Enumeration | Definition |
---|---|
Bridging loan | All short-term loans to bridge the period between a borrower buying a property and selling their previous residential property. |
Fast track buy to let | Including let to buy. Income and/or rental not actually verified, but not sold as self-certified. Limited previous arrears or CCJs, residential let property. |
Lifetime mortgage | A mortgage - typically made to older borrowers - designed to release equity from the home. Repayment of the capital (and usually the interest) only happens when the property is sold, usually when the borrower dies. |
Other mortgages | Refers to exposures to other mortgages not included within mainstream, self certified, sub prime and buy to let. |
Prime buy to let | Where the borrower intends to purchase the property for the purpose of letting. When reporting numbers, include any let-to-buy mortgages in this category. |
Prime fast track | Not sold as "self certified" but income not actually verified. Limited previous arrears or CCJs, owner occupied. |
Prime income verified | Income fully verified, no previous arrears or CCJs, owner occupied. |
Prime self cert | Sold as 'self certified', limited previous arrears or CCJs, owner occupied. |
Residential investment | Loans to commercial borrowers - except has - secured on residential property held for investment purposes. Loans should be classified according to the majority or main use; 'residential' excludes all loans to housing associations, and means where the property is, or will be used for, wholly or mainly residential purposes and includes houses, flats and sheltered accommodation, 'investment' means the loan is on property which is to be let. |
Second charge loan | All loans fully or partially secured by 2nd or lower charges on residential property. This means: a. the Indexed LTV to be on the total exposure, e.g. if the lender has a 2nd of 10k but the first is 80k on a property of 100k, we want a 90% ILTV. b. the exposure, arrears balance, provision, etc. needs to be only that associated with the firm, i.e. drawn balance = 10k, etc. c. for exposure, use the 'Total Facility' or 'Limit') to capture the total exposure of all loan with a charge on the property, e.g. limit = 90k. |
Self cert buy to let | Including let to buy. Sold as income and/or rental not verified. Limited previous arrears or CCJs, residential let property. |
Sub prime buy to let | Including let to buy. Income and/or rental may be verified or not. Poor credit score, previous arrears or CCJs - see MLAR definition of "impaired credit history". Residential let property. |
Sub prime income verified | Income fully verified, but previous arrears or CCJs - see MLAR definition of "impaired credit history", owner occupied, if at the time the loan was agreed the borrower either a) had been in arrears of 3 or more months on other loans within the previous 2 years, or b) had CCJs of more than £500 or been subject to IVA/bankruptcy in the previous 3 years, then the loan should be treated as sub-prime. |
Sub prime self cert | A borrower with an 'impaired credit history' who certifies their own income and no independent verification is sought. |