As the impact of COVID-19 continues across the UK, we understand the uncertainty it causes for many people.
Please read this supplementary guide for some additional information we may require in the current circumstances.
We’ve answered the questions we have already been asked
by intermediaries but if your question isn’t there – or our answer to your question results in another one – please get in touch and we will be very happy to help. The good news
is that, despite the significant change in the economic environment, Vida has kept virtually all of its flexible lending criteria and is still committed to lending to customers who
are under-served by mainstream lenders.
Let’s work together to help your customers respond to the financial complexity that we all face right now.
Self-employment has increased significantly since
2008 - now up to around 5 million of the UK workforce. But this growing population is finding it more
and more difficult to get a mortgage because of
irregular income patterns, especially during 2020.
As a classic specialist segment and fast growing
sector, this is only likely to be boosted further by a
pandemic that enables people to re-evaluate their
options.
Specialist lenders like Vida assess each individual
on their own merits using experienced underwriters
rather than the ‘computer says no’ approach often
associated with mainstream lenders.
Zero Hours Contracts
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this needs to be referred and may be acceptable by exception subject to at least I year's track record and suitable evidence of earnings. Top slicing not currently accepted where a FTB or self employed.
Zero Hours contracts are acceptable by exception subject to at least I year's track record and suitable evidence of earnings.
Working Tax Credits
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 100%. Top slicing not currently accepted where a FTB or self employed.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 100%. Top slicing not currently accepted where a FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently accepted where a FTB or self employed.
Can consider. Must send a minimum of 3 comparable properties that have been sold in the last 6 months.
Valuation / Survey Types Available
Valuation for mortgage purposes only. Fee free option available with Fee Saver products on properties valued at up to £500,000. Home Buyers Reports and Full Building Surveys are not available through Vida.
Valuation for mortgage purposes only. Fee free option available with Fee Saver products on properties valued at up to £500,000. Home Buyers Reports and Full Building Surveys are not available through Vida.
Utility Bills Missed/Late Payments/Arrears
Up to 3 unsecured missed payments are allowed in the last six months (for example on credit cards, catalogues and personal loans) up to a combined total of £500
Up to 3 unsecured missed payments in the last six months (for example on credit cards, catalogues and personal loans) up to a combined total of £250 accepted.
Yes, up to 3 missed unsecured payments in the last six months (for example on credit cards, catalogues and personal loans) up to a combined total of £500.
Universal Credit
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 50% subject to it not being the only form of income. Top slicing not currently accepted where a FTB or self employed.
Accepted at 50% but must not be main source of income but assessed on individual basis
Unit Trusts / Open Ended Investment Companies as an Interest Only Repayment Vehicle
Acceptable. Stocks, Shares, ISA or other liquid investment. Declaration Form will be required clearly setting out the repayment strategy and amount(s) to be used.
Acceptable. Treated as a Remortgage. Free legals would not be available
Underpinned Properties
Properties that have been underpinned in the last 10 years must have a 10 year guarantee warranting the works completed and must be placed with the title deeds. The Valuer must state no sign of new movement. The solicitors to confirm prior to completion that the Building's Insurer's are aware of the problem and willing to cover on normal terms.
Properties that have been underpinned in the last 10 years must have a 10 year guarantee warranting the works completed and must be placed with the title deeds. The Valuer must state no sign of new movement. The solicitors to confirm prior to completion that the Building's Insurer's are aware of the problem and willing to cover on normal terms.
All UK and EEA applicants must provide at least 2 years residential address history in UK. All applicants must provide 3 years address history. A customer with less than 2 years' UK residency is acceptable if applying jointly with another principal customer who is a UK or EEA national, satisfies the UK residency requirements and can afford mortgage based solely on their income.
All UK and EEA applicants must provide at least 2 years residential address history in UK. All applicants must provide 3 years address history. A customer with less than 2 years' UK residency is acceptable if applying jointly with another principal customer who: is a UK or EEA national; satisfies the UK residency requirements; and can afford mortgage based solely on their income.
Yes. The Helping Hand proposition will allow parents or step parents and their children to support each other in purchasing or remortgaging a property, being party to the mortgage and having their income taken into account as part of the affordability assessment without the need to go onto the title deeds. See website for full details
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, this will be included in the affordability assessment. Top slicing not currently available for FTB or self employed.
