Experienced and first time landlords considered
Our key buy to let lending criteria is detailed below.
- Maximum 70% loan to value;
- Minimum loan amount of £50,000;
- Maximum loan amount of £350,000;
- Minimum £75,000 valuation (£250,000 within M25).
Applicants must be aged 25 or over and the term cannot extend past the eldest borrowers 85th birthday. At least one applicant must earn a minimum of £20,000 and they must own their own residential property.
Experienced landlords and self-employed
We will underwrite your client as an experienced landlord if they currently hold, or have held at least one buy to let property within the past 12 months. In such cases the rental income received must cover:
- Basic rate taxpayers: 130% at a reference rate of 5.5%
- Higher rate taxpayers: 140% at a reference rate of 5.5%.
Applications for capital raising can only be considered where funds are for the purpose of improving the mortgaged property or to extend your clients portfolio.
First time landlords
We can consider applications for first time landlords and where your clients are purchasing on a consumer buy to let basis. Your clients main residential property must be the highest valued asset and rental income must cover:
- Basic rate taxpayers: 135% at a reference rate of 5.5%
- Higher rate taxpayers: 145% at a reference rate of 5.5%.
If your client has a portfolio that does not exceed three mortgaged properties on completion of their application then we can consider your case. We don't have a limit on the overall portfolio size, however a maximum internal exposure of £1million held on mortgage with us does apply.
The following exclusions apply to our standard and portfolio buy to let mortgage ranges:
- Studio or one bedroom apartments are not accepted;
- Applications on local authority flats, flats in block of more than five storeys or flats above commercial premises are not accepted;
- Applications from limited companies cannot be accepted;
- Regulated applications or inter-family transactions; and
- Multiple occupancy, DSS tenants, student let or sub-letting.