the build rather than being a piecemeal guarantee on part of the building fabric.

A Multi-Unit property consisting of up to 6 separate self-contained units or flats that are held on a single freehold title

OR

A Multi-Unit property consisting of up to 6 separate self-contained leasehold flats where the applicant owns the freehold and all the leasehold flats within the block, albeit a separate legal entity.

For blocks of up to and including 6 units, each individual flat within the block must be:

• Marketable in isolation either to owner occupier purchasers or investors
• Fully self-contained, including separate services
• Over 30m² GIA.

The block must:

• Be a complete, continuous freehold block
• Benefit from the correct local authority consents

Valued on an aggregate basis by Connells.

A Multi-unit property consisting of up to 6 separate self-contained units which do not satisfy the above 5 points will still be considered at the underwriters discretion but valued on a block investment basis only.

A broken block of flats (up to 6 units remaining on the freehold title) where by the applicant has a percentage of the flats remaining on the freehold but third parties owning some of the flats on a leasehold basis may be considered on a block investment basis only. 

Exposure for broken blocks of flats do not need to be a concern unless the valuer advises us of a concentration issue.

Max 80% LTV

Minimum Loan: Refer to product guide

Minimum Property Value £75,000 (as part of a portfolio)

Available for first time landlords

Our security cannot consist of a mix of leasehold and flats left on the freehold whereby they are all owned by the applicant

Any adverse planning restrictions that could prevent the creation of leases are not acceptable.(Applicable for small blocks as valued with the assumption the flats will be sold off individually and leases created. May also applicable to large blocks if valued and underwritten on an aggregate basis).

Available for properties in England and Wales.

A Multi-Unit property consisting of 7 or more separate self-contained units or flats that are held on a single freehold title

OR

A Multi-Unit property consisting of 7 or more separate self-contained leasehold flats where the applicant owns the freehold and all the leasehold flats within the block, albeit a separate legal entity OR

A broken block of flats whereby the applicant has 7 or more of the remaining flats within the block remaining on the freehold title but third parties owning some of the flats on a leasehold basis.  

Exposure for broken blocks of flats do not need to be a concern unless the valuer advises us of a concentration issue.

All of the above will be valued on a block investment basis.

For any of the above scenarios we can consider:

• Studios under 30 sqm
• Properties with shared utilities.

Max 80% LTV

Minimum Loan: Refer to product guide

Maximum loan £1,500,000 – larger loans can be accepted by referral

Minimum Property Value £75,000 (as part of a portfolio)

Applicant must have a minimum of 2 years sector experience

Any adverse planning restrictions that could prevent the creation of leases are not acceptable.

Our security cannot consist of a mix of leasehold and flats left on the freehold whereby they are all owned by the applicant.

If flats are individually marketable and mortgageable then they can be valued and underwritten on an aggregate value, this will be at the underwriters discretion, based on the quality of the development and liquidity of the security, otherwise it will be on the block investment value. 

Available for properties in England and Wales.

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

• InterBay define New Build as a property that is less than 2 years old (from date of practical completion) and / or a property that has never been lived in.
• Maximum 80% LTV accepted Houses only.
• New build flats max 75% LTV.
• Borrowing is available on flats up to 10 storeys (20 storeys in London Boroughs) excluding ground floor.
• Reassignment of contracts is unacceptable.
• An acceptable Building Warranty or Professional Consultants Certificate with appropriate PI cover will be required. Please see the building warranties section for more information.
• Builder Deposits -The value of the deposit must be deducted from the purchase price or value whichever lower and lending based on the lower amount. The borrower must inject the required level of deposit to meet product requirements.
• Builders Incentives - The value of the incentive must be deducted from the purchase price or value whichever lower and lending based on the lower amount.

Offers will be valid for 3 months.

An offer extension may be considered (up to a maximum of 6 months from original valuation) on request from either a broker or a solicitor with confirmation that there have been no changes in the applicant’s circumstance.

Customers are able to make overpayments on their mortgage, should they wish to do so, 10% of the balance can be repaid in any 12 month period, without notice and without incurring ERC.

Customers should read their Mortgage Offer for full details.

Personal guarantees will be required from the directors for 100% of the loan.

A customer with four or more mortgaged buy to let properties either jointly or separately owned.

Enhanced checks are required in addition to the standard application requirements detailed below:

A portfolio summary must be provided through the Group’s portfolio web portal if there is more than one other mortgaged property with another lender.

The subject property should not be included as part of the portfolio submission.

The portfolio will be checked to ensure it can meet a minimum ICR of 125% at a stressed interest rate of 5.0%.

This must also be accompanied by:

• A completed Business plan, cash flow and Asset & Liabilities form
• One month’s bank statement
• Proof of non rental earned income is not required.

Interbay has no limit to background properties where the applicant can satisfy the above.

Interbay is able to offer a portfolio loan across multiple securities where the applicant is looking to refinance or purchase a portfolio.

The properties must meet our criteria individually although the rent, maximum loan and LTV will be calculated using an aggregate basis of all securities.

Minimum property value £75,000

Minimum loan: Refer to product guide

Maximum loan £1,500,000 or more by referral.

Maximum LTV 80%

Interbay mortgages are not portable.

Remortgages will be considered where the security property has been owned for less than 6 months where the property has recently been inherited or subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this isn’t available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
• New build properties excluded
• All other standard criteria apply.

Licensing and Planning:

Licensing and planning will be checked during the legal process, please ensure the applicant and property have the correct planning and licensing prior to instructing valuation.

For purchases where the property has seven or more bedrooms, a copy of the licence or evidence that the applicant holds a licence on an alternative property must be received prior to release of funds. The terms of the licence must be complied with at all times

For remortgages, the solicitor must confirm sight of a copy of the Licence prior to release of funds or confirmation that a HMO licence application has been made.

InterBay reserve the right to request proof of a licence throughout the term of the mortgage.

• Interest Only
• Part amortised
• Fully amortised

All UK and EEA nationals are acceptable subject to a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have a permanent right to reside in the UK.

Expats are not acceptable

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example a property that can only be occupied for a maximum of 11 months in any one year.

Similarly, properties that can only be used for retirement or sheltered accommodation are not acceptable. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

Interbay will consider holding a retention as is deemed appropriate based on the valuer’s comments.