Third Party Income (Spouse, Partner, Parent etc.) not Named on Mortgage
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this can be considered but only if it is Court Ordered Maintenance. Top slicing not currently accepted where a FTB or self employed.
Third Party Income (Spouse, Partner, Parent etc.) not Named on Mortgage
Only as Court Ordered Maintenance.
Tenure
Freehold & Leasehold are both acceptable. For Capital & Interest loans minimum of 40 years lease remaining at the end of the term. For Interest Only, there must be 70 years remaining at the end of the term.
Freehold & Leasehold are both Acceptable For Capital & Interest loans minimum of 40 years lease remaining. Interest Only, 70 years remaining.
Tenancy / Letting to Government/ Housing Association / DSS
Corporate Lets are Acceptable. Require sight of all corporate letting agreements which are then referred to our solicitors for consideration. DSS tenants acceptable.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB/FTL but if either of these apply then permanent employed Teachers are treated as a standard employment. Can consider Supply Teachers with a long track record.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Acceptable. Minimum 6 months' contract or rolling 3 months' renewed at least once. Customer must have a 1 year track record of employment within the same line of work. For self-employed, weekly rate x46 weeks. Where paid via an umbrella company or where employer pays both tax and NI, income verified via last 3 months' payslips and most recent P60 if applicable. CIS contractors income verified using the average of 3 months' income from latest payslips.
Student lets: students can either be on individual AST's or jointly and severally liable for the rent. It is acceptable for a family member to be one of the occupants of a Student Let. Family members must not reside in the property, unless full time students occupying less than 40%. To be let out on AST only.
Stocks & Shares as an Interest Only Repayment Vehicle
Acceptable. Stocks, Shares, ISA or other liquid investment. Declaration Form will be required clearly setting out the repayment strategy and amount(s) to be used.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 100% subject to it not being the only form of income. Top slicing not currently accepted where a FTB or self employed.
SPVs / Business Classification SIC Codes Limited Company Lending
SPV's must have one of the following SIC Codes: 68100 Buying and selling of own real estate‚ 68209 Other letting and operating of own or leased real estate‚ 68320 Management of real estate on a free or contract basis‚ 68201 Renting and operating of Housing Association real estate
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently accepted where a FTB or self employed.
For purchase applications, the solicitor must be on our own panel. For remortgage applications, the customer must use our free legal service. (The customer cannot use their own solicitor for a remortgage.)
Sole Trader to a Limited Company - Change of Trading Status
Agreed subject to individual cases assessment. We will consider lending to Special Purpose Vehicles for the purpose of property investment – trading limited company lending is not permitted.
Shortfall in Rental Calculation / Top Slicing / Personal Income Affordability
Top slicing available from 115% for BRT and 120% for HRT. Not available for portfolios, expats, HMOs or MUBs. Not currently available for FTB or self employed
IIncome and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then the current contract must be for a period of at least 6 months, or a 3 month contract renewed at least once. If the contract has more than 6 months to run the customer must have been employed for a minimum of 12 months in the same line of work at the time of the application. If the contract has less than 6 months to run the applicant must have a 2-year track record of employment within the same line of work. Top slicing not currently available for FTB or self employed.
The current contract must be for a period of at least 6 months, or a 3 month contract renewed at least once. If the contract has more than 6 months to run the customer must have been employed for a minimum of 12 months in the same line of work at the time of the application. If the contract has less than 6 months to run the applicant must have a 2-year track record of employment within the same line of work.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, this will be included in the affordability assessment. Top slicing not currently available for FTB or self employed
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then Accounts must be no more than 12 months old before the date of application. Where proof of income is more than 12 months old we will also require an accountants certificate verifying that there are no material changes in revenue, expenditure, salary and dividends. Top slicing not currently available for FTB or self employed.
Accounts must be no more than 12 months old before the date of application. Where proof of income is more than 12 months old we will also require an accountants certificate verifying that there are no material changes in revenue, expenditure, salary and dividends. If Accountants certificate is not available, personal and business bank statements are required for review by underwriter
Income and self-employment details are not relevant for self-funding BTLs unless top slicing or a FTB. If one of these applies, it is acceptable for an applicant to be paid via an umbrella company, which pays tax and NI. Income verified via last 3 months payslips and most recent P60 if applicable or by way of contract x 46 weeks. Top slicing not currently accepted where a FTB or self employed.
