Criteria guide

Houses, flats, blocks of flats, multiple units on one freehold, new-build, converted during past two years 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 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.

Applicants with mortgage/rent arrears in the last twelve months are not acceptable.

Applicants with a County Court Judgment (CCJ) or default of any amount in the last three years will not normally be considered however, please speak to your specialist finance account manager to discuss further.

Applicants who have previously been repossessed or have been subject to an Individual Voluntary Arrangement (IVA) or are discharged bankrupts must be referred to your specialist finance account manager.

The restrictions may not (product specific) apply in the following circumstances:

• 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.

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

If one of multiple applicants/directors is outside of these limits, please refer to your specialist finance account manager.

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 re-mortgage applications. The amount and purpose of the capital raising should be provided on the application and will be reviewed by our underwriting team.

Where the valuation is returned with noted uncertainty regarding the building’s cladding or external wall system, an EWS1 certificate will be required for review.

Buildings with A3 or B2 certificate classification are unacceptable.

InterBay consider property postcodes for this reason on a case by case basis and taken into consideration with the OSB Group portfolio.

If there is a considered concentration risk within a certain postcode, it may be subject to review at underwriting stage.

Legal Representation

Solicitors from our approved panel will need instructing on all applications.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the applicant will need to choose from our 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.

Details of when convictions are classed as being spent can be found here

Eligible Applicant Types

All applicants must pay UK Tax.

The following applicant types can be considered:

Limited Company/LLP Applications

All directors/designated members must be included on the application. Individuals who are not directors/designated members should not be included on the application.

A satisfactory business search must be obtained on the limited company/LLP to understand the ownership structure and any elements which may impact the underwriting assessment.

A purchase by an individual from their own limited company or between two limited companies with the same owners/directors must be referred.

Beneficial owners must be referred.

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.

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) on or prior to completion. A copy of TR1 registration will be required prior to offer.
• New build properties excluded.
• All other standard criteria apply.

Unacceptable deposit sources

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

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:

• Spouse/civil partner.
• Parents (including step-parents).
• Grandparents.
• Siblings (brother/sister).
• Daughter/son.
• Aunt/uncle.

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.
• £20k Only signed gift declaration form is required.
• £20k to £50k Gift declaration form and evidence of deposit (a recent bank statement or equivalent).
• £50k Gift declaration form, evidence and identity of donor (a recent bank statement or equivalent and certified copy of a valid passport/driving licence.

Should the gift originate from family living abroad (considered on a case by case basis), we require evidence of:

• The funds showing in the applicant’s UK bank account.
• For information on Intercompany loans, please click here

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 accepted.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation. The loan amount is based on the resulting lower total.

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 either in the offer documentation or within our product guide.

A minimum of 12 months employment history is required for all employed / self-employed applicants. If your applicant falls outside of this, please refer to your specialist finance account manager.

Please refer to our Essential submission checklist for our requirements.

Properties must have an Energy Performance Certificate (EPC) rating of E unless the applicant can evidence a qualifying exclusion or exemption certificate.

Standard property – First time landlords acceptable.

Complex property – Minimum of 2 years sector experience.

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 fees:

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

Applications where all borrowers are first time buyers 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

Flats in blocks must be of modern construction.

Maximum number of floors accepted as standard:

• Outside of London: 10 (plus ground floor).
• Within London: 20 (plus ground floor).

High rise blocks outside of standard criteria may be considered on a case by case basis as an exception at our discretion.

This is subject to the valuer confirming that the position of the flat within the tower block doesn’t detrimentally impact on marketability.

If the property on which we’re lending is on the fourth floor or above, the property must have a lift.

Ex-local authority flats:

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

Basement flats can be considered on a case by case basis.

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

A property with an element of Flying Freehold can be considered. Where the flying freehold portion exceeds 10% of overall floor area please contact your specialist finance account manager.

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.

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.