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

• Timber and damp (T&D);
• Electrical;
• Trees;
• Cavity Wall Tie;
• Mining Report

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

Where ongoing movement is reported, or a period of monitoring is recommended by a surveyor, we are unable to lend. To determine this we may request a structural survey or building survey of the property, produced by a member of the following bodies:

• The Institution of Structural Engineers (istructe.org.uk)
• The Institution of Civil Engineers (ice.org.uk)
• The Royal Institution of Chartered Surveyors (rics.org)

The report should be addressed to the applicant(s) and InterBay, or otherwise confirmed by the surveyor that the applicant(s) and InterBay can have reliance upon the report.

Please refer to the HMO section

Purpose built student accommodation please refer to your specialist finance account manager.

Good quality studio flats may be considered subject to the following:

• Minimum floor area of 30m²
• Must be self-contained with private facilities.
• Maximum LTV 80%

Sub 30 sqm studios can only be considered where they form part of a larger MUFB. Please see the MUFB section or refer to your specialist finance account manager.

Properties in England and Wales must be let under a single assured shorthold tenancy up to a maximum of 36 months.

Unacceptable tenancies: Tenancy agreements for tenants deemed as vulnerable are not acceptable

Please refer to your specialist finance account manager or full details of unacceptable tenancies.

Freehold 

• Acceptable for houses & MUFB’s.
• Single Freehold flats or / maisonettes are not acceptable.

Leasehold 

• Minimum remaining lease term is 50 years unexpired at the end date of the mortgage term.
• Refer to Leasehold section for short leasehold requirements in London and South East

Flying Freehold 

• Up to 10% acceptable subject to valuers comments
• Underwriters discretion for flying freehold of greater than 10% of total area.
• The valuer must comment and confirm the total percentage.

Commonhold 

• Not acceptable.

Please note, if the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, InterBay will require a charge over both the freehold and the leasehold.

• Minimum term 2 years
• Maximum term 30 years

We accept properties of traditional and Modern Methods of Construction (MMC).

The following methods of construction are not acceptable:

• Property designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and the properties either side have not been repaired under a scheme licensed by PRC Homes Ltd
• Properties constructed with high-alumina cement
• Timber framed property with no brick skin/masonry cladding or where modern steel frame does not benefit from a 10 year warranty and supported by BOPAS
• Property where material environmental hazards are present
• Any property containing Mundic concrete – unless a concrete screening test has been provided strictly in accordance with the latest RICs guidance and the concrete has been classified as A
• Any property where there is ongoing movement/monitoring is required
• Mobile homes & Houseboats
• Grade I listed buildings
• Residential buildings over 18 metres in height incorporating a cladding system which may contain combustible material;
• Residential buildings that incorporate balconies which may contain combustible material

The following forms of deposit/incentive are not acceptable:

• Help to Buy.
• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, family gifted deposit, and inter company loans for further information on these scenarios.

The following types of property are not considered acceptable:

• Property designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and the properties either side have not been repaired under a scheme licensed by PRC Homes Ltd;
• Properties constructed with high-alumina cement;
• Timber framed property with no brick skin/masonry cladding unless it’s an MMC supported by BOPAS. Character period properties are considered on individual merits where buildings insurance is available on conventional terms;
• 100% steel framed property with no brick skin/masonry cladding or where a modern steel frame does not benefit from a 10 year warranty and supported by BOPAS
• Properties where material environmental hazards are present;
• Properties containing Mundic concrete classified as class B or C are unacceptable. Classes A and A/B and A1, A2 and A3 are acceptable.
• Properties where commercial usage exceeds 20%. The commercial element should not extend to light engineering, livestock, rearing or caring for domestic animals. Such use should not include circumstances where clients are seen on the premises on a regular basis (e.g. dental surgery would not be acceptable);
• Live / work units;
• Any property deemed unsuitable security by the valuer;
• Any property where there is ongoing movement/monitoring is required;
• Individual freehold flats/maisonettes (excluding Jersey and Guernsey);
• Mobile homes and houseboats;
• Grade I listed buildings;
• Any property whose saleability may be adversely affected by local planning or by an unsatisfactory mining search;
• Properties where Japanese Knotweed has been identified within 7 metres of boundary of property;
• Residential buildings over 18 metres in height incorporating a cladding system which may contain combustible material;
• Residential buildings that incorporate balconies which may contain combustible material.
• Basement flats are not normally acceptable, but can be considered if deemed good quality at the underwriters discretion.

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

• The documents must be certified and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Proof of Name and Address document for full details of our ID and Residency validation requirements.

Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

InterBay retains the right to request original documentation when considered appropriate.

All applications will require a valuation to be instructed by InterBay.

The valuation will be instructed following our initial assessment, once we are satisfied with the information we have received at that point.

If you want to place the valuation on hold for any reason you must notify us when you submit the application, this will be at our discretion.

If the valuation does not take place we are able to refund this fee, but for all underwritten cases the £145 administration fee is non-refundable.

See product guide for details of the fees involved.

All valuations are subject to underwriter review.

Valuations are for the banks lending purposes only, please note we will not be able to provide a copy of any short form (Connells) valuations to brokers or applicants. The provision of Long form valuations to brokers or applicants are at the discretion of InterBay.

The value of the deposit must be deducted from the purchase price or value whichever lower and lending based on the lower amount. The deposit must come from the applicants own resources without recourse to additional borrowing.

Purchase from an immediate family member (vendor) at discounted purchase price will be assessed in the same manner as gifted family deposit.

• LTV will be based on the valuation of the property.
• Vendor to confirm they have relinquished all rights to the property and will not continue to reside therein

The reason for the discounted purchase price must be established

Purchase from individual to limited company can be done using a directors loan. These are acceptable subject to:

• The individual is transferring a current/purchasing a new property into a company structure;
• Purchase price is at full market value to ensure tax liabilities are paid in full;
• The individual providing the directors loan is a shareholder within the business;
• They are investing in the company by way of a directors loan and it will be included in the subsequent company accounts;
• The difference between the mortgage and the purchase price is covered by the directors loan;
• The loan is non-interest bearing.

Interbay will base their lending off the valuation or purchase price whichever is the lower with exception to family discounted purchase.

We consider applications on most asset classes. For further details please speak with your specialist finance account manager.

Accepted accountant’s qualifications:

• Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified
• Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified
• Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified
• Association of Authorised Public Accountants (AAPA): AAPA qualified
• Chartered Institute of Taxation (CIOT): CTA qualified
• Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified
• Association of International Accountants (AIA): AIA/FAIA qualified
• Institute of Financial Accountants (IFA): FFA/AFA qualified.

^*Where all CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application;

• Where all CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration;
• Where the CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and satisfied prior to mortgage application.

Individual Voluntary Agreement (IVA), Bankruptcy and Debt Management Plans (DMP) are not acceptable.

Repossessions:

We’re unable to consider an applicant that’s had repossession at any stage.