Acceptable to be paid via an umbrella company, which pays tax and NI for the applicant. Income verified via last 3 months payslips and most recent P60 if applicable or by way of contract x 46 weeks
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, we require a minimum 12 months trading period with 1 year's accounts or SA302 & Tax Year Overview. If the Company has been trading for 3 or more years, we will need to see stable / improving profits. Top slicing not currently accepted where a FTB or self employed.
Minimum 12 months trading period with 1 year's accounts or SA302 and tax year overview. If the company has been trading for 3 or more years we will need to see a stable or improving trend of profits.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, Sole Traders require 12 months' trading with 1 year's accounts or SA302 and tax overview. Where trading for longer we will also request up to 3 years profit figures. Acceptable sole trader income is taken as the most recent net profit where stable or increasing. Income verified by one of : one years accounts (prepared by certified or qualified accountant); an accountants reference covering the last year; One years SA302 including tax year overview. Top slicing not currently accepted where a FTB or self employed.
Sole traders require 12 months trading with 1 year's accounts or SA302 and tax year overview. Where trading for longer we will also request up to 3 years profit figures. Acceptable sole trader income is taken as the most recent net profit where stable or increasing. Income verified by one of : one years accounts (prepared by certified or qualified accountant); an accountants reference covering the last year; One years SA302 including tax year overview.
Self Employed - Retained Profit in Company
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Retained profit will not be considered however, where 100% shareholders are on the mortgage we will consider net profit after tax from the latest approved and finalised accounts. The last 3 years accounts will need to show stable or improving business profits.
Self Employed - Partnerships
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Vida requires 12 months trading with 1 year's accounts or SA302 and tax year overview. Where trading for longer we will also request up to 3 years profit figures. Acceptable partnership income is taken as the most recent share of partnership profit where stable or increasing.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this can be considered subject to 12 months trading with 1 year's accounts or SA302 and tax year overview. Where trading for longer we will also request up to 3 years profit figures. Acceptable partnership income is taken as the most recent share of partnership profit where stable or increasing. Top slicing not currently accepted where FTB or self employed.
Treated as self employed when owning 25% or more of the shares. For joint applicants who are shareholders in the same company, the 25% relates to the combined shareholding. Affordability based upon dividends + remuneration, or net profit where applicants own 100% of the company
Self Employed - Declining Profits
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then where figures show a significant variance, Vida may request further information for prior years to enable a better view of the trend to be established prior to making a decision. Top slicing not currently available for FTB or self employed.
Where figures for the previous 2 years show a significant variance Vida may request information for prior years to enable a better view of the trend to be established. Net profit should be progressively rising or, at worst, level.
Self Employed - Assessment of Accounts for Affordability
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, income is verified using one of:- One year's accounts( 1 year's verified accounts or SA302), an accountant's reference covering at least a year or one year's HMRC self-assessment tax return. If the proof of income is more than 12 months old then in addition will require an accountants certificate verifying there are no material changes in revenue, expenditure, salary and dividends. Top slicing not currently available for FTB or self employed
Self Employed - Assessment of Accounts for Affordability
Where self employed, income is verified using one of:- One year's accounts( 1 year's verified accounts or SA302), an accountant's reference covering at least a year or one year's HMRC self-assessment tax return. If the proof of income is more than 12 months old then in addition will require an accountants certificate verifying there are no material changes in revenue, expenditure, salary and dividends.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, this can be considered. Top slicing not currently available for FTB or self employed.
Applications will be accepted as long as there is a minimum of one years verified accounts or SA302 covering one year. All self-employed income will be verified by accounts that must be certified by a qualified accountant or the SA302.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 100% providing a 12 month history can be demonstrated. Top slicing not currently accepted where a FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, this will be included in the affordability assessment. Top slicing not currently available for FTB or self employed.
Sale of UK Investment Property as an Interest Only Repayment Vehicle
Sale of another mortgaged property acceptable as repayment strategy. Declaration Form will be required clearly setting out the repayment strategy and amount(s) to be used.
