Principality Building Society

Principality Building Society is a Wales-based building society that sells mortgages and savings accounts, including cash ISAs, direct to the public. On the mortgage side it offers residential, buy to let and holiday let lending, and it is known for lending to groups that some larger banks treat cautiously: first time buyers, the self-employed, first time landlords and people buying a second home¹. It also offers solutions for people buying a new build¹. On the savings side it offers accounts for smaller deposits and larger balances, and it accepts applications online, in branch and by post².

Its mortgage lending is limited to England and Wales: Principality's criteria state that it provides mortgages on freehold and leasehold properties in England and Wales only, so it does not lend on properties in Scotland or Northern Ireland³. Residential purchases can go up to 95% loan to value on loans up to £600,000, with larger loans available at lower loan to value ratios, up to £2,000,000 below 65%³. Buy to let lending goes up to 75% loan to value with a maximum loan of £750,000³.

Principality mortgages: residential, buy to let and holiday let

Principality's core mortgage range splits into residential lending and two landlord ranges: buy to let and holiday let¹. Within those it offers a wide range of fixed and variable products⁸, and it lends both directly through its own mortgage team and through mortgage intermediaries. Existing borrowers who want to raise capital can do so by way of further lending, a Lifestyle Loan, or a remortgage, and further advances can fund home improvements, purchase of a freehold or a transfer of equity³.

The residential range is sized in bands. At 95% loan to value the maximum loan is £600,000; at 75% to 90% it rises to £1,000,000; at 65% to 75% it rises to £1,500,000; and below 65% it reaches £2,000,000⁴. The maximum property value on a residential purchase is £1,000,000³. New build houses can also be bought at up to 95% loan to value, with a 90% cap for new build flats⁴. The minimum loan is £5,000 for a new residential advance and £25,000 for a new build, buy to let or holiday let⁴.

The landlord ranges have portfolio limits. A buy to let applicant must collectively own no more than 3 mortgaged buy to lets including the one being applied for, and a holiday let applicant no more than 2 mortgaged holiday lets³. Principality accepts first time landlords and first time buyers on its buy to let and holiday let products¹. Consumer buy to let, where the applicant or a related person has previously lived in the property, inherited it or received it as a gift, is available only to applicants who do not own other rental properties³.

Principality also lends on properties built using modern methods of construction. Volumetric and modular builds, panelised, hybrid and on-site types are generally accepted, other types are considered case by case, and every application is subject to the valuer's guidance³. If you are new to how mortgages work generally, the mortgages guide covers the basics.

Who can get a Principality mortgage

Residential applications are accepted from applicants aged 18 or over; for buy to let or holiday let applications the minimum lending age is 21⁴. The minimum repayment term is 5 years and the maximum term is 40 years, and all residential mortgages must be repaid on or before the eldest applicant's 85th birthday⁴. Up to 4 applicants are accepted on an application, and all 4 must live at the property⁴.

The deposit and purchase costs should come from the applicant's own resources, though gifts from family are acceptable⁴. Foreign nationals can apply where at least one applicant has a 2-year UK address history and 12 months remaining on their visa at the point of application⁴. Where the property is leasehold, the unexpired lease term at the start of the loan must be at least 85 years, and flats or maisonettes must be leasehold; flats above 5 floors require a working operational lift⁴. Principality can lend on ex local authority or housing association flats up to 10 storeys on developments where demand is strong⁴.

Interest only lending is available up to 75% loan to value, including a mix of interest only and repayment as long as total borrowing stays within that limit, with a maximum interest only term of 25 years⁴. Any interest only element must be repaid by the eldest applicant's 70th birthday, and documentary evidence of a repayment strategy is required⁴. For a downsizing strategy, the minimum equity in the property is £150,000⁴. Capital raising for debt consolidation is not acceptable on an interest only basis; on a repayment basis it is capped at 75% loan to value⁴.

How Principality assesses income, including for the self-employed

Employed applicants must have been in permanent employment for the last 3 months and be paying UK income tax. Only income paid in sterling and subject to UK taxation is considered, and applicants provide a month's personal bank statement plus the most recent month's payslip, or 4 payslips if paid weekly and 2 if paid fortnightly³.

For the self-employed, how income is assessed depends on the size of the loan. For loans up to 75% loan to value, Principality uses the most recent year's income; for loans above 75%, it uses the average of the most recent 2 years³. Affordability is based on net profit¹⁰. The range is built around several situations: limited company directors with one year's accounts, sole traders with one year's tax calculations, and CIS workers with 6 months' payslips³. Limited company directors with a 33% or greater shareholding provide 2 years of accounts or an accountant's certificate, with the most recent accounts no older than 18 months; sole traders provide 2 years of HMRC tax calculations, SA302s or online tax assessments with tax year overviews; CIS contractors are treated as self-employed with affordability based on the most recent set of accounts³. Labour only contractors provide 1 year's accounts with no more than 2 employers over the last 12 months³.