Business Credit Profile

Please discuss with your specialist finance account manager any applicants with the following associated business history

• Receivership
• Administration Order
• Winding Up Petition
• Liquidation

Minimum age: 18
Maximum age: Maximum 85 at maturity

Properties aged less than ten years old, recently converted properties or properties occupied for the first time must benefit from one of the following:

• N.H.B.C. guarantee;
• Premier Guarantee Scheme;
• Building Life Plan;
• LABC New Home Warranty;
• Checkmate Castle 10 New Home Warranty;
• Build Assure (New Homes Structural Defects Insurance);
• Build Zone Structural Warranty;
• Zurich Municipal; (provided pre Dec 2009)
• UK FINANCE Compliant Professional Consultants Certificate with proof of PI;
• BOPAS (Build Offsite Property Assurance Scheme):  MMC only
• Advantage
• Aedis Warranties
• Global Home Warranties
• Protek
• ICW
• ARK Residential New Build Warranty

Please refer to your specialist finance account manager if you have a property which does not benefit from one of the above prior to submission.

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

Retrospective PCC’s are not acceptable.

The solicitor acting for InterBay will ensure an acceptable warranty is in place.

We will consider capital raising for any legal purpose on all re-mortgage applications. The amount and purpose of the capital raising should be provided on the application.

Capital raising cannot be accepted for the following purpose:

Repaying gambling debts

If the purpose of capital raising is tax related or for business purposes outside of property investment please discuss with your specialist finance account manager prior to submission

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

• The documents must be certified and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Proof of Name and Address document for full details of our ID and Residency validation requirements.

Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

InterBay retains the right to request original documentation when considered appropriate.

Sustainable and viable business to be occupying the commercial unit.

Minimum of 12 months unexpired term on current lease.

For Operating Company / Property Company application a mortgagee in possession clause may be required within the lease.

Leases will be required as part of the application but will be checked post offer by the banks solicitor.

Please refer to your sales team for more information.

Legal Representation

All applications with Interbay will need a solicitor instructing from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain circumstance separate independent legal advice may still be required.

Please see or Solicitors details on our Literature page.

Please see legal fee scale.

A mortgage application cannot be considered before a criminal conviction is spent. Please contact us directly to discuss the time limits of spent convictions.

Individuals (UK and EU nationals residing in the UK)

Limited Companies (UK incorporated)

• For company applications it is acceptable for a shareholder to be a limited company. Where ownership is >25%, the ultimate beneficial owner (natural person) must be identified.
• For trading limited companies A floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required from the directors for 100% of the loan.

LLP (UK Incorporated)

Trusts

Re-mortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process.
• New build properties excluded.
• All other standard criteria apply.

If a Desktop environmental report is requested for a commercial property, please see below examples of companies that provide suitable desktop reports:

• Groundsure – Screening Report.
• Argyll Environmental – Site Solutions Combined Report.
• Landmark Group – Sitecheck Assess report.

If a potential contaminated land risk is found, the report will state 'Further Action'. In this case, please follow the recommendations and next steps detailed in the report.

We will not accept a Desktop environmental report that isn’t a ‘Pass’ and doesn’t represent acceptable banking security.

The Bank does not accept environmental indemnity insurance policies on properties where potential contamination has been identified.

Acceptable deposit sources

The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Mother
• Father
• Sibling
• Grandparent.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan
• The gift is non-refundable
• The donor won’t have an interest in the property.

A certified copy of the donor’s ID is required. In the event the applicant and family member(s) have different surnames, we require evidence of a family name connection such as a marriage certificate.

Should the gift originate from family living abroad, we require evidence of:

• The funds being available in the family member’s account
• The funds showing in the applicant’s UK bank account.
• How the funds were created/achieved

Builder’s incentives:

Builders’ incentives are acceptable.

Calculation

Builders’ incentives are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Vendor deposit:

Vendor deposits are acceptable.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Inter Company Loans

Inter-company loans are an acceptable source of deposit, subject to the following criteria:

• The loan term must not exceed that of the mortgage
• The majority shareholder to mirror across SPV and connected company
• Must be UK to UK company (no offshore companies)
• Loan needs to be repayable and a term agreed with documented loan agreement (copy required to be held on file)
• Rate of interest applied should be HMRC’s ordinary rate of interest (currently 2.25%)
• Any monthly payment to be included in ICR calculation
• Connected company not to have any interest or charge over the Bank’s security.

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Applicants with diplomatic immunity from UK law will not be accepted.

Early Repayment Charges may apply to your customer if they decide to repay all or part of their mortgage early.

Details of the charges can be found in Section 1.9 of the Facility Letter.

A minimum of 12 months employment history is required for all employed / self-employed applicants.

Employed

The latest payslip is required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income.

Self-Employment

The latest annual accounts or SA302/tax calculation with corresponding overview are required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental, earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income. 

Company Directors

Where a company director owns more than 25% of the company shares they must be treated as self-employed and accounts obtained as per the above

Total income will comprise both directors’ remuneration and dividend income.

Applications where it’s confirmed that the minimum EPC rating for the mortgaged property is within band F or band G will be declined unless a valid exemption is in place.

Minimum 2 years relevant sector experience

Please refer to your specialist finance account manager cases where your applicant does not have current semi commercial investment experience.

Existing Interbay applicants with a clear six month payment track record will benefit from a reduction of our standard arrangement fee of 0.25%.

Please refer to ‘Deposit’ section for acceptable deposit sources.

Application fee:

£145, payable at time of application

Arrangement fees:

Please see individual product pages  

Valuation fees will need to be paid by the applicant.

Please see the valuation fee scale

Legal Representation

All applications with Interbay will need a solicitor instructed from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain circumstance separate independent legal advice may still be required.

Please see our approved solicitor panel and their fees for joint of sole representation.

Applications where all borrowers are first time landlords who are not residential homeowners and/or developers are not acceptable.

Please refer any applicant without either buy to let and commercial investment OR commercial investment experience to your specialist finance account manager.

• For semi-commercial properties, occupied by the applicant, the residential element must not exceed 40% of the total SQM, including accessible areas inside and outside the security if to be considered acceptable.
• Studio flats can be considered, subject to underwriter review
• For semi-commercial properties the residential element is to be self-contained

A property with an element of Flying Freehold can be considered. In all instances where the flying freehold portion exceeds 10%, the case will require approval by a suitably mandated underwriter.

Where an applicant is from outside the EEA they must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK. Proof of visa will be required.