Sale of Security Address as an Interest Only Repayment Vehicle
Sale of Security Address as an Interest Only Repayment Vehicle
Downsizing acceptable. Customers are expected to have a minimum amount of equity remaining in the property at the end of the mortgage term in order to repay the mortgage debt and also feasibly purchase another property. Min £200,000 equity required at the start of the mortgage for all securities located within London and the South East of England‚ £150,000 for securities located in the rest of the UK. Max LTV : 70%
Sale of Other Assets as an Interest Only Repayment Vehicle
Acceptable. Other repayment strategies, including sale of other assets and occasional payments from income will be considered. Interest only Repayment Strategy Declaration Form will be required clearly setting out the repayment strategy and amount(s) to be used.
Sale of Main Residence as an Interest Only Repayment Vehicle
Downsizing acceptable. Customers are expected to have a minimum amount of equity remaining in the property at the end of the mortgage term in order to repay the mortgage debt and also feasibly purchase another property. Min £200,000 equity required at the start of the mortgage for all securities located within London and the South East of England‚ £150,000 for securities located in the rest of the UK. Max LTV : 70%
Sale of Foreign Property/Assets as an Interest Only Repayment Vehicle
Partial retentions not acceptable. Assessed on current valuation. Full retentions are required where substantial work is necessary on the subject property
Partial retentions not acceptable. Assessed on current valuation. Full retentions are required where substantial work is necessary on the subject property
Not acceptable for security purposes but happy to consider lending on a new residential purchase with one in the background. The monthly payment on any mortgage would be taken as a commitment. Let to Buy acceptable.
All applicants must provide 3 years address history. UK and EEA applicants must provide at least 2 years residential address history in UK. Non EEA Nationals must be resident in the UK the for last 2 years and have a permanent right to reside in the UK. A customer with less than 2 years' UK residency is acceptable if applying jointly with another principal customer who: is a UK or EEA national; satisfies the UK residency requirements; and can afford mortgage based solely on their income.
3 years' address history required from all applicants. All UK and EEA applicants must provide at least 2 years' residential address history in UK. All Non EEA nationals must have been resident in the UK the for last 2 years and have permanent right to reside. A customer with less than 2 years' UK residency is acceptable if applying jointly with another principal customer who is a UK or EEA national‚ satisfies the UK residency requirements and can afford mortgage based solely on their income.
Requirement to be a Homeowner / Owner Occupier
Applicants who do not currently own any property are acceptable, but will be assessed for affordability on both a residential and BTL basis.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently available for FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB/FTL but if either of these apply, this could be considered. Top slicing is not allowed if the property is an HMO or MUB or if the Applicant is a Portfolio landlord or an Ex-Pat
Rental Calculation / Stress Test / Interest Cover Ratio (ICR)
Single unit: BRT and Ltd Cos 125%. Top slicing from 115% using surplus income subject to full affordability assessment and income verification. HRT 140% with top slicing from 120%. Ex Pats cannot top slice from surplus income. HMO/MUB: 130% for BRT, 140% for HRT. No top slicing. For 5 year fixed rate the cover is based on the initial product rate. When £ for £ remortgage, but not a 5 year fixed rate, use a notional rate of 5% unless the initial rate is higher. For 2 year fixed, the rental calculation is based on the higher of 5.5% or product rate + 2%. Rental Calculation must cover the Gross Loan i.e. including any fees that are being added.
Acceptable if over 6 months ago. If less than 6 months ago, we allow remortgaging from bridging finance provided by other lenders including the roll up of interest and lender fees only. Capital raising is not accepted in this time period. Repayment of a private bridge is not permitted.
Acceptable. We allow remortgaging from bridging finance provided by other lenders including the roll up of interest and lender fees. Capital raising is not accepted.
Remortgage Capital Raising Purposes
Remortgage allowed for any legal purpose. Capital Raising excludes speculative investments, gambling debts and purchase of time share.
Remortgage allowed for any legal purpose. Debt consolidation available up to 75% LTV. Capital Raising excludes business purposes, speculative investments, gambling debts and purchase of time share.
Remortgage Applications
Remortgage allowed for any legal purpose and up to scheme limits. Excludes business purposes, speculative investments, Gambling Debts and the purchase of time share
Remortgage allowed for any legal purpose and up to scheme limits. Excludes business purposes, speculative investments, Gambling Debts and the purchase of time share
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. If income is being used please refer for consideration. Top slicing not currently accepted where a FTB or self employed.
Areas up to three acres acceptable, more can be considered on a case by case basis. Must be wholly for residential use, private paddocks and stables acceptable but not farms and smallholdings. Agricultural or similar restrictions not acceptable.
