Lending Criteria – SME Secured Business Loan

BlueZest Lending Criteria – for Intermediaries

To be simple and clear, please find below a guideline of our lending criteria. This allows you to see the requirements for the products we have on offer and any particular specifics you may wish to know. Please note; this is not our full mortgage lending policy.

Company
  • Credit history

    Good credit history evidenced at credit bureau

  • Profitability

    Stable increasing profitability of company to be evidenced

Affordability
  • Affordability

    Affordability by Company at realistic stressed rate must be evident, in that pre-tax profit is sufficient to service loan

    Supporting documentation required:

    • Last 3 months’ Company bank statements
    • Last 2 years’ (3 if available) Company accounts (as prepared by a suitably qualified accountant)
Applicants
  • Number of applicants

    Maximum 4 applicants – all registered owners of the security property must be party to the mortgage

  • Applicant residency

    All registered owners of the secured property must be party to the mortgage

  • Convictions

    Applicants must not have any unspent convictions for offences, other than minor traffic offences

Credit History
  • Must have
    • Applicants must be creditworthy and have a good track of servicing loans/credit agreements as evidenced at a Credit Reference Agency
    • Additionally, applicants must not be overcommitted on other secured and unsecured borrowings
  • Declined if

    Mortgage applications will be declined if any applicant has had:

    • Any previous property repossessed
    • A County Court Judgment (CCJ), satisfied or unsatisfied
    • An insolvency (including those pending)
    • Any Debt Management Plan in place
    • Any loan defaults >£50 in the last 36 months
    • Any mortgage arrears in the last 12 months
    • Any “pay day” or “doorstep” loans in the last 36 months
Employment
  • Employment

    The Director whose property is being mortgaged must have been a director of the business for at least 2 years

Loan Purpose
  • Capital raising

    Capital raising for business purposes

  • Further advances

    Further advances are permitted once twelve consecutive full monthly payments have been made and if LTV =< 75%

  • Personal debt

    No personal debt can be consolidated as part of the mortgage

Residency
Acceptable Properties
  • Acceptable Properties
    • Properties must be located in England or Wales
    • The property should have a minimum value of £100,000
    • New build properties are acceptable
    • Freehold flats are not acceptable
    • Common-hold properties are not acceptable
    • A minimum of 45 years must be remaining on the lease after the end of the mortgage termand 55 years at the beginning
    • Property must be of standard construction
    • Property must be deemed suitable for residential occupation by the valuer
    • Property must be deemed to have good marketability by the valuer
    • Property must have buildings insurance on normal terms
    • Property must not have any agricultural restrictions
    • Property must not cover more than 10 acres
    • Farms and smallholdings are not acceptable
    • Ex-Local Authority flats/maisonettes with a value of less than £250,000 are not acceptable
    • Flats above 4 storeys must have a value of at least £300,000
    • Property must not be subject to any constraint preventing occupation for 52 weeks a year
    • Shared ownership properties are not permitted
  • The following will not be considered:
    • Properties affected by HS2
    • Property where material environmental hazards are present
    • Properties affected by Japanese knotweed
    • Properties affected by overriding interest
    • Mobile homes and houseboats
    • Grade I (England & Wales) listed buildings
    • Less than 10 years old without NHBC/Zurich Municipal guarantees or architects certificate
    • Flats directly above food premises

Apply online

Start your BlueZest application on your mobile, tablet or PC, whichever you prefer. For added flexibility you can also switch between devices at any stage.

You do not have to complete your application in one go; you can stop at any time. The information entered will be automatically saved, so you can resume and complete your application whenever convenient.

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