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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 a property with up to and including 6 bedrooms, the applicant is to provide the Group’s Solicitor with sight of a valid HMO licence in the applicant’s own name, or undertake to obtain a valid HMO licence in their own name within 30 days from completion (or 60 days from completion if the applicant already holds a valid HMO licence on another property).

For all refinance applications, prior to completion the Bank’s Solicitor must be provided with a copy of the Local Authority HMO Licence confirming that the borrower is the licence holder. No Funds will be released until the Bank has been sent a copy of this licence.

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

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

Valuations:

A physical valuation will be sourced from Connells or an in-house valuer and will be undertaken on a comparable basis.

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance. For example, Single Room minimum floor area of 6.51 sq m and Double Room minimum floor area of 10.22 sq m (excluding areas where ceiling height is less than 1.5m).

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

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. The applicant and property are required to have the correct licensing and planning in place prior to instructing valuation.

Confirmation of appropriate planning consent being in place will be required prior to release of funds.

For purchases where the property has 7 or more bedrooms, a copy of the licence in the applicant’s own name or evidence that the applicant holds a licence on an alternative property must be received prior to release of funds.

For all refinance applications, prior to completion the Bank’s Solicitor must be provided with a copy of the Local Authority HMO Licence confirming that the borrower is the licence holder. No Funds will be released until the Bank has been sent a copy of this licence.

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

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

Valuations:

All large HMOs will be valued on an investment basis.

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance. For example, Single Room minimum floor area of 6.51 sq m and Double Room minimum floor area of 10.22 sq m (excluding areas where ceiling height is less than 1.5m)

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

Certification

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 and/or FCA number
• 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 [full name of certifier] confirm this is an accurate copy of the original.’
• Where the document contains a photograph the certification must also include ‘and the photo is a true likeness of the person concerned.’

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

• All submitted documents must be certified as follows ‘I [full name of certifier] confirm that this is an accurate copy of the original.’
• ID and residency documents must be certified individually. All certified documentation is valid for a period of 3 months from the date of certification.
• For more information on our validation requirements for supporting documents, click here.

Supporting Documents

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.

Identification

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

Identification:

• Valid UK Passport
• Valid Non-UK Passport (Right to Reside required)
• Home Office Travel Document with accompanying Permanent Resident Permit
• Resident Permit (issued by Home Office) front & back required
• Valid UK Photo card Driving Licence* (full or provisional)
• HM Revenue & Customs correspondence - (not P2, P45 or P60)
• DWP letter confirming entitlement to pension

Address:

• Bank Statement/Building Society Statement/Credit Card Statement
• Most recent mortgage statement
• Valid UK Photo card Driving Licence* (Full or Provisional) if not used as proof of ID
• Local Authority Council Tax / Water Rates Bill
• Utility Bill (gas, electricity, etc.)
• Multi-Media Bill – BT Bill, Sky TV, Virgin Media etc. (landline/Broadband only, Mobile not acceptable)
• HM Revenue and Customs documents/tax summary (not P45 or P60)
• Vehicle Licence Reminder
• TV Licence or renewal/reminder letter
• DWP correspondence (state pension or state benefit books/notification)

All documents must be certified copies or originals unless stated (online copies are not acceptable)

All certified documentation is valid for a period of 3 months from the date of certification

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 will 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.

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.

Intercompany loans

Intercompany loans are an acceptable source of deposit, subject to the following criteria:

• The majority shareholder must mirror across the SPV and connected company.
• The loan needs to be repayable and a term agreed with a documented loan agreement (a copy will be required to be held on file).
• The loan term must not exceed that of the mortgage.
• The rate of interest applied should be HMRC’s ordinary rate of interest.
• Any monthly payment will be included in the ICR calculation.
• Connected company must not have any interest or charge over our security.

Directors loans

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.

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. Shorter, unexpired terms can be considered. Please contact your specialist finance account manager to discuss further.
• Leasehold properties on an interest only basis where the remaining lease term is less than 85 years will be accepted at a maximum 75% LTV subject to product availability.

