FIRST ACTIVE ANDULSTER BANK ** POLICY & PACKAGING REQUIREMENTS
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FIRST ACTIVE ANDULSTER BANK
** POLICY & PACKAGING REQUIREMENTS **
LOAN TO VALUES (LTV’s)
92% on PDH
92 – 100% First Time Buyers Package (minimum 2 bed roomed Property and three years
employment history)
100% Professional Package (details below)
85% RIPS
80% equity release on existing property to assist with RIP purchase outside Ireland
LOAN AMOUNTS
Minimum Mortgage of 50K
Minimum Top up – 20K – full documentation required again.
Minimum Switcher – 75K
Maximum LOAN EXAMPLE
Income – 32000 plus 3000 Bonus (50%) = 35,000
Net monthly – 35000 X 82% DIVIDE = 2391
Plus room rental 400 net
Total 2791 @45% = 1256 divide 5.85 (stress at 40) = 214,000 Maximum loan
I.e. net salary times DSR relevant to salary divide stress rate equals maximum loan
amount
DSR EXAMPLE
Loan amount – 380,000
Joint Income – 60K plus 40K
Net monthly – 60,000 x70% divide 12 = 3500
40,000 x 78% divide 12 = 2600
Total Net Monthly Income =6100
Monthly commitments –
Proposed Mortgage Stressed =2105
Car loan = 320
Total Commitments = 2425
Divide Total Income 6100
DSR 40%FIRST ACTIVE ANDULSTER BANK
** POLICY & PACKAGING REQUIREMENTS **
DEBT SERVICE RATIO QUICK REFERENCE GUIDE
Total financial commitments not exceeding stated DSR % of net monthly income subject
to mortgage repayments being stress tested at an assumed rate of 2% above the normal
variable rate
All Mortgages FTBs FTB PROFESSIONALS
Allowable Income up to 92% LTV >92%100% up to 100%LTV
0 – 49,999 45% 40% 50%
50k74,999 45% 45% 50%
75K – 124,999 50% 50% 55%
125K–199,999 55% 55% 60%
200K 60% 60% 65%
Room rental will be factored in for single applicants on the basis of a maximum of 400
Euro per month regardless of the number of rooms being let and provided the property is
more than a 1 bed.
GENERAL CRITERIA
Minimum Age 18
Max Age – 70 (subject to serviceability after age 65)
Minimum Income 20k
LTV
Up to 85% LTV – No Maximum LTV
85% to 92% Maximum LTV 900,000 (discretionary)
Repayment Terms –
Minimum Term 5 years
Maximum Term 40 years
TERM
Up to 40 years (up to 92% finance and 100% Professional Package)
Up to 30 years (100% Finance for FTB earning under Eur40K basic for single
applicants/50K for joint applicants)
Up to 40 years ( 100% Finance for FTB earning above 40K for single applicants/50K
joint applicants – note application will be assessed over 35 years if they can avail of this
term)
Up to 25 Years on RIPS
Maximum age on completion of mortgage is 70.FIRST ACTIVE ANDULSTER BANK ** POLICY & PACKAGING REQUIREMENTS ** INTEREST ONLY AVAILABLE ON PDH AND RIP PDH – LTV up to 80% 5 years interest only PDH – LTV from 80% 92% 2 years interest only RIP – 5 years interest only Level term cover required for interest only on PDH Minimum Mortgage Amount 200k REMORTGAGE AND DEBT CONSOLIDATION Eur65K short term debt – max LTV 80% Eur40K short term debt – max LTV 85% Eur40K short term debt – max LTV 92% for existing Ulster Bank/First Active Customers (must be a mortgage customer of minimum of 2 years, short term loans must be held a minimum of 12 months, good repayment history) PROFESSIONAL FTB PACKAGE List of Professionals – Accountant, Actuary, Dentists, doctors, lawyers, opticians. Pharmacists, physiotherapists, Vets, Barristers, Chartered Surveyors, Pilots, psychologists, Architects, University Lecturers, Engineers STIPULATIONS Minimum Age – 23 Minimum Income – 32,000 Joint applicants eligible (if one is a professional) Applicant must be fully qualified 6 months bank statements required Professional Package allowed a guarantor The professional Investor scheme is available only to fully qualified graduates in each of the above professions when purchasing their first property. Minimum salary requirements is 32K. Subsequent or additional properties will not be able to avail of 100% however DSR bands as per table apply. RESIDENTIAL 100% Mortgage – FTB 92 – 100% Mortgage e.g. 94% Maximum Term – 40 years AFFORDABILITY CALCULATED OVER 30 or 35 years depending on income levels – Single income > 40K 35Years Joint Income >50K 35years 6 months bank statements (no internets) 3 years continuous employment history Some exceptions e.g. graduates. Room Rental can be included
