Residential lending criteria | Barclays Intermediaries

Minimum age: 18

Maximum age at the end of the mortgage term cannot exceed the oldest applicants 80th birthday. 

Our maximum acceptable retirement age is 75, please note when the retirement age exceeds 70 our underwriting team may review the application and require additional information.

Where the mortgage term will go beyond age 75 proof of pension income must be provided, where the applicants income is required for affordability. 

You’ll need to submit documents to prove affordability for the full mortgage term.

Our underwriters will need to see documents that show your client will be able to keep up with their mortgage payments when they’ve retired. 

You’ll also need to confirm that you’ve discussed affordability in retirement with your client, and that they’re comfortable they’ll be able to meet the mortgage repayments until the end of the mortgage term.

We can consider applications on an interest-only basis up until the age of 75. For repayment mortgages, terms may extend beyond 75 either where a younger applicant meets the affordability requirements or where customers can show evidence that they’ll be able to pay the mortgage in retirement.

County Court Judgements (CCJs/defaults)

Adverse credit as detailed below must be declined:

• Any unsatisfied CCJ
• More than 1 satisfied CCJ and the latest is registered within the past 3 years
• Satisfied CCJs totalling more than £200 and the latest is registered within the past 3 years
• More than 3 satisfied defaults* and the latest is registered within the past 3 years
• Satisfied defaults* totalling more than £200 and the latest is registered within the past 3 years
• Any outstanding default, irrespective of amount
• If it is identified that a limited company, in which an applicant has greater than 15% shareholding, has any outstanding judgements totaling more than £5,000

*Includes partially settled defaults which will be referred out to check whether full and final settlement has been made

Applications can be considered where the above is identified but only where documentary evidence of a settled dispute has been provided by the customer.

Over-indebtedness

Where the total unsecured bureau debt (credit cards, overdrafts and loans) is greater than or equal to the gross annual income used in the affordability assessment then the application will be declined. This includes where customers were looking to consolidate the borrowing on to the mortgage.

These standards only apply on drawn balances (unused credit limits are not included). This calculation is automatically applied by the system.

Mortgage or rent arrears

If arrears of more than 1 month have occurred in the past 6 months, and/or 3 months arrears have occurred in the past 2 years, the case is outside lending policy and is to be declined. However, this decision could be changed if there is an acceptable 'technical' reason, or if evidence of a settled dispute is provided and verified by the lender.

If this is the case, please contact our Intermediary Mortgage Experts on 0345 073 3330 * to discuss whether we will be able to assist. Lines are open Monday to Friday 9am-5pm.

Bankruptcy/IVA

It is not acceptable to lend where any applicant is currently bankrupt or subject to a Debt Relief Order (DRO) and/or Individual Voluntary Arrangement (IVA) however, lending can be considered provided any bankruptcy, DRO or IVA was registered more than 6 years ago from the date of submission (and hence no longer appears on the credit reference bureau information).

If your client has a more complex credit history?

You may wish to visit Kensington Mortgages, one of the UK’s leading specialist lenders and a subsidiary of Barclays Bank UK PLC. Kensington offer more flexible lending criteria to help people who may not meet typical lending requirements. Learn more.

It is important that we demonstrate that an applicant can reasonably afford to repay their mortgage before we agree to enter into a regulated mortgage contract with them. The use of income multiples alone is not sufficient to assess the maximum amount we'll lend.

Your client’s affordability will also be assessed using information collected in the 'Affording your Mortgage' section of our application. Here, you'll need to detail their regular financial commitments to show that they can afford to make the required monthly repayments.

There are several factors to take into account when assessing your client’s ability to repay their mortgage

Income assessment 
This should include the applicant’s actual verified income, net of tax and National Insurance. When making a lending decision or contract variation the underwriters can consider various sources of income (please see the requirements table). The underwriter must consider the variability of the income over time to ensure the mortgage payments remain affordable to the customer. Variable (or non-guaranteed income) must be verified over a sufficient period to inform an assessment of sustainability.

Expenditure assessment 
The data captured in the application must take into account committed expenditure (eg credit cards, overdraft, council tax, loans, hire purchase, school fees). Basic essential expenditure and basic quality of living costs will be accounted for in the affordability model.