InterBay will consider lending to Limited companies and LLPs.

The business must have a UK registered address and must operate entirely within the UK

Please refer to the Customer type section for further details.

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 LTV 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 assessment to be confident that the applicants have sufficient income to cover personal expenditure and potential void periods.

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 to point 1 will be considered where it can be demonstrated, that since the date of purchase, significant improvement works which 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, evidence of ownership of the property must be provided by way of confirmation from solicitors, TR1 form or being registered at the Land Registry as owned by the applicant(s), during the application process;
• Copy of the executed purchase contract;
• New build properties are excluded;
• All other standard criteria apply. Where the property has recently been inherited, probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

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 LTV: Please refer to product guide

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 LTV : Please refer to product guide

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.

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.

Expats are not acceptable

• 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 occupied.
• 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.
• The property must be tenanted or owner occupied upon completion.
• For more information on deposits and incentives, please see the Deposit section.

Offers will be valid for 90 days.

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 rolling 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.

InterBay do not consider any applications that are classed as regulated lending. For example:

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

Remortgages will be considered for any legal purpose. Please refer to our Minimum ownership section for details of remortgages within 6 months.

• Interest Only
• Capital and Interest
• Part and Part

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.

Subject to surveyors comments, 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.

We can consider all types of student lets. Please refer to the HMO section.

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.

Sub 30m2 studios can only be considered where they form part of a larger Investment block. 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 20% 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 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
• 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 that are impacted by Japanese Knotweed and have a management category of Class A or B are not acceptable. Class C properties are acceptable subject to a satisfactory management plan being in place. Class D properties are acceptable;
• 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, However please refer to your specialist finance manage. but can be considered if deemed good quality at the underwriters discretion.

The Investment Value will be used for the purposes of calculating Loan to Value.

For multi-unit residential elements we may consider using the Aggregate Value for calculating Loan to Value subject to certain criteria being met.

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.

Our core assets that we consider are retail, industrial, leisure, hospitality, education and medical. We will still consider properties that are not on this list. For more information about our unacceptable property types, please visit our Unacceptable property types section.

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.

Applicants with mortgage/rent arrears in the last twelve months are not acceptable.

Applicants with a County Court Judgment (CCJ) or default of any amount in the last three years will not normally be considered however, please speak to your specialist finance account manager to discuss further.

Applicants who have previously been repossessed or have been subject to an Individual Voluntary Arrangement (IVA) or are discharged bankrupts must be referred to your specialist finance account manager.

The restrictions may not (product specific) apply in the following circumstances:

• 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.

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

If one of multiple applicants/directors is outside of these limits, please refer to your specialist finance account manager.

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 and will be reviewed by our underwriting team.

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.

Legal Representation

Solicitors from our approved panel will need instructing on all applications.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the applicant will need to choose from our 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.

Details of when convictions are classed as being spent can be found here

Eligible Applicant Types

All applicants must pay UK Tax.

The following applicant types can be considered:

Limited Company/LLP Applications

All directors/designated members must be included on the application. Individuals who are not directors/designated members should not be included on the application.

Where the shareholder is a trust, it must meet the standard trust application criteria documented above.

A satisfactory business search must be obtained on the limited company/LLP to understand the ownership structure and any elements which may impact the underwriting assessment.

A purchase by an individual from their own limited company or between two limited companies with the same owners/directors must be referred.

Beneficial owners must be referred.

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.

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) on or prior to completion. A copy of TR1 registration will be required prior to offer.
• 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. If further action is required for other reasons (other than contaminated land), these will be considered on a case by case basis.

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.

Unacceptable deposit sources

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

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:

• Spouse/civil partner.
• Parents (including step-parents).
• Grandparents.
• Siblings (brother/sister).
• Daughter/son.
• Aunt/uncle.

