Residential | R-Z

Lending criteria – residential

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Use the links below for details of our residential lending criteria and help with submitting the right documentation.

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Lending Criteria at a glance

Use our A to Z tool below for details of our residential lending criteria

Use our A to Z tool below for details of our residential lending criteria

  • Where an applicant is currently on, or is to commence, a known period of reduced income, the affordability and overall lending assessment will be based on the “return to work” income details.


    • In order to verify "return to work" income, an employer’s letter, addressed to the Bank, should be obtained confirming when the applicant is returning to work, full income details and working hours.
    • Where an employer’s confirmation is not available further documentation should be obtained such as payslips/P60s/HMRC Annual Tax Year Overview together with information regarding length and nature of employment, proposed number of hours to be worked upon return, savings to subsidise commitments/lifestyle whilst on period of leave.
    • Further information may be required in order to fully assess based on individual circumstances.

    Key consideration will be to ensure that the mortgage is affordable during any period of leave and that affordability continues to be met on a sustainable basis following return to work especially where reduced hours are to apply.

    Maternity/Paternity Leave

    During a period of maternity/paternity leave, statutory and occupational maternity/paternity pay are not sustainable therefore they should not be considered for lending purposes and the above process should be followed. Also, upon return to work, working hours may be reduced, affecting income. In addition, any childcare costs (if applicable) should be incorporated in the affordability assessment.

  • The documents detailed in our Allowable Income Table are used to prove income and status and are based on certain assumptions about the quality and content of the supporting documents. Where the documents provided or the Credit Reference Data do not adequately evidence the facts, we reserve the right to request further supporting documentation.

    Key points to remember:

    • In addition, all customers will need to prove their identity and address, please refer to the Client Identification section
    • All applications will be subject to a credit score
    • We reserve the right for our underwriters to request (at any time) additional documentary evidence to confirm the status of any applicant
    • The bank statements provided must be the latest available and must show the applicant’s salary being mandated
    • Employed applicants must have been employed by their current employer for 3 consecutive months prior to their application, or must have been in continuous employment for the past 18 months with no gaps
    • Self-employed applicants must have been self-employed in the same line of business for the past 3 years. Please note that if the mortgage application is dated more than 12 months from the end of the last trading year, the client must provide, in addition to the required trading accounts, the latest draft trading accounts or a forecast income and expenditure statement produced by their accountant. Please see self-employed policy section for further information
    • If your client has legitimate reasons for being unable to produce any of the required documents, please call our IBC to see if they can obtain approval to accept alternative documents

    Any supporting documents submitted must be certified copies of the original, please do notsupply originals, just in case they go astray in the postal system. Where an individual document has multiple pages, it is acceptable to number each page and verify on the first page the total number of pages.

    See our Allowable Income Table for more details.

  • Mortgage Reserves are no longer available for new mortgage applications, be they Offset or Non-Offset. Customers may still have a pre-existing Mortgage Reserve that they can use but increases to this aren’t available.

    Flexible mortgage customers requiring additional borrowing:

    Customers are able to apply for a further advance.

    Offset customer(s) requiring additional borrowing will be able to either:

    • Apply for a remortgage, selecting an Offset product from the current product range for the total loan amount required
    • Apply for a remortgage to port their existing main mortgage balance to a Ported Tracker at the same interest rate, with additional borrowing taken on a product from our current range.

    Offset customer(s) moving home and requiring additional borrowing on their main mortgage will be able to either:

    • Apply for a new Offset product from the current product range for the total loan amount required
    • Apply for a new loan porting their existing main mortgage balance to a Ported Tracker at the same interest rate, with additional borrowing taken on a product from our current range.

    In all of the scenarios above, any applicable early repayment charge on the existing Offset mortgage will be waived (although other fees may apply, eg an administration fee).

    Please note: Our interest only limit product maximum LTV applies across the mortgage and any reserve that the customer might have.

  • All mortgage applicants are assessed in terms of their rights to reside in the UK, and whether they are currently living in the UK.