As part of GDPR it is important that all customers and intermediaries are aware of how we use personal data, please select the relevant Privacy Notice below for further details:

• Privacy policy
• Cookie policy

Acceptable if included as part of the freehold of a semi commercial.

The definition of a HMO is set out in the Housing Act 2004. Generally a house in multiple occupation will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non-self-contained flats and some self-contained flats.

Small HMO

Contains a maximum of 6 bedrooms

Large (complex) HMO

Contains a minimum of 7 bedrooms and a maximum of 20 bedrooms.

Criteria:

Minimum property value £150,000

Maximum LTV 75%

Available in England and Wales

Please refer to your specialist finance account manager to discuss applicant’s experience

Licensing and Planning:

For purchases of property with up to and including 6 bedrooms, the following apply as applicable:

• Where the property is currently licenced, the Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to arrange for licence to be transferred into own name;
• Where the property is not licenced but the applicant holds a licence on an alternative property. the Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to apply for a licence on the subject property within 60 days from completion;
• Where the property is not licenced and the applicant does not hold a licence on an alternative property; the applicant is to undertake to apply for a licence within 30 days from completion.

Licences must be available prior to release of funds for all refinance applications unless the property has been subject to a refurbishment and has not been used as a HMO previously.

The terms of the licence must be complied with at all times

InterBay reserve the right to request proof of a licence throughout the term of the mortgage.

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance.

The HMO must have the correct level of communal space, amenities and fire precautions as set out by the respective local authority.

The spatial requirements are as follows:

• Single bedroom: floor area 6.51sqm minimum
• Double bedroom: floor area 10.22sqm minimum (rooms can’t include areas where ceiling height is below 1.5m)
• 1-3 persons: 13.5sqm total communal living space, the kitchen must be at least 5sqm
• Four persons: 17sqm total communal living space, the kitchen must be at least 6sqm
• Five persons: 18sqm total communal living space, the kitchen must be at least 7sqm
• Six persons: 20sqm total communal living space, the kitchen must be at least 9sqm
• 7-10 persons: 27.5sqm total communal living space, the kitchen must be at least 11sqm

We aim to get electronic proof of identity and address, but if documentation is required, we accept the following:

Identification

• Valid UK/non-UK passport
• Valid UK driving licence*, photocard (full or provisional)
• Valid non-UK passport or national ID card
• HM forces/police warrant card
• Shotgun licence or firearms certificate.

Address

• Valid UK driving licence*, photocard (full or provisional) – if not used as proof of ID
• Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK – includes bank or building society savings book (not Internet printed)
• Current mortgage statement issued by a regulated financial sector firm in the UK
• Utility bill or landline telephone bill (not internet printed and the landline number must be the same as quoted on the application)
• Council tax bill
• A positive voter’s roll result (please include the reference number or printed copy as evidence).

Note:

*In accordance with the DVLA regulations you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of identity, and therefore other items may be requested.

Affordability is based on rental income.

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

ICR to primarily be based on the residential rental income only.

The commercial rental income can be considered subject to validating that:

• the last 12 months rental payments have been paid, and
• there is at least 12 months unexpired term on the current lease

ICR will depend on the loan type:

• Investment loan – ICR will apply based on 5%, or the initial pay rate - whichever is higher at 125%
• Owner occupier – ICR based on market rent confirmed by valuer is 110% (market rent), borrower 125% (net profit/EBITDA)

The minimum remaining lease term must be at least 65 years unexpired on the lease after the end date of the mortgage term.

InterBay will consider lending to business applicants providing they meet the following criteria:

• The business must have a UK registered address and must operate entirely within the UK;
• Maximum term 30 years (maximum guarantor/director age 85 years at the end of the term).
• In all applications, Personal Guarantees will be requested.
• For company applications where the shareholding is owned by another limited company, it will be necessary to trace back to the ultimate beneficial owners and obtain the relevant personal guarantees.
• For trading limited companies A floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required from the directors for 100% of the loan.

For limited personal guarantees please refer to your specialist finance account manager.

Please note applicants providing personal guarantees will be required to have independent legal advice which may not be covered under dual representation.

Limited company applications will require all directors to provide a Personal Guarantee for which we require them to have obtained independent legal advice.

Legal advice can be obtained from an independent solicitor or from the same firm that are undertaking the conveyancing on the application, however the same person/s within the firm should not provide independent legal advice as well as completing the conveyancing.

Obtaining legal advice may incur additional costs for the customer and they should contact the acting conveyancer for details of this.

Please refer to the product guide for details of minimum and maximum loan amounts.

InterBay calculates the loan to value based on the lower of either the purchase price or the property value.

The maximum loan size will vary by product; please check the relevant product guide for further information.

LTV limits are based on the net loan amount exclusive of any fees.

Properties located in mainland England, Wales are acceptable.

Applications in the following locations will not be considered:

• Northern Ireland
• Channel Islands
• Isle of Man
• Sark, Alderney, Herm
• Scotland

Semi-commercial Investment

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

Semi-commercial Owner Occupied Trading Business:

Re-mortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process.
• New build properties excluded.
• All other standard criteria apply.

Applications for portfolios only need to meet our minimum loan of £150,000 and consist of the same security (multiple semi-commercial properties). For more information speak to your specialist finance account manager.

Please refer to our product guide for minimum loan sizes.

Modern Methods of Construction (MMC) are acceptable in principle to Interbay however they must fulfil the Bank’s core criteria of being readily saleable and readily mortgage-able

 Is the construction an on-site or off-site method?

There are numerous types of MMC however they can be categorised two main groups, on-site and off-site.

Off-site

• Volumetric- three-dimensional units which are fully fitted off-site and then transported and craned into site
• Pods- bathroom and kitchen pods are completed off site then fitted into the development like a jigsaw piece
• Panelised systems- Structurally Insulated Panels (SIPs) and Cross Laminated Timber (CLT) are now well established forms of construction
• Sub-assemblies and components- larger components such as roof and floor cassettes or dormer extensions

Off-site construction is only acceptable if the technology is Build Offsite Property Assurance Scheme (BOPAS) accredited.

On-site

• Thin joint blockwork-combines aircrete blocks (Celcon Plus, Jumbo Blok or MultiPlate) with specifically developed thin joint mortar called Celifix.
• Insulated Concrete Formwork (ICF)- otherwise known as permanently insulated formwork (PIF) is an insulated in-situ concrete system

If an off-site technology is evidenced does it have BOPAS registration?

