In this brief blog, we are going to discuss the Barclays lending criteria for residential mortgages.
Barclays lending criteria
The Barclays lending criteria covers both residential and buy to let mortgages. We are only going to cover the residential mortgages here. You can find more information about the Barclays lending criteria on their website.
The Barclays Lending criteria for Residential mortgages
|Loan term||The minimum loan term Barclays will accept on its residential mortgages is 5 years and the maximum term is 40 years.|
This changes for ints interest-only mortgages where the maximum is 25 years and for its family springboard mortgage where its maximum is 35 years.
|Maximum loan to value||If you are simply making a Purchase application-95% LTV|
If you want an Interest Only, maximum-75% LTV
If you are doing a Like for Like remortgage-90% LTV
If you are after a Remortgage with capital raising-85% LTV
If you are after a Remortgage with debt consolidation-80% LTV
If you are buying a New Build house-90% LTV
If you are buying a New Build flats-85% LTV
*Specific limits apply for Special Schemes.
|Loan size||The smallest Loan Barclays could offer is: £5,000(£200,000 Interest Only applications)Maximum Loan: Barclays will offer a bespoke product pricing above £5 million.Houses with an 85% LTV or greater will have a maximum loan of £375,000Flats with an 85% LTV or greater will have maximum loan of £220,000.|
|Barclays lending criteria for interest only mortgage||Barclays will offer a maximum 75% LTV onits interest-only mortgages|
You will need to have a minimum income of £75,000 as your gross annual income (single applicant)
or £100,000 for a joint application where no individual earns in excessof £75,000
The repayment vehicles you can use for your Barclays interest-only mortgage include:
Endowment policy, Existing Stocks and Shares ISASale of Property (up to 75% LTV with a maximum of 50% LTV on an Interest Only basis.
After the Interest Only element of the lending,clients are required to have £300K of equity in the property).
|Mortgage affordability: These are the factors Barclays will consider as part of its lending criteria when looking at whether you can afford the mortgage.||Your affordability is based on your incomeand commitments and stressed at an affordability rate of 7.24% on standard applications.|
The Family Springboard mortgage is stressed at an affordability rate of 7.24%.
For any repayment mortgage term greater than 35 years and up to 40 years, a maximum term of 35 years would be applied for measuring the mortgage affordability.
|Offer validity||Your Barclays mortgage offer will be valid for 6 months|
|Mortgage porting||Barclays says your mortgage rate and loan are fully portable subject to the current criteria at the time of your mortgage porting application.|
|Minimum age||You will need to be at least 18 years old to make a Barclays mortgage application|
|Maximum age||You will need to be no more than 70 years of age or the retirement age when your mortgage term ends.|
|Maximum applicants||There can only be a maximum of 4 applicants on a Barclays residential mortgage.|
|Lending into retirement||Barclays says it will consider applicants who want to borrow into their retirement on a case by case basis and may approve them based on their mortgage affordability.|
|Location||Barclays will only lend in England, Scotland, Wales and Northern Ireland.|
How to apply for a Barclays mortgage?
To apply for a Barclays mortgage you may want to first contact a mortgage broker.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases and may know more about the Barclays lending criteria. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which Barclays mortgage products may be suitable for you.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. This will allow you to shop for your home easier as more estate agents and sellers may take you seriously. Once you have found a home you want to buy the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your Barclays mortgage with the help of a conveyancer.
In this brief guide we covered the Barclays lending criteria, If you have any further questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.