Some professional situations get specific treatment. Barristers in pupillage have the pupillage award treated as guaranteed income, blended with a tenancy projection provided by the chambers clerk; silks can use a 2-year average income, or a weighted latest income if higher and sustainable⁴. Bank nurses have their income averaged and annualised¹⁰. Applicants with rental properties should note that Principality will only consider earned income or rental income for affordability, not both³. Where at least one applicant has an earned income and the standard Universal Credit payment is not reduced or cancelled by deductions, Universal Credit is accepted at 100%³. An enhanced loan to income multiple of 5.5x is available where at least one applicant qualified in one of the listed professions within the last 5 years, on sole and joint applications, subject to a minimum household income of £30,000³.

A family member can also help. Principality accepts joint residential new mortgage applications between an applicant and a sponsor, where the sponsor can be a parent, grandparent, child, grandchild, sibling, spouse or legal guardian, with all of the sponsor's income used for affordability. The sponsor does not need to be on the deeds and cannot live in the property. These applications are for purchases only; remortgage applications are not accepted³.

Help to Buy Wales, shared ownership and Right to Buy

Help to Buy - Wales is a Welsh Government scheme that provides a shared equity loan to buyers of new-build homes¹¹, with the loan worth up to 20% of the purchase price¹². It is open to first-time buyers and existing homeowners who are buying a new-build property, and applications are made through GOV.WALES¹². Help to Buy Wales Ltd manages the scheme on behalf of the Welsh Government¹¹. Principality will consider Help to Buy Wales applications with as little as a 5% deposit⁴.

Shared Ownership - Wales works differently: you buy an initial share of between 25% and 75% of a property and pay rent on the remaining share¹³. Principality's criteria require that a shared ownership property must be leasehold³. Right to Buy, for council tenants buying their home at a discount, is also supported: Principality can lend the total discounted purchase price up to 95% of the property value⁴. One restriction applies: it does not lend additional funds for home improvements on a Right to Buy application⁴.

If you are weighing up these schemes against a standard purchase, the home buying guide explains each route, and the guide to money in Wales sets out where Welsh schemes differ from those in England.

Buy to let and holiday let lending: the extra rules

Beyond the portfolio limits described above, the landlord ranges carry their own conditions. Principality will not lend on third party or sub lettings, which includes company lets and local authorities³. Holiday let applications are non-regulated and considered on an advised basis, and Principality will accept applications from applicants who do not currently own and live in their own home³. The holiday let property itself must be a house that is not listed, has no more than two storeys and has a standard construction³.

For let to buy, where you keep and let your existing home rather than selling it, Principality needs a copy of the Assured Shorthold Tenancy Agreement for England or the Written Statement of Standard Occupation for Wales, or a letter from the letting agency confirming the intention to let, plus a consent to let letter if another lender is involved³. Rental coverage requirements apply: 145% of the monthly mortgage payment at an assumed rate of 5.50% for 5-year fixed products, and 7.65% as the rental coverage figure for 2-year fixed products³.

If you want to let your own home temporarily rather than buy to let, consent to let requires at least six months of payments on the residential mortgage first, an exception being made for members of the British Armed Forces or Clergy³. The guide to renting out your property covers the differences between these arrangements.

Overpayments and early repayment charges

On all non-flexible residential, buy to let and holiday let mortgages, the overpayment allowance is 10% of the outstanding balance as at 1 January every calendar year³. Overpayments can be made regularly or as occasional lump sums, and they are flexible: you can stop overpaying at any time⁵. Overpayments above the annual allowance may incur an early repayment charge, and the size of any charge depends on the mortgage product³. When paying by online bank transfer or standing order, the reference to use is your mortgage account number, excluding any dashes⁵.

Early repayment charges also arise when you leave or change a deal early. If you switch to a new deal more than 6 months before your current one ends, you may need to pay an early repayment charge¹⁴. Where redemption of the loan is 90 calendar days or less from the expiry of a product's special rate restriction, the charge is treated differently under the portability rules⁴. Product fees can be added to the loan as long as the total borrowing meets the affordability calculation, but all product fees are non-transferable⁴.

Moving home or reaching the end of a deal

Most of Principality's mortgage deals are portable, so you may be able to take your mortgage with you when you move¹⁵. Porting means transferring the mortgage loan on its existing terms, and the process involves closing your existing mortgage account and opening a new one¹⁶. You and the new property must meet Principality's current lending criteria at the time, and you cannot port a mortgage on the same interest rate if you already own the new property¹⁶. If you reduce the amount you port, an early repayment charge may apply to the remaining balance of your existing deal; if your deal is due to end within the next 6 months, Principality can waive the early repayment charge on application of the new mortgage¹⁵.

As a deal nears its end, Principality contacts customers by email or post to set out what is happening and the options¹⁷. You can switch to a new deal over the phone, or online if you are comfortable proceeding without advice¹⁴. Buy to let mortgages can be switched online or over the phone, while holiday let switches must be done by calling¹⁴. If you are struggling with rising mortgage rates, a dedicated Principality support team is open Monday to Friday 9:30am to 5pm¹⁸.

Principality savings and ISAs

Principality offers savings accounts with options for smaller deposits and larger balances, and applications can be made online, in branch or by post². The savings guide explains the account types generally available and how they differ.