Areas up to three acres acceptable, more can be considered on a case by case basis. Must be wholly for residential use, private paddocks and stables acceptable but not farms and smallholdings. Agricultural or similar restrictions not acceptable.
Areas up to three acres acceptable, more can be considered on a case by case basis. Must be wholly for residential use, private paddocks and stables acceptable but not farms and smallholdings. Agricultural or similar restrictions not acceptable.
Areas up to three acres acceptable, more can be considered on a case by case basis. Must be wholly for residential use, private paddocks and stables acceptable but not farms and smallholdings. Agricultural or similar restrictions not acceptable.
Property with an Annex / Outbuildings / Land / Acreage
Can consider. Subject to valuer's comments.
Property with an Annex
Properties with annexes are acceptable with shared services provided the annex is used for residential purposes. One Annex for family only. Where you are aware the occupation is by an extended family member, for example parent, please provide the details.
Properties with annexes are acceptable with or without shared services provided the annex is used for residential purposes. One annex only, which should be occupied as ancillary accommodation to the main property under the same AST i.e. no separate letting.
Accepted. Flats above commercial premises will be accepted with up to of 75% LTV. Where the commercial premises is a restaurant, takeaway or launderette the loan will be restricted to a maximum of 60% LTV
Accepted. Flats above commercial premises will be accepted with a maximum of 75%LTV. Where the commercial premises is a restaurant, takeaway or launderette the loan will be restricted to a maximum of 60% LTV
Electronic identification will be used to identify an applicant(s) against a variety of public databases. If the applicant(s) is not found or does not pass the electronic ID verification process, proof of identity & residency as appropriate will be required. EID used, but where required we may need the following: Utility bill dated within the last 3 months (internet statements will be considered), Bank/credit card statements showing full name and address (internet statements will be considered)‚ Latest Council Tax bill, HM Revenue & Customs correspondence - relating to current tax year‚ Latest Mortgage Statement (internet statements not acceptable)
Satisfactory proof of residency covering a minimum 2 year period is always required. Electronic Identification (EID) is used. However ,if the applicant is not found or does not pass the EID verification process, proof of identity and residency will be required as appropriate:- valid UK driving licence, utility bill dated within the last 3 months (internet statements considered)‚ bank / credit card statements showing full name and address (internet statements considered), latest council tax bill, HM Revenue & Customs correspondence - relating to current tax year, latest mortgage statement (internet statements not acceptable).
Proof of Personal / Photographic ID
Electronic identification (EID) will be used to identify applicants. If applicants is not found or does not pass the EID verification process, proof of identity: Valid UK Passport, Valid UK Driving Licence‚ Valid Non-UK Passport or National ID Card, HM Forces / Police Warrant Card, UK Firearms certificate or shotgun licence
Electronic identification (EID) will be used to identify applicants. If applicants is not found or does not pass the EID verification process, proof of identity: Valid UK Passport, Valid UK Driving Licence‚ Valid Non-UK Passport or National ID Card, HM Forces / Police Warrant Card, UK Firearms certificate or shotgun licence
Required in any purchase where the deposit is NOT being funded by use of equity release from the sale of the customer's current property
Professions / Professional Specialist Range / Criteria
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently accepted for FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. If either of these apply, each case will be considered on its individual merits. Top slicing not currently available for FTB or self employed.
Maximum 20 properties up to a maximum portfolio of £4,000,000 with Vida. No limit on total properties in overall portfolio. If landlord's whole portfolio is four or more properties (regardless of Lender), average maximum LTV is 80%
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB and would be subject to underwriters descretion. Top slicing not currently available for FTB or self employed.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 50%. Top slicing not currently accepted where a FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then this needs to be referred . It may be acceptable subject to a long track record. Top slicing not currently available for FTB or self employed.
