HANDY INFO TO HAVE AT HAND

Number of applicants

Four. For Limited Company application details of up to four directors or shareholders as applicants will be captured.  The applicants must cover a minimum of 75% of total shareholding.

Minimum age

21 years at application

Maximum age

80 years at application, 95 years at end of term.

Nationality

Applications from UK nationals and EEA member states must be traceable at a UK address. We will not lend to applicants who are not UK nationals and do not reside in the UK.

Acceptable proof of ID and address

If we are unable to verify all applicants using Electronic ID, proof of ID and residency will be required for each applicant.

Impaired credit

Please refer to the product guide for product credit profile criteria. Credit profile refers to the individual personal applicants.

Consumer buy-to-let

We cannot accept applications for consumer buy-to-let. A consumer buy-to-let is defined as an applicant with no other buy-to-let properties wishing to obtain a mortgage on a property that has either been inherited or has previously been occupied by the applicant or a related person at any time.

First-time buyer

Not acceptable. At least one applicant or Director must have owned, and still own, a residential or buy-to-let property for a minimum of 12 months.

First-time landlord

At least one applicant or Director must have owned, and still own at least one property (residential or Buy to Let) for a minimum of 12 months.

Minimum income

There is no minimum income requirement.

Employed

1 month’s payslip required, or P60 plus 1 month’s bank statement.

Self-employed

Latest SA302, accounts or Tax Calculation with corresponding Tax Summary, plus one month’s bank statement.

Contractors

1 month’s payslip or contract, plus one month’s bank statement.

Retired

Latest pension statement or evidence of other income source, plus one month’s bank statement.

Purpose

Purchase and remortgage

Remortgage

For remortgage within 6 months of purchase please refer. Contact our Intermediary Business Consultants for more information.

Repayment method

Capital and interest
Part and part
Interest only

Minimum loan

£25,001

Porting

Our loans are not portable.

Offer validity

3 months.
New build offers will be valid for 6 months.

Maximum loan and LTV

Minimum term

5 years

Maximum term

35 years

Deposit

Deposits are required to be evidenced.

Acceptable deposits

Individual savings
Limited Company/LLP reserves or working capital
Sale of property or pending sales
Sale of shares or investment
Inheritance
Equity from another property

Vendor/Builder gifted deposit

New build properties can have up to 5% builder gifted deposit
Converted properties are up to 5% considered on a case-by-case basis

Gifted deposit

All gifted deposits must be disclosed. Subject to a gift letter from deposit provider, identification and evidence of funds.

Family gifted equity

Up to a maximum 75% LTV and satisfaction that the transaction does not constitute consumer BTL.

Interest coverage rate (ICR) test applies to all cases on an interest-only basis

5 or more years’ fixed rate products: initial rate.
All other products: a nominal rate (currently 5.5%) or the initial rate +2%, whichever is higher.  All ICR tests are exclusive of any fees that can be added to the loan.

ICR

Minimum valuation

£50,000. For converted properties, HMO or any in London and the South East £120,000.

Maximum valuation

None

Audit valuation

Under the following circumstances, a second audit valuation will be required.

Properties valued over £1m – mortgage valuation report.

Tenure

Freehold or leasehold in England and Wales, absolute ownership or freehold in Scotland.

Locations

England, Wales and Scotland

Acceptable tenancies

AST of either 6 or 12 months if the property is in England.
Private Residential Tenancy, or Short Assured Tenancy (if prior to 1st December 2017) if the property is in Scotland.
Occupation Contract or Standard Contract if the property is in Wales.
Shared households and student lets
Corporate lets
Standard format tenancy

Unacceptable tenancies

Tenancies supported by housing benefit
Assured, protected or statutory tenancies
Holiday lets

Maximum bedrooms

6

Minimum valuation

£120,000

Maximum LTV

80%

Licence

HMO licence is required if deemed appropriate from the Local Authority.

Ownership

At least one applicant or Director must have owned, let and still own one or more Buy to Let property for a minimum of 12 months.

Applications

We will only accept applications from Special Purpose Vehicle (SPV) Ltd companies.

Acceptable Standard Industrial Classification (SIC) codes

68100 Buying and selling of own real estate
68209 Other letting and operating of own or leased real estate
68320 Management of real estate on a fee or contract basis
68201 Renting and operating of Housing Association real estate.

Directors or shareholders

For Limited Company applications we will accept up to 4 directors or shareholders. They must cover a minimum of 75% shareholding. If the company has less than 4 directors or shareholders, all must be included in the mortgage application.

Personal guarantees

Personal guarantees are required from all directors and shareholders.

Definition

Applicants with 4 or more mortgaged Buy to Let properties

Maximum number of properties

No maximum

Maximum portfolio value

£2,500,000 with The Mortgage Lender.

Evidence requirements

For 4-10 properties:

• Business plan
• Portfolio schedule

On request by underwriting, or for more than 10 properties:

• Business plan
• Portfolio schedule
• Cashflow statement
• Asset and liabilities declaration

Unencumbered properties

Details of  all properties held by applicants should be included in the Portfolio Schedule, including unencumbered properties.