First direct mortgage lending criteria (+ 3 tips)

In this brief blog post, we will cover the first direct mortgage lending criteria.

Here is what you need to know when considering if you may meet the first direct mortgage lending criteria.

To meet the first direct mortgage lending criteria you will need:

  • A good credit score
  • An employment history
  • A good mortgage deposit
  • And the proof of your income.

First direct mortgage lending criteria

The max loan to value on offer for first direct mortgage repayment mortgage products are 90%

The maximum loan to value for an offset mortgage offered via first direct is 75%.

When considering if you can afford a mortgage the income multiples on offer with first direct mortgages are flexible and based around your mortgage affordability. This means the underwriting process will look to establish if you can afford the monthly mortgage repayments.

As per the first direct mortgage lending criteria, there isn’t a maximum amount for a mortgage which you can get with first direct.

First direct has a maximum mortgage term of 40 years for its repayment mortgages and 25 years for its offset mortgages.

The minimum term for a first direct repayment mortgage is 2 years and the minimum term for an offset mortgage is 2 years.

First direct does not have any specific mortgages for first-time buyers.

If you are buying a leasehold property then the minimum lease term first direct will lend on is 30 years at the end of the mortgage term.

First direct offers offset mortgages.

First direct will offer up to a 90% LTV remortgage.

First direct offers tied insurance mortgages.

First direct does not offer buy to let mortgages.

To apply for a first direct mortgage you must be a UK resident and be able to evidence your income.

The minimum mortgage first direct will give is £10,000 on a repayment mortgage but £30,000 on an offset mortgage.

There is no minimum income requirement for a repayment mortgage but for an offset mortgage with first direct the requirements are as follows:

“ Sole applicants must have a minimum salary of £50,000, joint applicants must have a combined salary of £75,000 or one party with a minimum salary of £50,000.“

First direct property mortgage lending criteria

First direct mortgages will not lend on non-standard construction properties (with a working kitchen and bathroom), buy to let properties, properties bought through the right to buy scheme or the shared ownership scheme

The property being bought must be used as a main residence and not for business purposes.

First direct mortgages are happy to lend on new build properties.

First direct mortgages will not provide you with a remortgage if your property is currently for sale.

First direct flat mortgage lending criteria

First direct has strict requirements on if they can provide you with a mortgage offer for a flat.

First direct will not offer a mortgage if the flat is in the same building as a commercial property.

“if the building containing the flat has more than five floors, it must have a lift

if the block is an ex-local authority then first direct will require confirmation that at least 75% of the flats are now privately owned”

First direct mortgages will not offer a mortgage on flats which are freehold flats except they are taking a freehold of the whole building.

There are some types of property located in Tyneside which first direct will provide a mortgage offer on if the flat is a freehold flat.

First direct land mortgage lending criteria

If the land you want to buy is more than 15 acres then first direct has the below mortgage lending criteria:

“ A building survey must be conducted before any mortgage or loan funds can be released

There must be no agricultural restriction attached to the land and this must be confirmed.The land can only be used for personal use.

The maximum loan to value first direct will offer on their land mortgages is 75%. This can be either on the land price or value, whichever is lower.

Disclaimer: Up to date information may be found on the first direct website.

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.