All MMCs are required to have:

• Build Offsite Property Assurance Scheme (BOPAS) accredited technology (if off-site manufactured).
• 10 year new homes warranty or a UK Finance compliant Professional Consultant’s Certificate (PCC) from the approved list see building warranties
• Local authority approvals
• BBA/BRE Certificates as follows;

Frame: Confirming the building system has a durability of at least sixty years. The certificate must also confirm that the system can be used with appropriate claddings and roof types

Claddings: Stating what maintenance is required and the life expectancy of them.

The warranty should cover all elements of the build rather than being a piecemeal guarantee on part of the building fabric.

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

• InterBay define New Build as a property that is less than 2 years old (from date of practical completion) and / or a property that has never been lived in.
• Maximum 75% LTV accepted.
• Borrowing is available on flats up to 10 storeys (20 storeys in London Boroughs) excluding ground floor.
• New builds flats with a commercial ground floor are considered.
• Reassignment of contracts is unacceptable.
• An acceptable Building Warranty or Professional Consultants Certificate with appropriate PI cover will be required, Please see the building warranties section for more information.
• Builder Deposits -The value of the deposit must be deducted from the purchase price or value whichever lower and lending based on the lower amount. The borrower must inject the required level of deposit to meet product requirements.
• Builders Incentives - The value of the incentive must be deducted from the purchase price or value whichever lower and lending based on the lower amount.

Offers will be valid for 3 months.

An offer extension may be considered (up to a maximum of 6 months from original valuation) on request from either a broker or a solicitor with confirmation that there have been no changes in the applicant’s circumstance.

Customers are able to make overpayments on their mortgage, should they wish to do so, 10% of the balance can be repaid in any 12 month period, without notice and without incurring ERC.

Customers should read their Mortgage Offer for full details.

Personal guarantees will be required from the directors for 100% of the loan.

InterBay mortgages are not portable.

• Agricultural property
• Amusement arcades
• Bingo hall
• Car Parks (stand alone)
• Car sales forecourts/ showrooms
• Care Homes or residential institutions
• Casino
• Catteries or kennels
• Cinema
• Concert hall
• Equestrian centres
• Garden centres
• Gentleman's Clubs
• Golf clubs
• Hand car wash
• Heavy industrial
• Hospitals
• Hostels
• Leisure centre/purpose built gym
• Library
• Mobile home parks
• Museum
• Night club
• Petrol filling station (current or former)
• Pubs
• Public Hall
• Purpose built places of Worship/religious property
• Repurposed former pubs
• Scrap yards/vehicle decommissioning
• Stand-alone rural/remote properties
• Telecoms masts (stand alone)
• Waste processing/recycling centres

Remortgages will be considered where the security property has been owned for less than 6 months where the property has recently been inherited or subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this isn’t available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
• New build properties excluded
• All other standard criteria apply.

• Interest Only
• Capital and Interest

All UK and EEA nationals are acceptable subject to a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

Expats are not acceptable.

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example a property that can only be occupied for a maximum of 11 months in any one year.

Similarly, properties that can only be used for retirement or sheltered accommodation are not acceptable. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

InterBay will consider holding a retention as is deemed appropriate based on the valuer’s comments.

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

• Timber and damp (T&D);
• Electrical;
• Trees;
• Cavity Wall Tie;
• Mining Report

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

Where ongoing movement is reported, or a period of monitoring is recommended by a surveyor, we are unable to lend. To determine this we may request a structural survey or building survey of the property, produced by a member of the following bodies:

• The Institution of Structural Engineers (istructe.org.uk)
• The Institution of Civil Engineers (ice.org.uk)
• The Royal Institution of Chartered Surveyors (rics.org)

The report should be addressed to the applicant(s) and InterBay, or otherwise confirmed by the surveyor that the applicant(s) and InterBay can have reliance upon the report.

As part of the semi-commercial freehold may be considered.

For the residential element:

Properties in England and Wales must be let under a single assured shorthold tenancy or a contractual tenancy (i.e. a company let or where the annual rent is greater than £100,000) up to a maximum of 36 months.

Unacceptable tenancies: Tenancy agreements for tenants deemed as vulnerable or those with diplomatic immunity are not acceptable:

 Please refer to your specialist finance account manager or full details of unacceptable tenancies.

 Please refer to the commercial tenant / lease section for further information

Freehold 

• Acceptable

Leasehold 

• Minimum remaining lease term is 65 years unexpired at after the end date of the mortgage term.

Flying Freehold 

• Up to 10% acceptable subject to valuers comments
• Underwriters discretion for flying freehold of greater than 10% of total area.
• The valuer must comment and confirm the total percentage.

Commonhold 

• Not acceptable.

Please note, If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, InterBay will require a charge over both the freehold and the leasehold.

• Minimum term 2 years
• Maximum term 30 years

The following assets are considered unsuitable for lending purposes.

Accommodation, food and recreation assets

• Amusement arcades
• Bingo halls
• Casinos
• Cinemas
• Gentleman’s clubs
• Golf clubs
• Hostels
• Leisure centres, including purpose built gyms
• Mobile home parks
• Night clubs
• Pubs, including repurposed former pubs

Arts, civic and places of worship assets

• Concert halls
• Libraries
• Museums
• Public halls
• Purpose built places of worship and religious properties

Wholesale, retail and trade assets

• Car sales forecourts and showrooms
• Garden centres
• Car washes, including hand car wash
• Petrol filling stations, both current and former

Health and social work assets

• Care homes or residential institutions
• Hospitals

Manufacturing and processing assets

• Heavy industrial units
• Scrap yards and vehicle decommissioning units
• Waste processing and recycling centres

Rural and animal assets

• Agricultural property
• Catteries and kennels
• Equestrian centres
• Rural or remote properties

Other unacceptable assets

• Car parks
• Telecommunication masts/equipment

We accept properties of traditional and Modern Methods of Construction (MMC).

The following methods of construction are not acceptable:

• Properties constructed with high-alumina cement
• Timber framed property with no brick skin/masonry cladding or where modern steel frame does not benefit from a 10 year warranty and supported by BOPAS
• Property where material environmental hazards are present
• Any property containing Mundic concrete. Underwriters may consider, by exception, properties with an A1, A2 or A3 classification
• Any property where there is ongoing movement/monitoring is required
• Grade I listed buildings
• Residential buildings over 18 metres in height incorporating a cladding system which may contain combustible material;
• Residential buildings that incorporate balconies which may contain combustible material

The following types of property are not considered acceptable:

• Commercial units with no residential element
• Property designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and the properties either side have not been repaired under a scheme licensed by PRC Homes Ltd;
• Properties constructed with high-alumina cement;
• Timber framed property with no brick skin/masonry cladding unless it’s an MMC supported by BOPAS. Character period properties are considered on individual merits where buildings insurance is available on conventional terms;
• 100% steel framed property with no brick skin/masonry cladding or where a modern steel frame does not benefit from a 10 year warranty and supported by BOPAS
• Properties where material environmental hazards are present;
• Any property containing Mundic concrete;
• Live / work units;
• Any property deemed unsuitable security by the valuer;
• Any property where there is ongoing movement/monitoring is required;
• Mobile homes and houseboats;
• Grade I listed buildings;
• Any property whose saleability may be adversely affected by local planning or by an unsatisfactory mining search;
• Properties where Japanese Knotweed has been identified within 7 metres of boundary of property;
• Semi-commercial buildings over 18 metres in height incorporating a cladding system which may contain combustible material;
• Semi-commercial buildings that incorporate balconies which may contain combustible material;

The following forms of deposit/incentive are not acceptable:

• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, and family gifted deposit for further information on these scenarios.