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.
• £20k Only signed gift declaration form is required.
• £20k to £50k Gift declaration form and evidence of deposit (a recent bank statement or equivalent).
• £50k Gift declaration form, evidence and identity of donor (a recent bank statement or equivalent and certified copy of a valid passport/driving licence.

Should the gift originate from family living abroad (considered on a case by case basis), we require evidence of:

• The funds showing in the applicant’s UK bank account.
• For information on Intercompany loans, please click here

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 accepted.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation. The loan amount is based on the resulting lower total.

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 either in the offer documentation or within our product guide.

A minimum of 12 months employment history is required for all employed / self-employed applicants. If your applicant falls outside of this, please refer to your specialist finance account manager.

Please refer to our Essential submission checklist for our requirements.

Properties must have an Energy Performance Certificate (EPC) rating of E unless the applicant can evidence a qualifying exclusion or exemption certificate.

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%.

Application fee:

£145, payable at time of application

Arrangement fees:

Please see individual product pages

Valuation fees:

For Commercial and Semi-Commercial cases, these are collected by our external panel manager.

Legal fees:

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

Applications where all borrowers are first time buyers 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. Where the flying freehold portion exceeds 10% of overall floor area please contact your specialist finance account manager.

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.

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 property.

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 a property with an HMO element up to and including 6 bedrooms, the applicant is to provide the Group’s Solicitor with sight of a valid HMO licence in the applicant’s own name or undertake to obtain a valid HMO licence in their own name within 30 days from completion (or 60 days from completion if the applicant already holds a valid HMO licence on another property).

For all refinance applications, prior to completion the Bank’s Solicitor must be provided with a copy of the Local Authority HMO Licence confirming that the borrower is the licence holder. No Funds will be released until the Bank has been sent a copy of this licence.

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:

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance. For example, Single Room minimum floor area of 6.51 sq m and Double Room minimum floor area of 10.22 sq m (excluding areas where ceiling height is less than 1.5m)

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

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

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

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:

Licensing and planning will be checked during the legal process. The applicant and property are required to have the correct licensing and planning in place prior to instructing valuation.

For purchases where the property has an HMO element of 7 or more bedrooms, a copy of the licence in the applicant’s own name or evidence that the applicant holds a licence on an alternative property must be received prior to release of funds.

For all refinance applications, prior to completion the Bank’s Solicitor must be provided with a copy of the Local Authority HMO Licence confirming that the borrower is the licence holder. No Funds will be released until the Bank has been sent a copy of this licence.

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:

The Bank requests its valuers to consider minimum room size and communal space standards in accordance with current RICS guidance. For example, Single Room minimum floor area of 6.51 sq m and Double Room minimum floor area of 10.22 sq m (excluding areas where ceiling height is less than 1.5m)

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

Certification

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 and/or FCA number
• 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 [full name of certifier] confirm this is an accurate copy of the original.’
• Where the document contains a photograph the certification must also include ‘and the photo is a true likeness of the person concerned.’

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

• All submitted documents must be certified as follows ‘I [full name of certifier] confirm that this is an accurate copy of the original.’
• ID and residency documents must be certified individually. All certified documentation is valid for a period of 3 months from the date of certification.
• For more information on our validation requirements for supporting documents, click here.

Supporting Documents

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.

Identification

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

Identification:

• Valid UK Passport
• Valid Non-UK Passport (Right to Reside required)
• Home Office Travel Document with accompanying Permanent Resident Permit
• Resident Permit (issued by Home Office) front & back required
• Valid UK Photo card Driving Licence* (full or provisional)
• HM Revenue & Customs correspondence - (not P2, P45 or P60)
• DWP letter confirming entitlement to pension

Address:

• Bank Statement/Building Society Statement/Credit Card Statement
• Most recent mortgage statement
• Valid UK Photo card Driving Licence* (Full or Provisional) if not used as proof of ID
• Local Authority Council Tax / Water Rates Bill
• Utility Bill (gas, electricity, etc.)
• Multi-Media Bill – BT Bill, Sky TV, Virgin Media etc. (landline/Broadband only, Mobile not acceptable)
• HM Revenue and Customs documents/tax summary (not P45 or P60)
• Vehicle Licence Reminder
• TV Licence or renewal/reminder letter
• DWP correspondence (state pension or state benefit books/notification)

All documents must be certified copies or originals unless stated (online copies are not acceptable)

All certified documentation is valid for a period of 3 months from the date of certification

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 will not accept it as proof of identity, and therefore other items may be requested.

Intercompany loans

Intercompany loans are an acceptable source of deposit, subject to the following criteria:

• The majority shareholder must mirror across the SPV and connected company.
• The loan needs to be repayable and a term agreed with a documented loan agreement (a copy will be required to be held on file).
• The loan term must not exceed that of the mortgage.
• The rate of interest applied should be HMRC’s ordinary rate of interest.
• Any monthly payment will be included in the ICR calculation.
• Connected company must not have any interest or charge over our security.

Directors loans

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.

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)

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

The minimum remaining lease term must be at least 50 years unexpired on the lease after the end date of the mortgage term. Shorter, unexpired terms can be considered. Please contact your specialist finance account manager to discuss further.

InterBay will consider lending to Limited companies and LLPs.

The business must have a UK registered address and must operate entirely within the UK

Please refer to the Customer type section for further details.

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 vacant possession value of the property.

The maximum LTV 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 assessment on all cases to ensure that the applicants have sufficient income to cover personal expenditure and potential void periods.

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 to point 1 will be considered where it can be demonstrated, that since the date of purchase, significant improvement works which 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, evidence of ownership of the property must be provided by way of confirmation from solicitors, TR1 form or being registered at the Land Registry as owned by the applicant(s), during the application process;
• Copy of the executed purchase contract;
• New build properties are excluded;
• All other standard criteria apply. Where the property has recently been inherited, probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

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.

Expats are not acceptable

• 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 occupied.
• 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.
• The property must be tenanted or owner occupied upon completion.
• For more information on deposits and incentives, please see the Deposit section.

Offers will be valid for 90 days.

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 rolling 12 month period, without notice and without incurring ERC.

Customers should read their Mortgage Offer for full details.

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.

Non-Trading limited companies

Personal guarantees are required from all directors up to 100% of the full loan with the following exceptions:

• Where the loan to value is 50% or less, the requirement for a personal guarantee can be considered;
• Where the loan to value exceeds 50%, a personal guarantee can be accepted to cover the difference between 50% LTV and the amount 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 for any legal purpose. Please refer to our Minimum ownership section for details of remortgages within 6 months.

• Interest Only
• Capital and Interest
• Part and Part

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

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.

For properties where the residential element is not self-contained, these will be considered as full commercial loans.

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.

Subject to surveyors comments, 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.

These can be considered when part of a freehold title.

Commercial lease

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.

Residential tenancies

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 50 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 20% 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 normally considered unsuitable for lending purposes. If you feel there is a compelling rationale for us to consider one of the below asset classes, please speak to your specialist finance account manager.

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 lower of Vacant Possession Value or Investment Value will be used for the purposes of calculating Loan to Value.

In some scenarios consideration may be given to using the Investment Value for calculating Loan to Value subject to certain criteria being met.

For multi-unit residential elements we may consider using the Aggregate Value for calculating Loan to Value subject to certain criteria being met.

Trading properties will be valued on a closed book basis.

All applications will require a valuation to be instructed via the VAS Panel Management System at the same time your application fee and essential documentation is supplied.

Our core assets that we consider are retail, industrial, leisure, hospitality, education and medical. We will still consider properties that are not on this list. For more information about our unacceptable property types, please visit our Unacceptable property types section.

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.