England, Wales and the following postcodes in Scotland; AB (excluding 42-45, 56), DD, DG, EH (excluding 43-46) G, IV (excluding 4, 13, 19-63), FK, KA (excluding 6, 18, 19, 26-28), KY, ML, PA (excluding 20 - 80) and PH (excluding 20 - 42)
Postcode / Location Acceptable Areas for Lending
England, Wales and the following postcodes in Scotland; AB (excluding 42-45, 56), DD, DG, EH (excluding 43-46) G, IV (excluding 4, 13, 19-63), FK, KA (excluding 6, 18, 19, 26-28), KY, ML, PA (excluding 20 - 80) and PH (excluding 20 - 42)
Portfolio Landlords - Rental Assessment of Background Properties
Vida will only apply rental assessment to portfolio properties with Vida. This is at the same rate as for individual properties ie 125% at 5.5% or 5% for pound for pound remortgage. For the wider (non - Vida) portfolio we will simply assess rental income compared to the mortgage payment but will be looking to see how any properties with < 125% is mitigated through the Portfolio as a whole
Portfolio Landlords can remortgage for debt consolidation up to scheme limits. Maximum borrowing with Vida 20 properties and £4,000,000. Maximum 80% LTV across wider portfolio
Portfolio Landlords - Maximum Loan Amount / Lending / Borrowing
Vida will lend against a maximum of 20 properties and up to a maximum of £4m. No limit on total portfolio size and no restriction on the total amount being borrowed by the portfolio landlord
Vida will require an existing property portfolio spreadsheet and Business plan for each application. Both of these forms are downloadable from Vida website. Brokers can upload their existing portfolio spreadsheet providing it contains the relevant information. On rare occasions the underwriter might also request a cashflow forecast and/or an Asset and Liability statement
All Portfolio Landlords will need to complete a Business Plan and on occasion and at underwriter discretion, may be asked to provide a Cashflow Statement and an Asset and Liability Statement.
Someone who has 4 or more mortgaged BTL properties at application Up to 80% LTV average across portfolio. £4m max loans on up to 20 proerties with Vida. No limit on overall portfolio size
Up to 20 properties with a maximum portfolio of £4,000,000 with Vida. No limit on overall portfolio size. If landlord's whole portfolio is four or more properties (regardless of lender), average LTV must be no more than 80%.
If the only available overseas address is a PO Box number, this will be acceptable where supported by confirmation from their employer via proof of address template and last 3 months payslips showing the salary credit into the bank account
If the only available overseas address is a PO Box number, this will be acceptable where supported by confirmation from theiremployer via proof of address template and last 3 months payslips showing the salary credit into the bank account
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. If either of these do apply, this will need to be referred for consideration by exception subject to at least 1 year's track record and suitable evidence of earnings. Top slicing not currently available for FTB or self employed.
We will consider Piece Work in exceptional circumstances, subject to at least 1 year's track record and suitable evidence of earnings.
Personal Independence Payment / PIP
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 50%. Top slicing not currently accepted where a FTB or self employed.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply, this will be included in the affordability assessment. Top slicing not currently available for FTB or self employed.
Acceptable. Pension (Personal, Executive or Employed pension plan). Declaration Form will be required clearly setting out the repayment strategy and amount(s) to be used.
Payslips / Wageslips
Hand-written document and online payslips will be accepted with the corresponding bank statement to show the salary credit being made to the customer.
Applicants must have finished the payment holiday (for secured and unsecured loans), with evidence of at least one payment made via most recent mortgage/lender statement or alternatively most recent bank statement
Please see Vida’s COVID-19 Lending guide for further info
Applicants must have finished the payment holiday (for secured and unsecured loans), with evidence of at least one payment made via most recent mortgage/lender statement or alternatively most recent bank statement.
Please see Vida’s COVID-19 Lending guide for further info
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB, but if one of these applies, this can be considered subject to usual underwriting checks. Top slicing not currently accepted where a FTB or self employed.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 50%. Top slicing not currently accepted where a FTB or self employed.
Income and self-employment details are not relevant for self funding BTLs unless top slicing or a FTB. If one of these applies, this is acceptable at 50%. Top slicing not currently accepted where a FTB or self employed.
50% of guaranteed overtime is accepted - evidenced by last three months' payslips.
Overtime - Fluctuating
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. If either of these do apply, overtime can be considered at 50%. Top slicing not currently available for FTB or self employed.
Overpayments of up to 10% per annum of the outstanding loan are permitted without incurring an Early Repayment Charge during the initial fixed/variable term.
Overpayments of up to 10% per annum of the outstanding loan are permitted without incurring an Early Repayment Charge during the initial fixed/variable term.
