Ulster University Quarterly House Price Index Q3 2017

1. What is the maximum LTV for a Northern Ireland Co-Ownership Housing Association (NICOHA) mortgage?

For NICOHA cases the Society’s maximum advance is 90% of the equity.

2. What is the maximum LTV for guarantor cases?

The maximum LTV the Society will consider in guarantor cases is 80%.

For more information please refer to our Lending Criteria

3. What is the maximum LTV for a buy-to-let mortgage?

The Society does not currently offer buy-to-let mortgages.

4. What is the maximum LTV for a self build mortgage?

The maximum LTV for self build mortgages is 75%.

5. How much will Progressive lend my client?

The amount Progressive Building Society will lend to a customer is dependent on an assessment of their affordability based on acceptable income and expenditure.

The Society uses income multiples to give an indication of how much we may lend. More details can be found in our Lending Criteria.

You can perform a quick calculation using our How much can my client(s) borrow? online tool. This will provide a high-level guide to the amount we are likely to lend based on your client’s income.

For a more detailed assessment, our online Affordability Calculator can be used before submitting any application to provide you with an illustrative borrowing figure based on your client’s personal .

You can also generate a Mortgage Illustration or request a Decision in Principle for your client within our secure online intermediary portal.

Income multiples and our calculator tools are for indicative purposes only and an application will still be subject to a satisfactory Affordability Assessment, Credit Search, Verification Check and Valuation.

6. How can I print my client’s affordability calculator results?

Once you have filled in your client’s details on the Affordability Calculator and the results have been generated, you can click the ‘print’ button at the bottom of the page to print their results.

7. How can I save my client’s affordability calculator results?

To save your client’s results, follow the steps below:

1. Fill in the calculator as normal.
2. On the results page press ‘Print’.
3. You should then see a Print Options screen that asks you to ‘select printer’. Scroll until you find any of the following options:
   • Adobe PDF
   • Microsoft XPS Document Writer
   • PDF Creator (you can download a free version of PDF Creator).
4. Select one of the options above, then press ‘print’.
5. After a few moments, a window should pop up asking you to ‘Save File As’. Choose your destination folder as normal and press ‘save’. Your client’s results should now be saved on your computer.

8. How is an applicant’s credit history likely to affect a mortgage application?

The Society will not normally consider lending to an applicant(s) who has ever:

• owned a property which has been subject to a shortfall sale or taken into possession by a lender, either as a result of a voluntary arrangement or by court action;
• failed to keep up payments under a mortgage or any other loan;
• had a county court judgement registered against them;
• been declared bankrupt or made arrangements with their creditors;
• defaulted on any credit accounts.

Please contact your BDM should you wish to discuss a case with them.

9. Does Progressive consider rental income when assessing affordability?

The Society will consider 60% of rental income in the Affordability Assessment. The Society will require proof of rental income by means of a copy tenancy agreement and/or proof of rental payments being received into a bank account.

10. Does Progressive consider unearned income when assessing affordability?

The Society will take some forms of unearned income into account when assessing affordability. We will not progress an application where state benefits make up the majority of the income (excluding pension income). The Society’s lending criteria can be viewed here.

11. How do you treat additional properties owned by the applicant?

If your client will own more than one property on completion of a new loan, the maximum LTV on their application will be 90%. When considering affordability, we’ll take into account the outstanding balance of any mortgages that are continuing, unless they are let and satisfy our additional properties criteria.

The Society will not accept an application from an applicant(s) where they hold more than 3 mortgaged buy to let properties.

12. How do you define a First Time Buyer?

First Time Buyers are applicants who have never held a mortgage (this includes UK and Non UK mortgages).

13. Do you support first type buyers with a Help to Buy: ISA?

We are pleased to support the government Help to Buy ISA scheme in Northern Ireland and offer a range of mortgages suitable for First Time Buyers. Please refer to our Product Search to identify mortgage products suitable for your client.

If you have any queries please contact your local branch who will be happy to assist you.

14. What is your new build policy?

We define new build as a property where construction is completed and/or the property is first occupied, in the last 12 calendar months.

• Maximum LTV on new build houses is 95% for residential property
• Maximum LTV on new build flats is 70% for residential property
• Requirement for the acting solicitor to confirm the property has been satisfactorily completed and that a New Build Warranty acceptable to Progressive Building Society is in place

The Society will issue an Offer for a validity period of 6 months in the case of purchases for properties being constructed in new build developments.

