The most common reason for experiencing issues when keying additional borrowing is exceeding the maximum loan to value (LTV) for the requested borrowing type. This table confirms the maximum LTV limits for additional borrowing types.
If more than one type of borrowing is applicable to the application, the lowest LTV limit will apply.
| Acceptable loan purpose | Maximum LTV | Additional information | |
|---|---|---|---|
|
Non-structural home improvements |
85%* |
This includes boiler replacement, new kitchen or bathroom, replacing double glazing or central heating installation. | |
| Structural home improvements | This includes internal wall removal, extending a property, major roof works or a new staircase. | ||
| Buy final share in shared ownership |
Please key as a shared ownership application on the loan requirements screen of NFI Online. |
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| Buy additional share in shared ownership | |||
| Buy freehold title or new extended lease |
Please key the new lease term on the application, for example, if the current lease is 55 years but when completed it'll be 150 years, key 150 years. Please contact us for shared ownership applications. |
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| Buy a share in the freehold |
This isn't allowed on shared ownership. | ||
| Buy land to extend security |
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| Buy out partner's interest (non-borrower) |
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| Buy land or property separate from the security |
Borrowing to buy a property/land that'll then be let out isn't acceptable This isn't allowed on shared ownership and right to buy (within the discount clawback period). |
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| Repay Help to Buy Equity Loan |
A Help to Buy Equity Loan (including Scottish First Home Fund) must be repaid in full and no other additional borrowing can be requested as part of the remortgage application. If the LTV doesn't exceed 80% this should be keyed as 'Pay off second charge' on NFI Online. |
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| Other personal consumption |
This includes: holiday, car or school fees. We don’t lend for business purposes. This isn't allowed on shared ownership and right to buy (within the discount clawback period). |
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| Remortgage with additional mortgaged properties in the background |
This includes second home or buy to let property |
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| Like for like remortgage |
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| Repay unsecured debts |
80%* | This includes credit cards, personal loans or hire purchase. This isn't allowed on shared ownership and right to buy (within the discount clawback period). |
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| Pay off second charge |
Any other equity loan (Not Help to Buy) will be classed as a second charge. This isn't allowed on shared ownership and right to buy (within the discount clawback period). |
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