Over-indebtedness / Debt to Income Ratio
Vida does not use Debt to income ratios. All applications must pass affordability
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB/FTL. If these apply, the following can be considered:- At 100%: Income from trust funds; Rental profit; Investment income supported by SA302; Occupational pension income (including war widows/disablement or widowers pensions); Second and other jobs providing 12 months record; Car allowance; Shift allowance; London/large town allowance; Housing allowance (provided by an employer); Mortgage subsidy; Payments from Armed Forces compensation scheme; Lodger income (for remortgages); Foster Care Income. The following are acceptable at 75%: Regular monthly, quarterly or annual bonuses supported by P60 and relevant payslips. The following are acceptable at 50%: Universal Credit (not as main income); Overtime or commission; non regular bonus or profit related pay; Disability/Carers Allowance; Incapacity Benefit.
The following are acceptable at 100%: Income from trust funds; rental profit; investment income supported by SA302; occupational pension income (including war widows/disablement or widowers pensions); second and other jobs providing 12 months' record; car allowance; shift allowance; London/large town allowance; housing allowance (provided by an employer); mortgage subsidy; payments from armed forces compensation scheme; lodger income (for remortgages); foster care income.
The following are acceptable at 75%: regular monthly, quarterly or annual bonuses supported by P60 and relevant payslips.
The following are acceptable at 50%: Universal Credit (not as main income); overtime or commission; non regular bonus or profit related pay; Disability/Carer's Allowance; Incapacity Benefit.
Properties in the course of construction or Off Plan will be considered on a 'finished basis' valuation with full retention of monies until the property is ready for completion
Properties in the course of construction or Off Plan will be considered on a 'finished basis' valuation with full retention of monies until the property is ready for completion
With the exception of our Helping Hand proposition, all applicants must reside in the security property. Helping Hand is our Joint Borrower Sole Proprietor purchase and remortgage offer (either FTB or home-mover, excludes RTB). Parents and children assisting each other to buy a home by joining the mortgage without going on the title deeds. All incomes considered in affordability subject to usual rules.
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then this is an acceptable form of income and will be considered at 100%. Top slicing not currently available for FTB or self employed.
High quality flats over 10 storeys (maximum 20) can be referred for underwriter consideration based on valuers comments on mortgageability & saleability. For Ex-Local Authority/Housing Association/Ministry of Defence, where the block is over 4 storeys in height (ground floor + 3 floors) or with more than 50 units in the block, can be considered on an individual basis. Balcony access can be accepted. High rise flats must have a lift if property is on or above 4th floor (ground floor + 3 floors)
High quality flats over 10 storeys (maximum 20) can be referred for underwriter consideration based on valuer's comments on mortgageability & saleability. For Ex-Local Authority/Housing Association/Ministry of Defence, where the block is over 4 storeys in height (ground floor + 3 floors) or with more than 50 units in the block, can be considered on an individual basis. Balcony access can be accepted. High rise flats must have a lift if property is on or above 4th floor (ground floor + 3 floors).
Non UK / EU / EEA Foreign Nationals - Time remaining on Visa
All non EEA Nationals must be resident in the UK for the last 2 years and have permanent right to reside in the UK. Exception is where non EEA national without permanent right to reside is party to a joint mortgage where affordability can be passed entirely on other applicant's income who is a UK / EEA National who satisfies the UK residency requirements. In addition if top-slicing is required, affordability will be based solely on the UK/EEA National.
Accepted. All Non EEA Nationals must be resident in the UK the for last 2 years and have a permanent right to reside in the UK. All applicants must provide 3 years address history.
Accepted. All Non EEA nationals must have been resident in the UK the for last 2 years and have permanent right to reside in the UK. We require 3 years' address history from each applicant.
NHS Fleet Solutions / Car Scheme / Salary Sacrifice
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB but if either of these apply then this will be considered in the affordability calculation. Top slicing not currently available for FTB or self employed.
Accepted providing incentive does not exceed 5% and confirmation is received from the vendor/builder, confirming monetary value. Maximum 5% of the total amount of the Incentives as declared on the UK Finance Disclosure Form. Can be split i.e. 2.5% Builder Gifted Deposit and 2.5% Cash or other incentives.
Accepted providing incentive does not exceed 5% and confirmation is received from the vendor/builder to confirm monetary value. Maximum 5% of the total amount of the Incentives as declared on the CML Form which can be split i.e. 2.5% Builder Gifted Deposit and 2.5% Cash or other incentives.
