Residential | L-N
Lending criteria – residential
We understand that high net-worth clients are valuable to you. Our large loans process gives you instant decisions for mortgages over £600,000. You will have access to our senior underwriting team offering more flexibility and discretion for those applications which need a more considered approach. They will also advise you of any supporting documentation that needs to be submitted. To ensure we give you and your client(s) the best possible service there is also a dedicated processing team for large loans.
Call our Large Loans Team on 0333 202 7590 *
Lending can be for any purpose except for the purchase of a timeshare, business-related lending, funding of any stock market trading, gambling or to make monthly mortgage payments.
No discretion applies to this area.
Minimum loan is £5,000 (£200,000 for interest-only applications).
For houses with a loan-to-value of more than 85%, the maximum loan is £500,000.
For flats with a loan-to-value of more than 85%, the maximum loan is £220,000.
Any lending that meets policy rule criteria but where the maximum aggregate amount of residential mortgages outstanding with Barclays for any borrower will exceed £600,000, will be referred for full manual assessment by Barclays High-Value Lending Team (HVLT).
Note: Please refer to our rate sheets and other policy pages, or contact us via web chat or call the Intermediary Support team on 0345 073 3330 for more information.
A property is classified as 'mixed use' if there is any element of commercial use – ie, it is used in part for non-residential purposes, such as a shop, doctor's surgery or office. This includes situations where the property itself is wholly residential but there is a commercial use of adjoining/surrounding buildings or land included in the mortgage security – such as stables or sub-let cottages.
The decision to lend will be based on:
- Whether or not the property is identifiable as a residence
- Whether or not the property is saleable as a residence
- Whether the property is classified as residential under planning legislation
- The value of the property as a residence
All mixed-use properties fall outside of standard policy and will be assessed by an underwriter on their individual merits.
In all cases, the local authority planning classification must be solely residential.
Please note that properties classed as ‘Live/Work Units’ are not acceptable for either Buy to Let or Residential lending.
At least 40% of the property must be used as the applicant's main residence and the remainder must be used exclusively by the applicant for their own business purposes.
Mixed-use properties are limited to 80% LTV and certain commercial uses will not be considered:
- Fast food or sandwich shops
- Care homes
- Caravan Parks
- Working Farms
Mixed-use properties are not acceptable for Shared Ownership/Equity nor Buy To Let.
Further standard lending conditions will apply to mixed-use properties. Please refer to our lending criteria pages for more details.
Barclays' definition of a 'new build' is a property that was first registered 2 or less years ago OR the property is subject to first sale by the developer, regardless of time or any rental usage in the interim. This also applies to newly converted properties. Maximum LTV is 90% for houses and 85% for flats and maisonettes. For remortgaging or additional borrowing the maximum LTV is also 85%.
Builder’s cash incentives are acceptable as part funding of the deposit provided that the following are met:
- The maximum amount of any builder’s cash incentive is capped at 5% of the lower of the full purchase price or valuation
- A maximum of 5% of the full purchase price (or valuation if lower) can therefore be funded by a builder’s cash incentive with the remaining deposit being sourced from the applicant’s own funds
- The deposit/cashback does not have to be repaid and the builder does not intend to register a charge against the property
- Deposit monies (including gifted deposits) must be controlled by the solicitor acting and must not be paid to the seller direct. Where this is not the case the application must be referred to Mortgage Fraud Prevention Team for review. The only exception to this is the payment of any reservation fee, that is less than 2% of the purchase price AND below £10,000 paid to reserve a plot, which can be paid direct.
- In all instances where there is an incentive (financial or non-financial), this should be disclosed to the valuer on the CML ‘Disclosure of Incentives’ form so that they can be taken into account when valuing the property
The following non-financial incentives are acceptable:
- White goods (where not included as standard specification)
- Floor coverings
- Integrated lighting (downlighters)
- Kitchen upgrade, including tiling and worktop
- Bathroom upgrade
- All electric upgrade – ie additional sockets, TV points, etc
- PV (photovoltaic) panels
Please note alternate deposit/incentive requirements apply to the Help to Buy scheme. Please see its individual policy page for further information.
A mortgage offer is valid for a 6 month period from the date the mortgage application is received by our teams.
Purchases on new build properties are often agreed off plan or in the early stages of developmentand completion may take longer than 6 months. Any original offer that does not complete in the 6 month offer validity period may be extended for a further 6 months without re-submitting status documentation and a re-valuation of the property. This will be subject to receiving confirmation that there has been no material change to the customer(s) circumstances since the original application was submitted using the New Build Mortgage Offer Extension Declaration form and the application being assessed against current lending standards with a refreshed credit search. If there has been a material change to the customer(s) circumstances, then a full underwriting assessment must be carried out including a status assessment and possibly selection of a new product. All costs involved will need to be covered by the customer.
If completion has not taken place 6 months from the date of original valuation a reinspection will be required. The applicant must cover the cost of this.
Please be aware that if a customer already owns a property (and they are not selling that property) then our maximum LTV is 80%. Under specialist schemes like Help to Buy a customer will be unable to purchase a new property if they own any other properties (be they residential, BTL or held on Permission to Let) in the background.
Sub-Sales and Reassignment of Sale Contracts
Sub-sales or reassignment of sale contracts/leases occur where a new-build property is currently contracted for a sale to a 3rd party which has yet to be completed. These are acceptable provided:
- The valuer instructed by the Bank is aware of the nature of the transaction
- The LTV is below 70% of the lower of purchase price or valuation
- The total mortgage lending is less than the contracted sale price being paid by the 3rd party
- All deposit funds are evidenced as being from the applicant’s own resources
- There is no family or other relationship between any applicant and the vendor or 3rd party
Any transaction not meeting all of the above criteria must be declined.