Why choose Rafidain Bank?

Age - you must be at least 18 at the time of applying for your mortgage with us, and the mortgage term must not extend beyond your 75th birthday.

Credit and payment history - as part of the mortgage application process, we check the credit commitments you have declared and your credit and payment history through a credit reference agency. We will always ask for your permission before we do this. If you have an adverse credit history, such as bankruptcy or a County Court Judgement, your application may be declined.

UK Residency - Applicants must be UK residents. However, we may still be able to accept your mortgage application if one of the named applicants for the mortgage is a permanent UK resident.

Affordability - we take a range of factors into account to determine how much you can borrow. You will need to ensure that you have a sufficient amount of your income remaining after your mortgage repayments, to cover additional outgoings, such as household and lifestyle costs. We will check the accuracy of this information.

Affordability is based on current interest rates although these may rise. This calculation will be based on the ability to repay on a capital and interest basis.
You can get an indication of how much you could borrow using our quick calculator. When you apply, we will ask you for some more detailed information to give you a decision as to whether we can lend you the amount you have requested.

Maximum loan size - The maximum amount we will lend you depends on things like your loan to value (LTV), the specific mortgage product you choose and the mortgage term. The maximum amount we will lend will depend on your personal circumstances. If you wish to discuss this further, please feel free to contact us.

Minimum loan size - The minimum amount you can borrow depends on whether you are a new or existing customer and the specific mortgage product you want to apply for.  When you view our mortgage rates, our mortgage finder tool will display the mortgage products available to you based on how much you are looking to borrow.

Your loan to value (LTV) - the loan-to-value ratio is the comparison between the amount you want to borrow and the value of your home expressed as a percentage. Generally, the lower the percentage (i.e. the lower your ‘loan to value’), the lower the interest rates available to you.

The maximum loan to value available to you depends on:

• Your borrower type
• If you are buying a home, whether the property you are purchasing is a new build
• When you view our mortgage rates, the loan to value ratio scale shows the maximum LTV and the boundaries at which interest rates change

Employment type and status - your employment type may influence whether or not we can lend to you and what we will need as proof of your income. Proof of income is required for all mortgage applications, as we will need evidence of any income taken into account when calculating the amount you can borrow. You will be advised of what proofs we require as you proceed through your application.

Employed - If you are in permanent employment (i.e. on an open ended contract), we may need both your latest P60 and payslip as proof of your income. Depending on your circumstances, we may ask for other forms of proof of income. 

Employed on a fixed term contract - you must have been employed on this basis (but not necessarily on the same contract) for the last 12 months, or have 2 years left on your current contract. In this instance, we will need a copy of your employment contract as proof of your income.

Employed outside of the UK - we may be able to accept your mortgage application if one of the named applicants for the mortgage is a permanent UK resident and will occupy the property. We will need your latest P60 and payslip as evidence of your income.

Self employed - in most circumstances, you can apply for a mortgage with us if you are a sole trader, a partner in a business or a director of a limited company and you have been trading for at least 2 years. We will need an Accountant’s certificate as proof of your income and we will use the lower of the last 12 months income, or the average of the last 2 years income. If you are self employed outside of the UK, we cannot accept your application. 

Second and third jobs - when calculating the amount you can borrow, in most circumstances, we can take into account income from a second job. We may need both your latest P60 and payslip as proof of your income. Any income you receive from a third job cannot be used.

Temporary employment - If you are in temporary employment, we can accept your mortgage application provided you have been in regular employment for the last 12 months. We will need to confirm this by obtaining a reference from the agency you are employed with.

Property type - The property must be acceptable to us for a mortgage, for example, some construction types will be unacceptable*. We do not lend for Self Build properties. 

If you are buying a New Build property, there are restrictions on your loan to value (LTV). If you are buying a new build flat, your loan to value must be 75% LTV or lower. If you are buying a new build house, your loan to value must be 85% (LTV) or lower. 

*There are certain property types of non-traditional construction that we may not lend on. 

If you have or are proposing to buy a property of non-traditional construction you should contact us to discuss your individual requirements.