Applicants with mortgage/rent arrears in the last twelve months are not acceptable.

Applicants with a County Court Judgment (CCJ) or default of any amount in the last three years will not normally be considered however, please speak to your specialist finance account manager to discuss further.

Applicants who have previously been repossessed or have been subject to an Individual Voluntary Arrangement (IVA) or are discharged bankrupts must be referred to your specialist finance account manager.

The restrictions may not (product specific) apply in the following circumstances:

• 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.

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

If one of multiple applicants/directors is outside of these limits, please refer to your specialist finance account manager.

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 and will be reviewed by our underwriting team.

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.

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

Legal Representation

Solicitors from our approved panel will need instructing on all applications.

Separate Representation (Lender Only)

Applicants may use their own solicitor, however the applicant will need to choose from our 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.

Details of when convictions are classed as being spent can be found here

Eligible Applicant Types

All applicants must pay UK Tax.

The following applicant types can be considered:

Limited Company/LLP Applications

All directors/designated members must be included on the application. Individuals who are not directors/designated members should not be included on the application.

Where the shareholder is a trust, it must meet the standard trust application criteria documented above.

A satisfactory business search must be obtained on the limited company/LLP to understand the ownership structure and any elements which may impact the underwriting assessment.

A purchase by an individual from their own limited company or between two limited companies with the same owners/directors must be referred.

Beneficial owners must be referred.

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.

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) on or prior to completion. A copy of TR1 registration will be required prior to offer.
• 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. If further action is required for other reasons (other than contaminated land), these will be considered on a case by case basis.

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.

Unacceptable deposit sources

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

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:

• Spouse/civil partner.
• Parents (including step-parents).
• Grandparents.
• Siblings (brother/sister).
• Daughter/son.
• Aunt/uncle.

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.
• £20k Only signed gift declaration form is required.
• £20k to £50k Gift declaration form and evidence of deposit (a recent bank statement or equivalent).
• £50k Gift declaration form, evidence and identity of donor (a recent bank statement or equivalent and certified copy of a valid passport/driving licence.

Should the gift originate from family living abroad (considered on a case by case basis), we require evidence of:

• The funds showing in the applicant’s UK bank account.
• For information on Intercompany loans, please click here

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 accepted.

Calculation

Vendor deposits are deducted from the lower of the purchase price or valuation. The loan amount is based on the resulting lower total.

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 either in the offer documentation or within our product guide.

A minimum of 12 months employment history is required for all employed / self-employed applicants. If your applicant falls outside of this, please refer to your specialist finance account manager.

Please refer to our Essential submission checklist for our requirements.

Properties must have an Energy Performance Certificate (EPC) rating of E unless the applicant can evidence a qualifying exclusion or exemption certificate.

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.

Application fee:

£145, payable at time of application

Arrangement fees:

Please see individual product pages

Valuation fees:

For Commercial and Semi-Commercial cases, these are collected by our external panel manager.

Legal fees:

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

Applications where all borrowers are first time buyers 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. Where the flying freehold portion exceeds 10% of overall floor area please contact your specialist finance account manager.

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.

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

Certification

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 and/or FCA number
• 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 [full name of certifier] confirm this is an accurate copy of the original.’
• Where the document contains a photograph the certification must also include ‘and the photo is a true likeness of the person concerned.’

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

• All submitted documents must be certified as follows ‘I [full name of certifier] confirm that this is an accurate copy of the original.’
• ID and residency documents must be certified individually. All certified documentation is valid for a period of 3 months from the date of certification.
• For more information on our validation requirements for supporting documents, click here.

Supporting Documents

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.