Monthly mortgage commitment
The monthly repayment must be met from the applicant’s actual or reasonably anticipated income. If the applicant intends to repay from resources other than income, reference to information given by the applicant must be given on the application form.

For repayment mortgages
The monthly repayment used in affordability must be calculated on a capital and interest repayment basis. This should be based on the applicant's current affordability rate or pay rate, whichever is higher. This should also be based on the term of the mortgage or until the applicant is 70, or at the normal retirement of the principal applicant (main income earner), whichever is sooner. For any repayment mortgage term greater than 35 years and up to 40 years, a maximum term of 35 years would be applied for affordability purposes.

For interest only mortgages
The monthly repayment used in affordability must be calculated on a capital and interest repayment basis at the current affordability rate or pay rate, whichever is higher. This should be over an assumed term of 25 years or until the applicant is 70 or at the normal retirement of all applicants, whichever is sooner. Please note, for interest only mortgages the maximum term is 25 years. Where income into retirement from any applicant is required to meet affordability, it is not acceptable to lend on an interest-only basis.

Second or subsequent properties
Second or subsequent properties: commitments in the form of mortgage payments on second properties, other than those on properties confirmed as Buy to Let or Permission to Let properties, will be automatically applied on a standard repayment basis over the outstanding mortgage term at the current affordability rate or current payment amount, whichever is the higher when assessing affordability.

Where a credit limit applies to the existing mortgage borrowing, then it is this figure, including any undrawn monies, that should be used when assessing affordability.

In addition, a fixed-value commitment for each additional mortgaged residential property held is applied by the system to cover all other costs – this only applies to other residential properties, i.e. second residential homes, but not any property confirmed as being on a Buy to Let or Permission to Let basis.

The running costs (e.g. home insurance, utilities and council tax) of any residential unencumbered properties need to be included in the affordability assessment – please manually enter figures on the Commitments screen.

Buy-to-let/ Permission-to-let properties: Commitments in the form of contractual monthly mortgage payments on background buy to let/ permission to let properties will be applied automatically.

Remaining disposable income
The applicant’s 'disposable income' – ie, their monthly income after accounting for regular commitments as detailed above, must be sufficient to cover all other general living expenses, eg food, clothing, utility bills, hobbies.

Disposable income requirements are set by Barclays and must be met in all instances. Where these levels of disposable income are not realised, the application will be declined.

 A full personal credit check will be undertaken on each applicant.

Applications for the purchase of residential properties that will be occupied by a dependant relative of the applicant are acceptable under lending standards.

If the property being bought is being sold by a dependant relative who will then remain in the property after the sale takes place, the application must be declined.

Any dependent relative must be disclosed on the application as a financial dependent.

Any dependant relative must be occupying the property rent-free.

Any persons aged 17 or over who are not party to the mortgage but are, or will be, occupying the property during the mortgage term must be declared on the application as an occupier.

Where a property is being purchased, applicants are expected to provide a deposit of at least 5%* of the purchase price

*The personal stake may vary depending on specialist schemes or circumstances where loan to value restrictions apply.

The applicants must declare the source and amount of their deposit on the application form. Usually, the deposit will be from the applicants’ own savings, the sale of their previous property, a gift from relatives or a combination of these sources.

It is not acceptable for applicants to resort to secondary borrowing to fund the deposit, for example, by raising a personal loan. The only exception to this rule is, where the applicant is raising a deposit from the equity in another property.

For all purchase applications the applicant must provide documented proof of the source of the deposit.

Staff working in the UK for embassies, high commissions and international organisations (eg, United Nations) benefit from diplomatic immunity. Mortgage requests from applicants who have diplomatic immunity are outside of lending standards and should be declined.

Mortgage applicants must be first-time buyers who haven’t previously held a mortgage in the UK or abroad. This applies to all applicants for a joint application.

You must always confirm the identity and verify the address of each customer, before you submit an application.  You will need to obtain one form of personal identity and one form of address verification, where the documents must be from different authorities or providers and have not been issued by Barclays. 

For applications where capital is being raised (remortgage with additional borrowing, unencumbered remortgage and further advance) you have seen and taken copies of original ID&V documents. Where any ID&V document includes a photograph and you have met with the customer face to face, you are confirming that this is a true likeness to the applicant(s).