FIRST ACTIVE ANDULSTER BANK ** POLICY & PACKAGING REQUIREMENTS ** STAGE PAYMENTS 80% of lower of site purchase or site value 100% build – survey to confirm LTV does not exceed 92% Building to commence 6 months after drawdown if site is gifted. INCOME 50% Overtime – average over the last 2 years 50% bonus – average over the last 2 years 50% Commission – as above 70% Rental Income – (bank statements) Room Rental – 400 per month max Maintenance payments – formal separation and 6 months proof via bank statements State pensions and disability income allowed. STRESS TEST 2 % ABOVE SVR STRESS TEST OVER 40 YEARS IF ELIGIBLE SELF EMPLOYED 2 years self employed Last 2 years average net profit 2 years trading accounts completed by an accountant 2 years audited accounts – limited company RESIDENTIAL INVESTMENT LOANS Maximum Term – 25years Minimum Term – 5 years 5 years interest only if required Maximum LTV – 85% Maximum 5 Ulster Bank RIPS with Portfolio of 1 million borrowings (excluding PDH) 100% renovation costs subject to max LTV of 85% Similar DSR and NDI criteria PROFESSIONAL IINVESTORS Applicant must hold 3 RIPS for a minimum of 12 months to be assessed. Assess RIP Proposal based on rental income covering the interest only mortgage payment by 1.4 times No stress test No discount of rental income Full assessment of DSR, confirmation of income and normal proofs Maximum LTV – 75% Maximum of 5 properties Minimum income 75K independent of rental income Confirmation of income and standard documentation apply
FIRST ACTIVE ANDULSTER BANK ** POLICY & PACKAGING REQUIREMENTS ** TENANT PURCHASE AND DISCOUNTED PROPERTIES 100% of contract price subject to LTV not exceeding 80% of Open Market Value Proof of Deposit Balance of funds including stamp duty and expenses to be evidences and confirmed as not being from a borrowed source Gifts Legal waiver to be completed by person gifting the funds GUARANTORS Minimum basic Income – 44,000 Max – 20% of guarantor’s net monthly income can be used. Amount of Guarantee will be the difference between solo entitlement and actual amount required. No guarantors on 100% apart from professional package Ulster Bank do not allow joint mortgage and sole deeds e.g. in guarantor cases – father/daughter etc DOCUMENTS FOR ASSESSMENT ►Salary Certificate/p60, 2 recent payslips, (one for Ulster Bank) 3 months consecutive bank statements in original format (i.e. with the name and the account number evident (UB/FA declaration signed to enable an ICB to be carried out ►If Self Employed, 2 years certified accounts/accountants report and confirmation that tax affairs are up to date, 3 months bank statements for both business and personal, UB/FA Declaration to enable an ICB to be carried out ►Bank statements to be no more than six weeks old from date of AIP ►Mortgage statements and Loan Statements if applicable ►Borrowers Equity Input, need to see evidence of this from non borrowed source unless funds from sale of existing property/family gift. This does not have to include Stamp Duty ►Proof of ID and Proof of residency
FIRST ACTIVE ANDULSTER BANK ** POLICY & PACKAGING REQUIREMENTS ** BANK REQUIREMENTS Valuation Report – appointed from the banks panel/valuer holding Professional Indemnity Insurance Mortgage Protection Policy – Copy of Life Policy is sufficient House Insurance Policy – A copy of the buildings Schedule or Letter of Indemnity from Insurance Company is acceptable along with customers signed Notice of Interest forms Direct Debit Mandate – Current account details for mortgage repayment on 1st monthly Solicitors documentation required for cheque Issue – completed undertaking, Family Home Declaration, compliance with special conditions of Offer e.g. Letter of Guarantee/Waiver, Homebond Certificate etc
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