    Living in the UK for more than 2 years

    Living in the UK for less than 2 years

    Applicant is UK citizen or has Permanent Rights to Reside (PRR)

    Standard criteria applies

    Maximum 90% LTV. Additional underwriter checks apply*

    Applicant does not have Permanent Rights to Reside (PRR)

    Maximum 90% LTV. Additional underwriter checks apply*

    Available for Premier/Wealth qualifying customers. Maximum 75% LTV. Additional underwriter checks apply*

    *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 be looking to assess  that the applicant intends to stay in the UK. Further documentation may be required to satisfy these checks.  

    Applicants from refugees must not be considered until they have obtained PRR.

  • We are happy to assist with the purchase of your client's property under the Right to Buy (RTB) and voluntary Right to Buy (VRTB) scheme, providing they meet our standard lending policy.

    Our main criteria for RTB are:

    • We can lend up to 95% of the discounted price as long as this does not exceed 80% of the valuers' open market valuation – eg, if your client’s property is valued at £100,000 and the Local Authority are offering a discount of £35,000, the maximum loan we could consider would be £61,700 (95% of £65,000). However, it’s important to note that for product eligibility, the maximum LTV is based on the full market value, so in the same scenario the LTV for product purposes would be 62%
    • Enhanced income multiples can be applied where an appropriate credit score is achieved
    • Only the individual(s) entitled to the RTB may apply
    • Remortgages will be considered subject to certain criteria. Contact our IBC for guidance

    Please note that:

    • Our charge must rank in priority to any charge registered by the Local Authority
    • Flexible mortgages are available but the Reserve will always be set to nil
    • Application fees can be added to the mortgage advance providing the total borrowing does not then exceed 95% of the discounted price
    • We’ll need a Deed of Postponement (DoP) for voluntary Right to Buy applications

    All applications are to be submitted on a full status basis. In addition to the supporting documentation required as per our Requirements Tables, your client will need to provide a copy of the letter from their landlord/local authority confirming the details of their RTB offer.

  • Scottish Surveyor Panel List

    Please see the list below for the Scottish Surveyors who are on our approved panel.

    Woolwich Scottish Panel List

    • e.surv
    • J&E Shepherd
    • Allied (Scotland)
    • Graham & Sibbald
    • Walker Fraser & Steele
    • D M Hall
    • Harvey Donaldson & Gibson

    First Surveyor Group:

    • First Surveyors Scotland
    • Barr Brady
    • Stephen J Ormand
    • Buccleuch John Sale
    • David Adamson & Partners
    • Gabriel & White
    • Torrance Partnership
    • Dixon Heaney
    • Whyte & Barrie
    • Samuel & Partners
    • Hardies
    • Murray & Muir

    Note: In Scotland, it is essential that valuations still be valid when the case completes. Please view the Scottish Valuations residential policy or call 0345 073 3330 for more information*.

  • In Scotland, we will attempt to generate an Automated Valuation (AVM) for properties that fit the Barclays criteria. We will alternatively accept a transcript of the Mortgage Valuation provided as part of the Single Survey report (when the customer wishes to use one), as long as the surveyors are on the Barclays panel. However, AVMs or transcripts do not apply to Scottish New Build properties where we will instruct a valuation as part of the mortgage application process (a survey fee will be payable only for properties above the £2M threshold, please see our Tariff of Charges for further details).

    For more information on Barclays approved surveyors in Scotland please contact 0345 073 3330*

  • We are happy to consider a mortgage for an applicant who has existing properties (whether mortgaged or unencumbered).

    Where the applicants have an existing/second residential property that has not been sold and there is reason to believe is not to be sold before completion (includes where held/to be held on a PTL basis), an application is acceptable subject to a *maximum LTV of 80% applying to the property being purchased providing:

    • If the new property being purchased is for owner occupation
    • The deposit is being funded from their own resources – this may include equity release from any existing properties they own
    • If a detailed schedule of all properties owned is provided – covering addresses, lender details, outstanding mortgage amounts, monthly mortgage payments, current estimated valuation and details of the rental income being received if a property is Buy to Let

    Where any existing property is either unencumbered or is held on a Buy to Let basis, it is acceptable to consider lending up to a maximum LTV of 90%.