For all other applications we accept either copies of original documents or documents which have been copied by the customer and provided to you electronically (emailed). 

You will not always be required to submit copies of proof of identity and proof of address documents, although you must retain copies as we may on occasion ask for copies to be submitted to us.  You will be notified when the application is submitted whether ID&V documents need to be submitted.

General Notes:

• No document can be used as two forms of identification i.e. as proof of ID AND address
• Only one document can be accepted from a particular authority or provider. e.g. we cannot accept both ID and address proof from the same authority or provider. 
• Documents in alternate name must be supported by evidence of a name change e.g. marriage certificate, deed poll document, civil partnership registration
• Address details must relate to the current residence
• Your customer’s full first name and surname (as a minimum) must be on either the identification or address verification document. The 2nd document must, as a minimum, show their first initial and surname

Unacceptable documents:

The following documents are not acceptable as proof of identity or address verification:

• Barclays issued; Bank, Credit Card or Mortgage Statement
• Expired documents and documents outside the specified timeframes
• Immigration documents and travel documents – these are not a suitable substitute for a valid passport
• Mobile phone or mobile broadband bills
• A print out of latest transactions from the client’s bank is not acceptable as an alternate to a bank statement
• Any passport or ID card without a visible Machine Readable Zone (MRZ)
• Digital bank statements
• Water utility bill
• EU National ID Card (Photo style) Inc. Switzerland
• TV Licence bills

The lists below provide the most commonly used items for proof of ID and address. If using any of these documents, please be aware of their specific requirements. If you hold alternative documentation please contact the Intermediary Support Team via live chat or call 0345 073 3330 for guidance about other acceptable documents or with any queries about the criteria.

Proof of identity:

• Full signed UK Passport with a Machine Readable Zone (MRZ)
• UK Full Photo Driving Licence – A paper counterpart is not acceptable
• UK Full Paper Driving Licence – Old Style
• UK Provisional Photo Driving Licence 
• Full signed Foreign Passport with a Machine Readable Zone (MRZ)
• EU Full Photo Driving Licence Inc. Switzerland
• Northern Ireland Voters Card will be considered for applications originated in Northern Ireland where the applicant is unable to provide any other form of acceptable proof of identity

Address verification:

• UK Full Paper Driving Licence – Old Style
• UK Full Photo Driving Licence - A paper counterpart is not acceptable
• UK Provisional Photo Driving Licence
• EU Full Photo Driving Licence Inc. Switzerland
• UK Bank Statement of Account or Charges from a UK Financial Institution (not Barclays) - must relate to a personal account, be less than 3 months old, contain full sort code and account number or IBAN number and bank statements must show at least one transaction entry. Bank statements from digital banks are not acceptable
• UK Credit Card statement - The statement must relate to a personal credit card account and be less than 3 months old
• Latest itemised UK mortgage statement -  (not Barclays) -  must be less than 12 months old
• Letter or bill from Utility company - Letter/bill must be addressed to the customers residential address. Letter/bill must be addressed to the same property to which the utility service is provided. Must be less than 3 months old. Reference or account number is quoted (Water, Mobile Phone, Mobile Broadband & TV Licence bills are not acceptable)  
• Latest Council Tax Bill - must be for the current tax year, be less than 12 months old, contain the council tax reference number and be addressed to the customers current residential address
• Letter from HM Revenue and Customs - must be less than 12 months old. HMRC Letters issued with the sole purpose of confirming a National Insurance Number, P45, P60 and P91T are not acceptable
• Government Benefits Entitlement Letters – must be less than 12 months old
• Local Authority or Housing Association Current Tenancy Agreement - incorporating applicants name and address (tenancy agreement from private landlord not acceptable)
• Postal Re-Direct Notification – issued by Royal Mail to current address and less than 3 months old

We can accept the following documents the customer has printed from the relevant secure internet site.