New Build Warranties / Warranty Providers
Must hold an acceptable warranty from one of the following (not exhaustive): Advantage/Advantage HCI‚ Aedis Warranties Limited‚ Ark Insurance Group Limited-Latent Defects Insurance‚ Build Assure‚ Build Life Plans‚ Build Zone, Castle 10 (Checkmate)‚ Global Home Warranties Limited‚ ICW, LABC‚ NHBC Certificates, Premier Guarantee‚ Protek‚ Q Assure Build Limited‚ Zurich Municipal Policy
Must hold an acceptable warranty from one of the following (not exhaustive): Advantage/Advantage HCI‚ Aedis Warranties Limited‚ Ark Insurance Group Limited-Latent Defects Insurance‚ Build Assure‚ Build Life Plans‚ Build Zone, Castle 10 (Checkmate), Global Home Warranties Limited‚ ICW, LABC‚ NHBC Certificates, Premier Guarantee‚ Protek‚ Q Assure Build Limited‚ Zurich Municipal Policy
New Build Houses
Accepted up to scheme limits. Vida Homeloans define a new build property as a property that has never been occupied and must have suitable NHBC Warranty.
New Build apartments and flats are accepted up to scheme limits. Vida Homeloans define a new build property as a property that has never been occupied and must have suitable NHBC Warranty. Valuation can be off plan. Initial offer is for 6 months and can be extended for a further 6 months on the same product subject to credit search, affordability and re-valuation (£120). High rise flats must have a lift if situated above 4th floor (ground floor + 3 floors). High quality flats over 10 storeys (maximum 20) can be referred for underwriter consideration based on valuer comments on mortgageability & saleability.
New Build apartments and flats are accepted up to scheme limits. New Build is defined as a property that has never been occupied and carries a suitable NHBC warranty. Valuation can be off plan. Initial offer is for 6 months and extendable for a further 6 months on the same product, subject to credit search, affordability and re-valuation (£120). High rise flats must have a lift if situated above 4th floor (ground floor + 3 floors). High quality flats over 10 storeys (maximum 20) can be referred for underwriter consideration based on valuer's comments on mortgageability & saleability.
MUBs accepted up to 5 units on a single freehold title. At least one applicant must have 1 year’s landlord experience. Min Valuation £175,000 for the freehold block in London and SE, £125,000 in all other regions. Rental assessment = 130% for basic rate tax payers or Limited Companies, 140% for higher rate taxpayers. Top slicing not available
Offers are valid for 4 months which can be extended for a further 4 months on the same product subject to a credit search, in date valuation and affordability assessment (if applicable). For New Build, offers are valid for 6 months, extendable for a further 6 subject to credit search, affordability and re-valuation (£120).
Offers are valid for 4 months which can be extended for a further 4 months on the same product subject to a credit search and affordability assessment. For New Build, offers are valid for 6 months, extendable for a further 6 subject to credit search, affordability and re-valuation (£120).
Mortgage Declarations / DDM's
Electronic. No paper or wet ink signatures required. DDM goes out with the Mortgage Offer.
Vida Homeloans will accept customers that have adverse credit, the requirements detailed below apply to the standard product range and are the maximum adverse credit per application. Max 3 unsecured missed payments in the last 6 months with a combined value up to £250
Yes, up to 3 missed unsecured payments in the last six months (for example on credit cards, catalogues and personal loans) up to a combined total of £500.
Mining / Contamination / Subsidence / Landfill
Will not lend where saleability may be adversely affected by local planning or by an unsatisfactory mining report
£50,000 up to 70% LTV. Over 70% LTV, minimum valuation of £70,000 applies. Ex Local authority flats/maisonettes minimum £80,000 outside London, minimum £200,000 in Greater London up to 80% LTV. £100,000 for HMOs, £125,000 for MUBs (£175,000 in London & South East)
Minimum Income - Capital and Interest Repayment Single Applicant
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB/FTL but if either of these apply, there is no minimum level of income
Minimum Income - Capital and Interest Repayment Joint Application
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB/FTL but if either of these apply, there is no minimum level of income
Income and employment details are not relevant for self funding BTLs unless top slicing or a FTB. Top slicing not currently accepted where a FTB or self employed.
Maximum 20 properties up to a maximum portfolio of £4,000,000 with Vida. No limit on total properties in overall portfolio. If landlord's whole portfolio is four or more properties (regardless of Lender), average maximum LTV is 80%