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

• The documents must be certified and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Proof of Name and Address document for full details of our ID and Residency validation requirements.

Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

InterBay retains the right to request original documentation when considered appropriate.

All applications will require a valuation to be instructed via the VAS Panel Management System. The valuation must be instructed within 7 days of the full application (FMA) being reviewed by the underwriter.

In all instances the £145 administration fee is non-refundable.

All valuations are subject to underwriter review.

The value of the deposit must be deducted from the purchase price or value whichever lower and lending based on the lower amount. The deposit must come from the applicants own resources without recourse to additional borrowing.

Purchase from an immediate family member (vendor) at discounted purchase price will be assessed in the same manner as gifted family deposit.

• LTV will be based on the valuation of the property.
• Vendor to confirm they have relinquished all rights to the property and will not continue to reside therein

The reason for the discounted purchase price must be established

Purchase from individual to limited company can be done using a directors loan. These are acceptable subject to:

• The individual is transferring a current/purchasing a new property into a company structure;
• Purchase price is at full market value to ensure tax liabilities are paid in full;
• The individual providing the director loan is a shareholder within the business;
• They are investing in the company by way of a directors loan and it will be included in the subsequent company accounts;
• The difference between the mortgage and the purchase price is covered by the director loan;
• The loan is non-interest bearing.

Interbay will base their lending off the valuation or purchase price whichever is the lower with exception to family discounted purchase.

We consider applications on most asset classes. For further details please speak with your specialist finance account manager.

Accepted accountant’s qualifications:

• Institute of Chartered Accountants in England and Wales (ICAEW): ACA qualified
• Association of Chartered Certified Accountants (ACCA): ACCA/FCCA qualified
• Chartered Institute of Management Accountants (CIMA): ACMA/FCMA qualified
• Association of Authorised Public Accountants (AAPA): AAPA qualified
• Chartered Institute of Taxation (CIOT): CTA qualified
• Institute of Certified Public Accountants (Ireland) CPA Ireland: CPA/FCPA qualified
• Association of International Accountants (AIA): AIA/FAIA qualified
• Institute of Financial Accountants (IFA): FFA/AFA qualified.

^*Where all CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application;

• Where all CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration;
• Where the CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and satisfied prior to mortgage application.

Individual Voluntary Agreement (IVA), Bankruptcy and Debt Management Plans (DMP) are not acceptable.

Repossessions:

We’re unable to consider an applicant that’s had repossession at any stage.

Business Credit Profile

Please discuss with your specialist finance account manager any applicants with the following associated business history

• Receivership
• Administration Order
• Winding Up Petition
• Liquidation

Minimum age: 18
Maximum age: Maximum 85 at maturity

For all new build commercial properties completed within the last 6 years solicitors will request appropriate warranties or guarantees.

We will consider capital raising for any legal purpose on all re-mortgage applications. The amount and purpose of the capital raising should be provided on the application.

Capital raising cannot be accepted for the following purpose:

Repaying gambling debts

If the purpose of capital raising is tax related or for business purposes outside of property investment please discuss with your specialist finance account manager prior to submission.

Sustainable and viable business to be occupying the commercial unit.

Minimum of 12 months unexpired term on current lease.

For Operating Company / Property Company application a mortgagee in possession clause may be required within the lease.

Leases will be required as part of the application but will be checked post offer by the banks solicitor.

Please refer to your sales team for more information.

Suitable standard construction for the type of property. If you have any technical queries consult your Specialist Finance Account Manager.

Legal Representation

All applications with Interbay will need a solicitor instructing from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain circumstance separate independent legal advice may still be required.

Please see or Solicitors details on our Literature page.

Please see legal fee scale.

A mortgage application cannot be considered before a criminal conviction is spent. Please contact us directly to discuss the time limits of spent convictions.

Individuals (UK and EU nationals residing in the UK)

Limited Companies (UK incorporated)

• For company applications it is acceptable for a shareholder to be a limited company. Where ownership is >25%, the ultimate beneficial owner (natural person) must be identified.
• For trading limited companies A floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required from the directors for 100% of the loan.

LLP (UK Incorporated)

Trusts

Re-mortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process.
• New build properties excluded.
• All other standard criteria apply.

If a Desktop environmental report is requested for a commercial property, please see below examples of companies that provide suitable desktop reports:

• Groundsure – Screening Report.
• Argyll Environmental – Site Solutions Combined Report.
• Landmark Group – Sitecheck Assess report.

If a potential contaminated land risk is found, the report will state 'Further Action'. In this case, please follow the recommendations and next steps detailed in the report.

We will not accept a Desktop environmental report that isn’t a ‘Pass’ and doesn’t represent acceptable banking security.

The Bank does not accept environmental indemnity insurance policies on properties where potential contamination has been identified.

Acceptable deposit sources

The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

Family member gifted deposits

For a gifted deposit to be acceptable, the family member must be one of the following:

• Mother
• Father
• Sibling
• Grandparent.

Required documentation

A copy of our gift declaration form must be provided, to confirm:

• The gift isn’t a loan
• The gift is non-refundable
• The donor won’t have an interest in the property.

A certified copy of the donor’s ID is required. In the event the applicant and family member(s) have different surnames, we require evidence of a family name connection such as a marriage certificate.

Should the gift originate from family living abroad, we require evidence of:

• The funds being available in the family member’s account
• The funds showing in the applicant’s UK bank account.
• How the funds were created/achieved

Builder’s incentives:

Builders’ incentives are acceptable.

Calculation

Builders’ incentives are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Vendor deposit:

Vendor deposits are acceptable.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation.

The loan amount is based on the resulting lower total.