Identification

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

Identification:

• Valid UK Passport
• Valid Non-UK Passport (Right to Reside required)
• Home Office Travel Document with accompanying Permanent Resident Permit
• Resident Permit (issued by Home Office) front & back required
• Valid UK Photo card Driving Licence* (full or provisional)
• HM Revenue & Customs correspondence - (not P2, P45 or P60)
• DWP letter confirming entitlement to pension

Address:

• Bank Statement/Building Society Statement/Credit Card Statement
• Most recent mortgage statement
• Valid UK Photo card Driving Licence* (Full or Provisional) if not used as proof of ID
• Local Authority Council Tax / Water Rates Bill
• Utility Bill (gas, electricity, etc.)
• Multi-Media Bill – BT Bill, Sky TV, Virgin Media etc. (landline/Broadband only, Mobile not acceptable)
• HM Revenue and Customs documents/tax summary (not P45 or P60)
• Vehicle Licence Reminder
• TV Licence or renewal/reminder letter
• DWP correspondence (state pension or state benefit books/notification)

All documents must be certified copies or originals unless stated (online copies are not acceptable)

All certified documentation is valid for a period of 3 months from the date of certification

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 will not accept it as proof of identity, and therefore other items may be requested.

Intercompany loans

Intercompany loans are an acceptable source of deposit, subject to the following criteria:

• The majority shareholder must mirror across the SPV and connected company.
• The loan needs to be repayable and a term agreed with a documented loan agreement (a copy will be required to be held on file).
• The loan term must not exceed that of the mortgage.
• The rate of interest applied should be HMRC’s ordinary rate of interest.
• Any monthly payment will be included in the ICR calculation.
• Connected company must not have any interest or charge over our security.

Directors loans

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.

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.

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

The minimum remaining lease term must be at least 50 years unexpired on the lease after the end date of the mortgage term. Shorter, unexpired terms can be considered. Please contact your specialist finance account manager to discuss further.

InterBay will consider lending to Limited companies and LLPs.

The business must have a UK registered address and must operate entirely within the UK

Please refer to the Customer type section for further details.

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 vacant possession value of the property.

The maximum LTV 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.

Please refer to the Valuation basis section for more information.

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 assessment on all cases to ensure that the applicants have sufficient income to cover personal expenditure and potential void periods.

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 to point 1 will be considered where it can be demonstrated, that since the date of purchase, significant improvement works which 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, evidence of ownership of the property must be provided by way of confirmation from solicitors, TR1 form or being registered at the Land Registry as owned by the applicant(s), during the application process;
• Copy of the executed purchase contract;
• New build properties are excluded;
• All other standard criteria apply. Where the property has recently been inherited, probate must have been granted prior to mortgage application and verification of this must be supplied ahead of the Mortgage Offer being granted. In these circumstances, no minimum period of property ownership applies.

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.

Expats are not acceptable

Offers will be valid for 90 days.

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 rolling 12 month period, without notice and without incurring ERC.

Customers should read their Mortgage Offer for full details.

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.

Non-Trading limited companies

Personal guarantees are required from all directors up to 100% of the full loan with the following exceptions:

• Where the loan to value is 50% or less, the requirement for a personal guarantee can be considered;
• Where the loan to value exceeds 50%, a personal guarantee can be accepted to cover the difference between 50% LTV and the amount of the loan;

InterBay mortgages are not portable.

Remortgages will be considered for any legal purpose. Please refer to our Minimum ownership section for details of remortgages within 6 months.

• Interest Only
• Capital and Interest
• Part and part

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.

Subject to surveyors comments, 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.

Freehold 

• Acceptable

Leasehold 

• Minimum remaining lease term is 50 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 20% 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 normally considered unsuitable for lending purposes. If you feel there is a compelling rationale for us to consider one of the below asset classes, please speak to your specialist finance account manager.

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 lower of Vacant Possession Value or Investment Value will be used for the purposes of calculating Loan to Value.

In some scenarios consideration may be given to using the Investment Value for calculating Loan to Value subject to certain criteria being met.

Trading properties will be valued on a closed book basis.

All applications will require a valuation to be instructed via the VAS Panel Management System at the same time your application fee and essential documentation is supplied.