    If the other mortgage(s) held are on a Buy to Let (BTL) or Permission to Let (PTL) basis, then the commitments can be ignored. However, you will need to provide documentary evidence to confirm this.

    For Buy to Let Mortgages, you will need to provide one of the following:

    • A copy of the original BTL mortgage offer 
    • A letter from the lender confirming it is a BTL. If they hold any Woolwich BTL mortgages, simply detail the account numbers for us

    For PTL Mortgages you will need to provide:

    • A letter from the lender confirming this

    Please note that additional documentation may be requested to ensure that we are satisfied that the BTL/PTL mortgage payment can be excluded from affordability – eg, a copy of the tenancy agreement.

    Where the original loan can NOT be confirmed on a Buy to Let or Permission to Let basis

    Any existing mortgage or secured loan which has not been evidenced as a Buy to Let/Permission to Let and will not be redeemed on completion of the new mortgage will be treated as follows:-

    • For affordability purposes, the mortgage commitment on second properties will be calculated on a standard repayment basis over the outstanding mortgage term at the pay-rate or our stressed rate, whichever is the higher. Where a credit limit applies to the existing mortgage borrowing then it is this figure, including any undrawn monies, which should be used when assessing affordability.                                                 
    • In addition, a fixed value commitment for each additional residential property needs to be applied to cover all other property costs. This is applied automatically by the system for residential mortgaged properties documented in MSO. Advisers need to add actual costs for non-mortgaged properties. This applies to all other residential properties i.e. second residential homes but not any property confirmed as being on a Buy to Let or Permission to Let

    The maximum borrowing amount allowable will be determined by “verified allowable income” multiplied by “income multiple allowable” less any non-redeemed additional property mortgage balances other than those confirmed as Buy to Let/Permission to Let .

  • No new mortgages will be accepted at the present time on self build mortgages or stage payment projects, this includes demolish and rebuild scenarios.

  • Applicants are regarded as self-employed when they hold more than a 20% share in a company.

    Sole Traders Partners/Directors/Limited Companies/Limited Liability Partnerships/Foster Carers: Applicants must provide a combination of the following documentation as a minimum requirement


    Year 1 (most recent)

    Year 2

    Tax Calculation*

    Tax Calculation*



    Corresponding financial accounts produced by a qualified accountant

    HMRC Tax Year Overview

    Where retained profit or dividends are being used

    Year 1 (most recent)

    Year 2

    Tax Calculation*

    Tax Calculation*



    Corresponding Financial Accounts produced by a qualified Accountant

    HMRC Tax Year Overview and Corresponding Financial Accounts produced  by a qualified accountant.

    Where equity Partner in a LLP:

    A letter from a Finance or Senior Partner confirming level of income


    3 full, consecutive months’ bank or building society statements confirming receipt of income

    LLP with overseas profit

    Where overseas profit is remunerated in Sterling with no exchange from any foreign currency, this income can be considered. To evidence this information, the letter from the Finance Director or senior partner, mentioned above, must also confirm the following:

    • How long the applicant has been a partner in the firm
    • Applicant’s level of Income
    • Jurisdiction where the applicant is based
    • That the applicant is contracted and remunerated in sterling (with no exchange from any foreign currency)

    *A tax calculation is either

    An online print out from the HMRC website showing the breakdown of the customer’s income – customers should be recommended to use this approach


    The calculation or computation submitted by the customer’s account to HMRC, this should be produced via accountants’ commercial software and will need to have the unique HMRC reference number and customer’s name.


    SA302 provided by HMRC – where an online version isn’t available

    Tax Year Overviews should only be accepted where they demonstrate full payment of any tax liability. Where year 2 documentation doesn’t demonstrate this, underwriters have the discretion to request financial accounts. However, any outstanding tax liability must be accounted for when assessing affordability.