Inter Company Loans

Inter-company loans are an acceptable source of deposit, subject to the following criteria:

• The loan term must not exceed that of the mortgage
• The majority shareholder to mirror across SPV and connected company
• Must be UK to UK company (no offshore companies)
• Loan needs to be repayable and a term agreed with documented loan agreement (copy required to be held on file)
• Rate of interest applied should be HMRC’s ordinary rate of interest (currently 2.25%)
• Any monthly payment to be included in ICR calculation
• Connected company not to have any interest or charge over the Bank’s security.

Unacceptable deposit sources

The following forms of deposit/incentive are not acceptable:

• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Applicants with diplomatic immunity from UK law will not be accepted.

Early Repayment Charges may apply to your customer if they decide to repay all or part of their mortgage early.

Details of the charges can be found in Section 1.9 of the Facility Letter.

A minimum of 12 months employment history is required for all employed / self-employed applicants.

Employed

The latest payslip is required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income.

Self-Employment

The latest annual accounts or SA302/tax calculation with corresponding overview are required where the applicant is a non-portfolio landlord

For portfolio landlords, proof of non-rental, earned income is not required.

For further advances, there is no requirement to prove non-rental, earned income.

Company Directors

Where a company director owns more than 25% of the company shares they must be treated as self-employed and accounts obtained as per the above

Total income will comprise both directors’ remuneration and dividend income.

Applications where it’s confirmed that the minimum EPC rating for the mortgaged property is within band F or band G will be declined unless a valid exemption is in place.

Existing Interbay applicants with a clear six month payment track record will benefit from a reduction of our standard arrangement fee of 0.25%.

Minimum 2 years relevant sector experience

Please refer to your specialist finance account manager cases where your applicant does not have current semi commercial investment experience.

Please refer to ‘Deposit’ section for acceptable deposit sources.

Application fee:

£145, payable at time of application

Arrangement fees:

Please see individual product pages  

Valuation fees will need to be paid by the applicant.

Please see the valuation fee scale

Legal Representation

All applications with Interbay will need a solicitor instructed from our approved panel of solicitors.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the bank will instruct one of the solicitors from the approved panel to act on the banks behalf and the applicant will be liable for both sets of fees.

Joint Representation

The applicant may select a solicitor from our approved panel to act on behalf of the applicant and the bank. Please note in certain circumstance separate independent legal advice may still be required.

Please see our approved solicitor panel and their fees for joint of sole representation.

Applications where all borrowers are first time landlords who are not residential homeowners and/or developers are not acceptable.

Please refer any applicant without either buy to let and commercial investment OR commercial investment experience to your specialist finance account manager.

A property with an element of Flying Freehold can be considered. In all instances where the flying freehold portion exceeds 10%, the case will require approval by a suitably mandated underwriter.

Where an applicant is from outside the EEA they must have been resident in the UK for the last 3 years and have permanent rights to reside in the UK. Proof of visa will be required.

As part of GDPR it is important that all customers and intermediaries are aware of how we use personal data, please select the relevant Privacy Notice below for further details:

• Privacy policy
• Cookie policy

We aim to get electronic proof of identity and address, but if documentation is required, we accept the following:

Identification

• Valid UK/non-UK passport
• Valid UK driving licence*, photocard (full or provisional)
• Valid non-UK passport or national ID card
• HM forces/police warrant card
• Shotgun licence or firearms certificate.

Address

• Valid UK driving licence*, photocard (full or provisional) – if not used as proof of ID
• Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK – includes bank or building society savings book (not Internet printed)
• Current mortgage statement issued by a regulated financial sector firm in the UK
• Utility bill or landline telephone bill (not internet printed and the landline number must be the same as quoted on the application)
• Council tax bill
• A positive voter’s roll result (please include the reference number or printed copy as evidence).

Note:

*In accordance with the DVLA regulations you’ll need to check the expiry date of the photocard driving licence. If the photo has expired, we may not accept it as proof of identity, and therefore other items may be requested.

Affordability is based on rental income.

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

For affordability calculations the rent needs to be sufficient to meet the minimum ICR requirements determined by InterBay:

For owner occupied commercial applications the commercial rent / income will be assessed using the following but will be excluded when calculating the maximum loan available.

The interest rate used in the ICR calculation is determined by the selected product as follows:

The ICR will be calculated using a stressed rate of 5.0%, or the initial pay rate whichever is higher.

The minimum remaining lease term must be at least 65 years unexpired on the lease after the end date of the mortgage term.

InterBay will consider lending to business applicants providing they meet the following criteria:

• The business must have a UK registered address and must operate entirely within the UK;
• Maximum term 30 years (maximum guarantor/director age 85 years at the end of the term).
• In all applications, Personal Guarantees will be requested.
• For company applications where the shareholding is owned by another limited company, it will be necessary to trace back to the ultimate beneficial owners and obtain the relevant personal guarantees.
• For trading limited companies A floating charge to be registered against the company in addition to the first ranking charge on the property; Personal guarantees will be required from the directors for 100% of the loan.

For limited personal guarantees please refer to your specialist finance account manager.

Please note applicants providing personal guarantees will be required to have independent legal advice which may not be covered under dual representation.

Limited company applications will require all directors to provide a Personal Guarantee for which we require them to have obtained independent legal advice.

Legal advice can be obtained from an independent solicitor or from the same firm that are undertaking the conveyancing on the application, however the same person/s within the firm should not provide independent legal advice as well as completing the conveyancing.

Obtaining legal advice may incur additional costs for the customer and they should contact the acting conveyancer for details of this.

Minimum loan: Refer to product guide

Maximum loan: Not applicable

No maximum loan size

Maximum Property Value: Not applicable

Larger loans considered by referral.

Higher property values considered by referral to your specialist finance account manager.

InterBay calculates the loan to value based on the lower of either the purchase price or the property value.

The maximum loan size will vary by product; please check the relevant product guide for further information.

LTV limits are based on the net loan amount exclusive of any fees.

Properties located in mainland England, Wales are acceptable.

Applications in the following locations will not be considered:

• Northern Ireland
• Channel Islands
• Isle of Man
• Sark, Alderney, Herm
• Scotland

Commercial Investment

No minimum income for applicants however we will complete a plausibility to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

Commercial Owner Occupied Trading Business:

Re-mortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process.
• New build properties excluded.
• All other standard criteria apply.

Applications for portfolios only need to meet our minimum loan of £150,000 and consist of the same security. For more information speak to your specialist finance account manager.

Please refer to our product guide for minimum loan sizes.

All UK and EEA nationals are acceptable providing they have a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

Offers will be valid for 3 months.