The Society may require up to date payslips, bank statements or an updated credit search where we are asked to consider re-issuing an out of date Offer of Advance.

15. What additional documentation is required to support a self build application?

For all applications to finance a self build project the Society will require the following additional documentation:

• Copy of site map;
• Copy of Planning Permission/Building Control documentation*;
• Final drawings/plans (to be provided to the Society’s local branch office for review by the valuer);
• Details of building warranty provider (e.g. professional consultant inspecting the new build property).

*There should be at least 1 year remaining on the Planning Permission.

16. How do staged payments work for self build projects?

Advances may be released in stage payments as agreed with the local branch.  The first stage payment may only be released when the stage of construction has at least reached the stage where the foundations have been laid.

The Society will require a copy of the valuer’s stage inspection report prior to release of any agreed stage payment.  Prior to release of the final stage payment we will also require a copy of the Professional Consultant’s final certificate, in our required wording.

17. What is the earliest stage at which the Society will lend for a self build project?

The earliest point the Society will consider lending for a self build is where the foundations have been laid and have been inspected by Building Control.

We will not consider it acceptable to lend on a site purchase only.

18. Can I submit a self build application for my client via the online intermediary portal?

We are not currently accepting self build applications through our online intermediary portal, however this is a future planned development coming soon.

If you would like to submit a self build application to us, please contact your local branch and we would be happy to assist you.

19. Do you accept interest only mortgage applications?

The Society’s maximum LTV for an interest only (or part interest only) loan is 75%.  The Society will only consider interest only (or part interest only) loans which have a credible repayment strategy in place.

20. What is your policy regarding Interest Only repayment strategies on residential applications?

The customer must have a credible repayment strategy in place to cover the balance of the loan at the end of the mortgage term. The repayment strategy must be in the name of the customer(s) and be from one of the following:

• Endowment Plan
• Stocks & Shares ISA Mortgage
• Personal Pension Plan
• Sale of second home (for loans less than 10 years equity at inception should be 100%. For loans greater than 10 years equity at inception should be 75%.)
• Self build Application – sale of existing property and conversion to repayment

For further information please refer to our Lending Criteria.

You will need to provide us with documented evidence of the repayment strategies. Periodically, we will ask your client to provide us with information on the performance of the repayment plan.

The Society is unable to offer any advice on the suitability of any protection or investment products.

21. Lending in and Lending into Retirement

Lending in retirement

 ‘Lending in retirement’ occurs when the applicant(s) / borrower(s) are retired at the inception of the mortgage contract.

Retirement is not linked to age but is linked to income.  If the majority of an applicant(s) / borrower(s) income is from pension income at the inception of the mortgage, then they are considered to be retired.

The maximum age for applicant(s) at the end of the mortgage term is 75 years.

The maximum LTV for ‘lending in retirement’ is 70%.

Where there are multiple parties to a mortgage with a mix of incomes it is important for the Society to understand and assess the source of income. Where the majority of income is derived from one party or parties ‘in retirement’ then the entire mortgage will be categorised as ‘in retirement’.

Loans to applicant(s) / borrower(s) ‘in retirement’, which is either on a variable rate or short-term fixed rate increases the possibility that the borrower(s) may be unable to afford higher monthly payments should rates rise significantly. Consequently, the Society will carefully consider the level of retirement earnings and we will seek appropriate information and assurances about the level of retirement income that will be available to meet continuing mortgage payments.

Lending into retirement

‘Lending into retirement’ i.e. to applicant(s) / borrower(s) who are currently in employment, but may have or will have retired before the term is scheduled to end.

Retirement is linked to age.  At the point of inception of the loan the age of the applicant(s) / borrower(s) at the end of the scheduled loan term will be noted.  If the term takes the applicant(s) / borrower(s) past the age of retirement i.e. the age the applicant(s) / borrower(s) have told the Society they plan to retire or age 70, the loan is considered to be ‘into retirement’.  Even if the applicant(s) / borrower(s) have stated they intend to work past the age of 70, once they have passed their anticipated retirement age or age 70 the loan is considered ‘into retirement’.

The maximum age for applicant(s) at the end of the mortgage term is 75 years.

The maximum LTV for ‘lending into retirement’ is 75%.