    At the discretion of Mortgage Services, if the most recent (year 1) financial accounts or Tax Year Overview aren’t available when verifying income for limited liability partnerships then a letter from a finance/senior partner confirming income can be accepted to support the tax calculation documentation. This can be verified by bank statements.

    It’s not acceptable to rely on tax calculations alone as verification of UK taxable income.

    All supporting documentation provided for the most recent year (Year 1) must relate to a period ending no earlier than 18 months prior to the date of mortgage submission. It is not acceptable to rely on tax calculations alone as verification of UK taxable income.

    If the applicant has an existing business relationship which is managed by Barclays, the Barclays Group has a more comprehensive picture of the applicant’s financial situation. Given this, the application will be considered to be within standard lending policy even if the last trading year end was up to 18 months ago.

    However, if the year end is more than 18 months ago, the applicant must ALSO provide the following:

    • The latest draft trading accounts produced by their accountant covering the period since the last trading accounts were produced


    • A forecast Income & Expenditure document produced by their accountant, covering the period since the last trading accounts were produced.

    Financial accounts must be produced and signed by a qualified accountant who is an Associate or Fellow of one of the following professional bodies:

    • The Institute of Chartered Accountants in England and Wales
    • The Institute of Chartered Accountants in Scotland 
    • The Institute of Chartered Accountants in Ireland
    • The Institute of Chartered Secretaries and Administrators 
    • The Chartered Association of Certified Accountants 
    • The Chartered Institute of Management Accountants
    • The Chartered Institute of Public Finance & Accountancy
    • The Chartered Institute of Taxation 
    • The Association of Accounting Technicians
    • The Association of Authorised Public Accountants 
    • The Association of Chartered Certified Accountants
    • The Association of Independent  Accountants 
    • The Association of Taxation Technicians 
    • The Association of International Accountants


  • Under shared equity schemes the customer owns the property outright (in contrast to shared ownership schemes, where the customer only owns a share in the property), usually with the right to pay off the equity loan in tranches. The customer therefore funds the purchase of the property by way of:

    • A conventional mortgage;
    • a deposit from their own resources and;
    • a “loan” provided by the Scheme Provider, referred to as an equity loan, which should be recorded as a commitment

    The applicant must be funding at least 25% of the purchase price of the property by way of mortgage and their own resources. Applications of up to 85% (subject to product availability) of that part of the purchase price to be funded by the applicant (by way of mortgage and their own resources) are acceptable. Applications must be on a standard repayment basis i.e. NOT interest only.

    The equity loan term must be the same or longer than the mortgage term agreed. For Help to Buy Equity Loans, the equity loan term can be stated as shorter than the mortgage term, as it will be extended in line with the first charge.

    The equity loan interest rate must not exceed 3%.

    Barclays UK MUST be able to take a first legal charge prior to any charge registered by the Scheme Provider.  

    Additional Borrowing 

    Can be considered providing Scheme Provider permission is obtained and all areas of this section of Lending Guidelines are met:

    Scenario Maximum LTV
    Capital raising to repay equity loan in FULL 90% of market value
    Capital raising to buy out co-owners share or partially repay equity loan 85% of {market value less the remaining equity loan amount} 
    Debt consolidation (repayment of the equity loan is not considered debt consolidation for these purposes) 80% of {market value less the equity loan amount} 


    • Product availability is based on the full market value. Please see the loan to value section; lowest LTV takes precedent.
    • The equity loan will usually be a percentage of the current market value;
    • Permission to Let is not to be considered unless there is specific agreement from the Shared Equity Scheme Provider.
    • Any fee/interest payment (current or deferred) associated with the equity loan must be included as a commitment in the affordability assessment.

