Owner Occupied Criteria

CT IPS

Other Criteria

Applicants – maximum

Max 4 applicants.

Applicants – residency

All applicants must be resident in the UK and have permanent leave to remain. EU and Swiss nationals are acceptable. Non-EU/Swiss nationals must have held the permanent right to have lived and worked in the UK for the last 36 months as well as the right to remain. In these cases evidence will be required.

Eligibility

The client must meet one or more of the following:
1.be a high net worth applicant as defined by the Consumer Credit Act. Client must provide a signed declaration made by the borrower, which is to be confirmed by a solicitor acting for the borrower and an accountant’s certificate to meet this test to the effect that (for the previous financial year): either the borrower’s net income after tax and national insurance was at least £150,000;
or the borrower’s net assets exceeded £500,000 excluding any value locked up in the primary home, certain life assurance policies or any pension provision.

2.be using the loan for a commercial purpose. The borrower must demonstrate that the proceeds of the loan are to be used “wholly or predominantly for the purposes of a business”.

Employment Status

Employed: We will accept most employed applicants in principle. If they are still within a probationary period this is acceptable provided the mandate holder is satisfied that the applicant can meet their current obligations.

Contract based employment: requires a contract in place at time of application. If there is less than six months left to run on the contract, the mandate holder must be satisfied of the future longevity of the employment.

Self-Employed applicants: acceptable if they can demonstrate that their business has been trading profitably for a minimum of 12 months. This 12 month period is not required if the applicant has converted to a self-employed basis (with at least 12 months continuous employment) performing the same role in the same company or working in a sector that has significant volume of contract workers.

Retired applicants: we will accept retired applicants who have demonstrable income e.g. private pension and a credible repayment strategy.

Students and Unemployed applicants: we will accept applicants with employment status of unemployed and students as part of a joint application where the other applicant meets the self-employed or employed status criteria.

Income

There are no restrictions but applicants must have demonstrable income and a suitable repayment strategy. Castle Trust will assess if the income is sustainable to support the combined loan.

Property Types – acceptable

General Houses (terraced, detached, semi-detached)
Bungalows
Leasehold flats and maisonettes (purpose built or converted) with unexpired lease terms in excess of 81 years at maturity of the loan
Commonhold property
Flying Freehold up to 15% of the size of the property
Studio flats by referral only
Blocks of flats: Castle Trust applies maximum limits per block per Customer as follows: Up to 7 flats: Limited to 1 flat
8-50 flats: Limited to 25% of the flats up to a maximum of 12 flats
Blocks of more than 50 flats: Limited to 12 flats plus 10% of the number of flats in excess of 50 e.g. for a block of 200 flats, the limit would be 27 flats (12 + 10% of 150).
Flats above 6 floors i.e. 7th floor upwards
Properties above commercial property (considered on a case by case basis)
New build properties (built or converted within the last two years) or any property being purchased from a developer
Self builds (subject to a valuation and structural survey report)
Leasehold properties with an unexpired lease term of less than 81 years at maturity of the loan are considered on a case by case basis

Property Types – unacceptable

General Freehold flats/maisonettes
Flying Freeholds above 15%
Mobile homes
Houseboats
Properties with agricultural restrictions (farms/ crofts)
Multi-occupancy properties (bed sits and B&Bs)
Work units
Ex-local authority properties still within their pre-emption period

Property Type – acceptable construction

General Standard brick and breeze block construction
Stone
Roof Types Standard roof construction from slate
Standard roof construction from tile
Standard flat roof
Thatch considered on an individual basis

Property Type – unacceptable construction

General Laing Easi Form
Concrete (No Fines, Cheshire Brine, Mundic, Precast Reinforced Concrete (PRC))
Log
Single Skin
Timber Frame (period properties considered on an individual basis)
Cross wall construction

Roof Types

Felt flat roof