Where there are multiple parties to a mortgage with a mix of incomes it is important for the Society to understand and assess the source of income. Where the majority of income is derived from one party or parties falling into the definition of ‘into retirement’ then the entire mortgage will be categorised as ‘into retirement’.

Where a loan is defined as ‘into retirement’ then an assessment of affordability following retirement should also be made referencing income after the applicant(s) / borrower(s) are past their ‘into retirement’ age limit.  Both affordability assessments should reflect the full amount of the loan, since the mortgage payment should remain the same.

Loans to applicant(s) / borrower(s) who will be retired before the end of the mortgage term that are on either a variable rate or short-term fixed rate increases the possibility that the borrower may be unable to afford higher monthly payments when they retire should rates rise significantly. Consequently, the Society will carefully consider retirement earnings prospects and we will seek appropriate information and assurances about the level of retirement income that will be available to meet continuing mortgage payments.

This type of Mortgage Application should be submitted to your local Progressive branch using a paper application and not online.

22. What’s the difference between lending in retirement and lending into retirement?

‘Lending in retirement’ occurs when the applicant(s) / borrower(s) are retired at inception of the mortgage contract and ‘Lending into retirement’ is when the term of the mortgage extends beyond the applicant(s) / borrower(s) anticipated retirement age (up to a maximum age of 70).

• The maximum age at the end of the term is 75 years.
• The maximum LTV for ‘Lending in retirement’ is 70%.
• The maximum LTV for ‘Lending into retirement’ is 75%.

Confirmation of pension income will be required for both categories of lending.

23. How do I register to place business with Progressive Building Society?

If you are not already registered with us, you will need to complete a registration form to join our panel before you can place any business.  You can complete and submit a registration form here.

We aim to process your registration within 3 working days of receiving your completed registration form. Once your registration is processed and you have been added to our panel, you will be sent a link and instructions on how to register for our online portal. This email link will be valid for 7 days.

24. How do I register to use Progressive Online if I am already on the Society’s panel?

If you are on our panel but have not yet registered for our online portal, please contact our Support Team on 0800 0294 997 who will arrange for an email to be sent to you with a link to allow you to register.  This email link will be valid for 7 days.  See also ‘Logging in for the first time’ below.

25. Who do I contact if I am having problems registering to place new business with the Society?

If you experience any problems registering to do business for the first time, amending your current registration, or any technical issues with Progressive Online, please contact our Support Team on 0800 0294 997 who will be happy to assist.

For questions regarding our lending criteria or to discuss a new business case, please contact your BDM.

26. What will my procuration fee be?

If you have any queries regarding your procuration fee, please contact your BDM who will be happy to assist.

27. What type of business can I submit online with Progressive?

If you are registered for Progressive Online, you can submit applications for house purchases, product switch, self-build, new build and remortgage cases through this service.

The Society cannot presently accept online applications for the following:

• Foreign Currency Loans
• Guarantor applications,
• Holiday Homes
• Applications for more than 2 applicants
• Additional Borrowing
• Transfer of Equity

If you wish to submit an application for any of these application types, you should forward a completed paper mortgage application form to your local branch who will be happy to assist you. A mortgage application form can be downloaded here.

28. I am having technical difficulties using the online intermediary portal. Where can I find help?

For technical help using Progressive Online please refer to our technical guides or contact our Support Team on 0800 0294 997.

For questions regarding our lending criteria or to discuss a new business case, please contact your BDM.

29. What is the maximum LTV for an additional borrowing application?

• For capital raising purposes: 70%
• For debt consolidation purposes: 75%
• For home improvement purposes: 85%

30. How do I log in to the online portal?

To login to our online portal, please visit https://service.theprogressive.com/ and enter your username and password. You’ll also need to use the two-factor authentication method that you set up during registration.

If you are logging in for the first time:

If you haven’t yet received an email with a link to allow you to register, please contact our Support Team on 0800 0294 997 who will arrange to send an email to you to allow you to register. This registration email expires after 7 days.

During registration will be asked to provide us with your email address and mobile number.  We will then send you two unique 6-digit codes for you to use.  You will then be asked to create a password.

Please note that depending on your email settings any emails may be directed to your spam folder.

Once you are successfully registered you will be able to login using the password you created and you will be able to submit new business and eligible product switch cases through Progressive Online.

If you have never placed business with Progressive before, you will need to complete a registration form to join our panel before you can place any business online.  You can complete and submit a registration form here.

We aim to process your registration within 3 working days of receiving your completed registration form.