An offer extension may be considered (up to a maximum of 6 months from original valuation) on request from either a broker or a solicitor with confirmation that there have been no changes in the applicant’s circumstance.

Customers are able to make overpayments on their mortgage, should they wish to do so, 10% of the balance can be repaid in any 12 month period, without notice and without incurring ERC.

Customers should read their Mortgage Offer for full details.

Personal guarantees will be required from the directors for 100% of the loan.

InterBay mortgages are not portable.

Remortgages will be considered where the security property has been owned for less than 6 months where the property has recently been inherited or subject to:

• The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:

• A schedule of works and evidence of expenditure
• Confirmation that works have been completed to a suitable standard
• Any necessary consents have been obtained
• The property should be marketable and mortgageable.
• In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this isn’t available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
• New build properties excluded
• All other standard criteria apply.

• Interest Only
• Capital and Interest

All UK and EEA nationals are acceptable subject to a 3 year UK residential history. Non EEA Nationals must have been resident in the UK for the last 3 years and have permanent right to reside in the UK.

Expats are not acceptable.

We are unable to consider any property that may have a restricted occupancy clause within the planning permission, for example a property that can only be occupied for a maximum of 11 months in any one year.

Similarly, properties that can only be used for retirement or sheltered accommodation are not acceptable. This is the same for any property where a planning restriction (e.g. agricultural restriction) effectively limits a property’s appeal on the open market.

InterBay will consider holding a retention as is deemed appropriate based on the valuer’s comments.

On some occasions we may require a specialist’s report for the property, these most commonly comprise of:

The most commonly requested reports are:

• Timber and damp (T&D);
• Electrical;
• Trees;
• Cavity Wall Tie;
• Mining Report 

We will consider a property that contains solar panels. The conveyancing solicitor would need to review the lease, if there is anything within the lease that can have an effect on the security property then we may not be able to consider your application. This could be an overriding interest in the property, or they have a right to take these solar panels down at any time, as this may cause damage to the property if they choose to do this.

Where ongoing movement is reported, or a period of monitoring is recommended by a surveyor, we are unable to lend. To determine this we may request a structural survey or building survey of the property, produced by a member of the following bodies:

• The Institution of Structural Engineers (istructe.org.uk)
• The Institution of Civil Engineers (ice.org.uk)
• The Royal Institution of Chartered Surveyors (rics.org)

The report should be addressed to the applicant(s) and InterBay, or otherwise confirmed by the surveyor that the applicant(s) and InterBay can have reliance upon the report.

Freehold 

• Acceptable

Leasehold 

• Minimum remaining lease term is 65 years unexpired at after the end date of the mortgage term.

Flying Freehold 

• Up to 10% acceptable subject to valuers comments
• Underwriters discretion for flying freehold of greater than 10% of total area.
• The valuer must comment and confirm the total percentage.

Please note, If the title to the property is leasehold and the freehold title is owned by the applicant, a relative of the applicant or a limited company the applicant is a director/shareholder, InterBay will require a charge over both the freehold and the leasehold.

• Minimum term 2 years
• Maximum term 30 years

The following assets are considered unsuitable for lending purposes.

Accommodation, food and recreation assets

• Amusement arcades
• Bingo halls
• Casinos
• Cinemas
• Gentleman’s clubs
• Golf clubs
• Hostels
• Leisure centres, including purpose built gyms
• Mobile home parks
• Night clubs
• Pubs, including repurposed former pubs

Arts, civic and places of worship assets

• Concert halls
• Libraries
• Museums
• Public halls
• Purpose built places of worship and religious properties

Wholesale, retail and trade assets

• Car sales forecourts and showrooms
• Garden centres
• Car washes, including hand car wash
• Petrol filling stations, both current and former

Health and social work assets

• Care homes or residential institutions
• Hospitals

Manufacturing and processing assets

• Heavy industrial units
• Scrap yards and vehicle decommissioning units
• Waste processing and recycling centres

Rural and animal assets

• Agricultural property
• Catteries and kennels
• Equestrian centres
• Rural or remote properties

Other unacceptable assets

• Car parks
• Telecommunication masts/equipment

The following forms of deposit/incentive are not acceptable:

• Cryptocurrencies - any deposit sourced via cryptocurrencies e.g. bitcoins, is not accepted.

Please see Vendor’s deposit, family purchase, and family gifted deposit for further information on these scenarios.

Unencumbered properties do not have current mortgages or loans secured on them. When raising funds on an unencumbered property, applications should be submitted on a remortgage basis.

ID and Residency documents

If originals are not available, we are able to accept certified copies of any ID and Residency documents, subject to the following:

• The documents must be certified and dated within the last 3 months by an independent professional; e.g. Broker (if FCA regulated), Solicitor, Accountant etc. and not by an applicant, guarantor or close relative.

Where an applicant has been seen on a face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’
• Where the document contains a photograph it must also be certified as ‘a true likeness of the applicant’

Where an applicant has been seen on a non-face to face basis:

• All submitted documents must be certified as follows ‘I certify this is a true copy of the original’

The name of the person and employer/firm certifying the documents must be clear.

Please refer to our Proof of Name and Address document for full details of our ID and Residency validation requirements.

Supporting Documents

If originals are not available, the following are acceptable subject to the documents being fully legible and the underwriter having no concerns in respect of authenticity:

• Photocopies
• Scanned images
• Photographic images
• Digital images

InterBay retains the right to request original documentation when considered appropriate.

All applications will require a valuation to be instructed via the VAS Panel Management System. The valuation must be instructed within 7 days of the full application (FMA) being reviewed by the underwriter.

In all instances the £145 administration fee is non-refundable.

All valuations are subject to underwriter review.

The value of the deposit must be deducted from the purchase price or value whichever lower and lending based on the lower amount. The deposit must come from the applicants own resources without recourse to additional borrowing.

Purchase from an immediate family member (vendor) at discounted purchase price will be assessed in the same manner as gifted family deposit.

• LTV will be based on the valuation of the property.
• Vendor to confirm they have relinquished all rights to the property and will not continue to reside therein

The reason for the discounted purchase price must be established

Purchase from individual to limited company can be done using a directors loan. These are acceptable subject to:

• The individual is transferring a current/purchasing a new property into a company structure;
• Purchase price is at full market value to ensure tax liabilities are paid in full;
• The individual providing the director loan is a shareholder within the business;
• They are investing in the company by way of a directors loan and it will be included in the subsequent company accounts;
• The difference between the mortgage and the purchase price is covered by the director loan;
• The loan is non-interest bearing.

Interbay will base their lending off the valuation or purchase price whichever is the lower with exception to family discounted purchase.