    *Scottish Government Schemes:

    Barclays supports the following Scottish Governments schemes

    First Home Fund

    This shared equity scheme aims to help first-time buyers in Scotland buy their own home by providing an interest free equity loan of up to, the lower of, £25,000 or 49% of the purchase price:

    • Available for new build and second hand properties:
    • At least one applicant must be a first time buyer;
    • Minimum 5% deposit from own resources;
    • We can only support applications where at least 10% equity loan is being provided. Total LTV must not exceed 85%;
    • The minimum mortgage amount is 25% of the purchase price;
    • The entire mortgage must be on a capital and interest repayment basis.

    Additional Borrowing 

    Can be considered providing Scheme Provider permission is obtained, where required, and all areas of this section of Lending Guidelines are met:

    Scenario Maximum LTV
    Capital raising to repay equity loan in FULL 90% of market value
    Capital raising to buy out co-owners share or partially repay equity loan 85% of market value
    Debt consolidation (repayment of the equity loan is not considered debt consolidation for these purposes) 80% of market value


    • Product availability is based on the full market value.
    • Please see the loan to value section; lowest LTV takes precedent.
    • Permission to Let is not to be considered unless there is specific agreement from the Shared Equity Scheme Provider

    Open Market Shared Equity Scheme

    • Available to first time buyers to assist with the purchase of existing properties on the market. 
    • Standard shared equity requirements as described above are to apply (including minimum 15% deposit from own resources).
    • In certain cases, the Scottish government will retain a small share, referred to as a “Golden Share”, of a property (10%-20%) to prevent full staircasing in areas where first-time buyers find it difficult to purchase properties – e.g. the Highlands where there are few new properties built. This would then allow the government to have first refusal on purchasing the property back at full market price.

    New Supply Shared Equity Scheme

    • Available to first time buyers to assist with the purchase of new build properties. 
    • As with the above open market scheme, standard shared equity requirements apply in addition to acceptance of “Golden Share” where this applies.

    Help-to-buy Scotland

    • Please refer to the help-to-buy section.
  • Under shared ownership schemes, the customer part-owns and part-rents the property from the Scheme Provider under the terms of a shared ownership lease. With shared ownership, the applicant must be buying a minimum 25% share of the property. Purchase applications of up to 95% (subject to product availability) of the discounted purchase price/share of the property being acquired are acceptable with any balance being funded from the applicant’s own resources.

    • Applications must be on a standard repayment basis (ie not interest only)
    • Providers and landlords must be registered and regulated by the Homes and Communities Agency in order for their schemes to be acceptable
    • The Barclays Group must be able to take a first Legal charge against the customer’s leasehold interest in the property and consent given in the usual way for any second charge
    • It is unacceptable for restrictions to be placed on resale of the property, except where these comprise the Scheme Provider having an option to buy back the customer’s share in the property at the full market value for a maximum period of 3 months, such that if the Scheme Provider does not wish to exercise the option to buy back, the lender can staircase to 100% (if necessary) and otherwise sell the property on the open market without any further restriction applying (provided always that the operation of any such resale provision does not prejudice in any way the operation of the mortgagee protection provisions in the lease
    • Borrowing must be by way of a Barclays Residential Mortgage product  
    • The lease should be in the standard form produced by the Homes and Communities Agency incorporating a Mortgage Protection Clause

    Additional Borrowing can be considered where consent has been obtained from the scheme provider to purchase an additional share in the property provided we are not lending above 85% of the current market value of the share which the customer will own after staircasing. Where the customer is applying for additional borrowing to purchase the property outright (ie 100% staircasing), then a maximum LTV of 90% can be considered (subject to product availability).

    Re-mortgages from another lender are acceptable provided agreement from the scheme provider is obtained and all areas of this section of lending guidelines are met i.e. the new mortgage should be for the same amount (90% for like-for-like remortgages), unless staircasing or additional borrowing is required to buy-out a co-owner.

    Products under the NewBuy and Help to Buy schemes are not available for any Shared Ownership proposition.
    If the scheme does not meet all the above criteria then Barclays will not lend.

  • 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.