• UK Bank Statements – (not Barclays) Statements from digital banks are not acceptable
  
• UK Credit Card Statements - from another provider (not Barclaycard)
  
• Utility Bills (Gas and Electric – but excluding Water, Mobile Phone, Mobile Broadband & TV Licence bills)
• UK Mortgage Statement – (not Barclays)

These can only be accepted alongside the following ID documents:

• UK/EU/Foreign Passport; or
• UK/EU Full Photo Card Driving Licence; or
• UK Provisional Photo Card Driving Licence
• UK Residence Permit

The name and address on the above ID document MUST match the name and address on the internet printed address verification document. If the customer does not have the above ID available or if the name and address do not match – you CANNOT accept prints from the internet.

We can only issue a mortgage offer once all proof of identity and address requirements have been successfully completed for all clients

If the bank statements are from the internet (i.e. screen shots or print offs from internet banking websites/applications) then they are acceptable if either (1) they have been stamped and certified by the issuing bank or (2) the statements show the sort code, account number and the applicant’s full name (or this information can be seen elsewhere and cross-referenced to full bank statements).

Mortgage Boost (Joint Borrower Sole Proprietor) is a proposition that lets you be named as a mortgage applicant, even if you’re not also a legal owner of the property.

Conditions

• Available in England, Wales, Scotland and Northern Ireland
• All proprietors must also be borrowers
• All non-proprietor borrowers who live (or will live) in the mortgaged property must sign an occupancy form
• All non-proprietors must take independent legal advice that is evidenced by a solicitor's letter
• Where the proprietor has an existing residential property that isn't being sold, the maximum LTV is 80% (residential only)
• All other standard LTV limits apply
• All borrowers must sign the property's mortgage deeds
  

Exclusions

• Not available on our Family Springboard, Right to Buy, First Home Fund or Help to Buy schemes
  

Criteria

This facility is available for Barclays Residential Mortgages and Openplan Offset products, available via all channels. In cases where this arrangement is required, the following must be adhered to:

• The applicants must clearly state the requirement for this arrangement and the name of the sole property owner on the application form in the ’Additional information‘ section
• The borrower who is not named on the Title should sign an occupancy form if living in the property
• All borrowers must sign the Mortgage Deed
• It is mandatory that any borrower/s not named on the Title to the property obtain independent legal advice. This is to be confirmed to
• Mortgage Services by the solicitor providing the advice by returning our standard ILA documentation before any completion monies are released
• Joint Borrower/Sole Proprietor is not available with Help to Buy
• This arrangement can only be made where one of the joint borrowers is not also going to be a legal estate holder, ie will not be on the title deeds. Under no circumstances can a mortgage be agreed where any party named on the title deeds is not also going to be a mortgage borrower.

All other elements of Standard Lending Policy are to apply.

Notes:

• If the non-proprietor has any existing residential mortgage commitments (ie not BTL/PLT) these must be taken into account in the affordability assessment. Calculations should be made on a standard repayment basis over the remaining mortgage term at the current pay rate or stressed rate, whichever is higher
• Products under the NewBuy scheme allowing the maximum LTV to be increased to 95% on new build purchases in England for specific participating builders are available under this borrowing structure for the purchase of principal residence of named occupier/s
  

For intermediary use only.

The maximum number of borrowers allowable is 4. Where there are 3 or more applicants, the Barclays Group will use only the 2 highest incomes when applying income multiples and assessing affordability. All financial commitments from all applicants will be taken into account when assessing affordability.

Only 2 borrowers are allowed for Openplan Offset Mortgages.

All mortgage applications will be assessed in terms of length of time living in the UK and rights to reside. There will potentially be further checks dependent on the application LTV.

*Additional checks

• All applicants will be asked to provide three months’ bank statements and three months’ payslips, showing salary paid in the UK to the applicant’s own bank account
• Our underwriters will look to confirm that the applicant intends to stay in the UK, so more documents may be needed to show this
• We’ll need proof that money is available to pay the deposit

We can’t consider applications from refugees until they’ve got a permanent right to reside in the UK.

Depending on the circumstances of your client's application, supporting documents may be required for the mortgage to be assessed and underwritten. By providing the documentation we need at the outset you’ll help us make the experience for you and your client as smooth and efficient as possible.

Submitting applications via MAX will enable us to provide the best possible service.

For details of documentary requirements for employed income, please see Criteria and Packaging Guide [PDF, 790KB].