Cash ISAs can be opened with Principality, and existing ISAs can be moved in or out. To transfer an ISA to Principality, you contact the new provider and follow its official ISA transfer process: you can complete the ISA transfer form when applying online, log in to your online profile to submit a transfer application, or download a cash ISA transfer form and post it or drop it at a branch¹⁹. You can transfer all, or part, of what you paid in in previous years²⁰. Transferring out to another provider works the same way in reverse: you give the new provider your Principality savings account number as the reference, with your own name as the payee²⁰. The ISA guide explains why using the official transfer process matters for keeping your ISA tax-free.

The society also supports customers who lose capacity or die. An attorney with a registered power of attorney can make transfers and payments, open a new savings account, manage mortgages, and manage or sell property for the donor²¹. After a death, the bereavement team can be contacted by visiting a local branch, emailing the form, or writing to the Bereavement Team²². Closing an account after a death involves completing the bereavement closure form and sending it in person, by email or by post, and the time it takes to close a savings account, ISA or mortgage depends on each application's circumstances²². Which sections of the form are completed, and what identification is needed, depend on the balance: up to £19,999, between £20,000 and £39,999, or £40,000 and above or where probate has already been granted²². Members of Principality do not need to provide identity documents²².

Applying, contacting the society and credit checks

Mortgage applications start with a phone call. Principality's mortgage experts can tell you how much you could borrow and give a Decision in Principle in around 30 minutes, and the team is open Monday to Friday 9:30am to 5pm and Saturday 9am to 1pm⁶. Before an offer, Principality completes a credit check and a home valuation, and it aims to get you an offer within 15 working days⁶. Employed applicants are asked for 3 of their most recent payslips⁶. Principality arranges a desk valuation on any purchase or remortgage application; for all other application types a physical valuation is required³.

Before any full application, an initial conversation does not commit you to a credit search: Principality says it has options to support customers contacting its mortgage team without impacting their credit score¹⁸. The credit scores guide explains how searches are recorded and what they mean for future borrowing.

Existing borrowers who want to borrow more can book a call back with one of Principality's mortgage experts over the phone²³. Further lending is subject to meeting the society's lending and affordability criteria, and permitted uses include home repairs and improvements, consolidating debts, and paying for a purchase or life event²³. The maximum loan to value for additional borrowing is 90% on residential properties and 75% for buy to let or holiday let properties²³. If you remortgage to Principality, it offers a free valuation during the application and may be able to cover the costs of some of your legal fees¹. Where a product allows legal fee assistance, Principality uses either Optima Legal or O'Neill Patient Solicitor⁴.

Complaints: what customers raise and how Principality handles them

In the first half of 2026, Principality opened 856 complaints in banking and credit cards, 369 in home finance and 1 in insurance and pure protection²⁴. It closed 857 banking and credit card complaints and 367 home finance complaints in the same period²⁴. Of the complaints closed, 63% of banking and credit card complaints and 47% of home finance complaints were upheld in the customer's favour²⁴. The main cause of home finance complaints was general admin and customer service, and the main cause of insurance complaints was advising, selling and arranging²⁴. Measured against its size, that is 1.19 complaints per 1,000 accounts in banking and credit cards and 3.69 per 1,000 balances outstanding in home finance²⁴.

Principality no longer sells insurance, decumulation and pension, or investment products, but it continues to investigate and resolve complaints relating to them²⁴. If you are unhappy, complain to the society first; if it cannot resolve the matter, a complaint about a regulated product or service can be referred to the Financial Ombudsman Service. The consumer protection guide explains how the ombudsman process works and the time limits involved.

Scam reimbursement: when Principality must refund you

If you have made a payment from your account through Faster Payment or CHAPS and it turns out to be a scam, you can ask Principality to consider reimbursing you²⁵. You need to report the scam as soon as possible and within 13 months from the last payment involved²⁵. Reimbursement does not apply to cash or cheque payments²⁵. If you are eligible, you will usually receive the money within five business days of your request, though Principality may need up to 35 days if it is waiting for additional information²⁵. In some cases you may need to pay an excess of up to £100, which is looked at on a case-by-case basis, and exceptions may be made for vulnerable customers²⁵. Reimbursement might be refused if it is found that you acted fraudulently or with gross negligence²⁵. Principality states a reimbursement limit of £85,000²⁵.

Reports of fraudulent payments are handled by the savings support team, which is open Monday to Friday 9:30am to 5pm and Saturday 9am to 1pm²⁶. If you have any worries that cheque fraud may have affected your account, Principality asks you to call it²⁵. The scams and fraud guide explains the common types of scam and how to report them.

How money with Principality is protected

Principality Building Society is authorised by the Financial Conduct Authority, reference number 155998, with authorisation effective from 1 December 2001, and its permissions include entering into regulated mortgage contracts as lender and accepting deposits⁷. It appears on the Bank of England's Prudential Regulation Authority list of building societies incorporated in the UK²⁷. As a deposit-taking building society, savings held with it are covered by the Financial Services Compensation Scheme, and mortgage customers are covered by the society's regulated status and by the Financial Ombudsman Service for complaints. The consumer protection guide sets out what the FSCS covers and where its limits stop.