  • Transactions at undervalue can occur where a property is being or has been acquired by way of a Deed of Gift, or for less than the full market value. For such a transaction to be acceptable to Barclays there must be an existing associated relationship with the Vendor, eg, child from parent, re-mortgage from joint to sole names, or similar circumstances.

    Where an Advisor is aware that a mortgage request is to be a transaction at undervalue, Mortgage Services must be notified at initial application stage to ensure the scenario is acceptable based on the above relationship requirements.

    In such cases problems may arise under the Insolvency Act 1986. Under Section 339 of the Insolvency Act 1986, a trustee in bankruptcy has the right to apply to the Courts to set aside a transaction at an undervalue, if the transferor subsequently becomes bankrupt within 5 years of the date of the transfer.

    The period during which the transfer can be set aside is reduced to 2 years if a Declaration of Solvency is obtained at the time of the transfer and the transferor does not become insolvent as a result of the transaction.

    Where it is confirmed that the applicant is purchasing their property at an ‘undervalue’ as defined above, a minimum deposit of 5%, based on the lower of valuation or discounted purchase price, must be provided from the applicant’s own resources. It must be confirmed that the property being bought is not that being sold by a dependant relative who will then remain in the property after the sale takes place. If this is the case, then the application must be declined.

    The above deposit requirement does not apply to Springboard Mortgage transactions where a minimum 5% deposit is required based on lower of valuation and discounted purchase price with a further 10% cash deposit to be held in line with standard requirements applicable to a Springboard Mortgage Product.

  • Customers can appeal against Valuations only when there is more than a 25% variance between the customer’s estimated value and the actual valuation provided by the Bank’s nominated valuer. This applies to both Residential and Buy to Let cases.

    Appeals can only be considered when submitted against a physical valuation (i.e. not an AVM).

    If your customer wishes to appeal the valuation in line with the guidance above, you will need to contact your Barclays Support Team or email brokersupport@barclays.com. An appeals form will be issued and you will be required to supply 3 comparable properties sold in the last 6 months. 

    Please note there is no valuation appeals process for existing Barclays customers looking to remortgage.

  • To be able to lend on a property, Barclays requires a valuation to be carried out. When you apply for a Barclays mortgage, the valuation type depends on whether your mortgage will be on a residential or Buy to Let basis.

    The mortgage valuation is our standard report for all residential applications and includes a description of the property, an opinion of the market value of the property as at the date of inspection, and an estimate of the current cost to reinstate the property in its present form (where appropriate).

    It’s important to remember that the mortgage valuation is a report which is primarily for Barclays’ purposes and confirms whether the property is suitable security for a mortgage – it is not a survey. As such, we ask that all clients consider instructing a separate survey to provide them with a more detailed assessment of the condition of the property, especially when an AVM has been accepted for lending purposes.

    Your client may wish to contact Countrywide Surveying Services on 0800 012 6995, e.surv Chartered Surveyors on 0800 169 9661, or any other provider to discuss the different survey options available. More information on the types of survey available can be seen found on the ‘Home Surveys’ section of the Royal Institution of Chartered Surveyors website.

    Please note that if your clients do instruct their own survey, this will be a separate contract between them and their chosen survey provider with separate fees applying. Barclays will always rely on the mortgage valuation for the purpose of agreeing the mortgage.

  • We’ll accept either a Vendor Gifted Deposit or builder’s cash initiatives as part funding of the deposit provided that:

    • The maximum amount of any gifted deposit or incentive is capped at 5% of the lower of the full purchase price or valuation
    • The maximum LTV for applications with any such builder’s cash incentive is restricted to 85% 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 10% being sourced from the applicant’s own funds
    • With Vendor Gifted Deposits where the property is not a new build, the applicant must also provide a minimum 10% personal stake increasing by the relevant amount where loan to value restrictions apply
    • The deposit/cashback must not have to be repaid and the vendor/builder must not intend to register a charge against the property
    • Deposit monies (including gifted deposits) must be controlled by the solicitor