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. Maximum loan amount for First Time Landlords £350,000.
Covid payment deferrals
If the application is from an existing customer, any unexpired payment deferral on an existing TML mortgage must either be brought up to date with the payment deferral ceased and the deferred interest paid in full before we can consider any further lending or the deferred interest capitalised. In both examples there must be 2 consecutive payments made post-expiry/cessation of the payment deferral.
Minimum income & Employment status
There is no minimum income requirement. One or more applicants must be employed/self-employed or be in receipt of pension income. Proof of income is not required in every case, but may be required at U/W discretion. If requested the below outlines evidence required.
Employed
1 month’s payslip required, or P60.
Self-employed
Latest accounts or Tax Calculation (SA302) with the corresponding Tax Year Overview.
Contractors
1 month’s payslip or contract.
Retired
Latest pension statement or evidence of other income source.
Proof of basic rate tax status - All applicants
Where all applicants are declared as basic rate tax status during application, proof of basic rate tax status will be required. Where ICR meets 140%, we will assess the cases as such and will not require proof of tax status.
Acceptable proof is tax code status letter/payslip/p60/tax calculation plus tax year overview. Other items may be acceptable on a case by case basis.
Purpose
Purchase and remortgage
Remortgage
Remortgages within 6 months of purchase can be considered. Please contact The Hub 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
Standard | Specialist | |||
---|---|---|---|---|
Maximum loan | Individuals LTV | Limited Companies/LLP LTV | HMO & Multi-unit Blocks LTV | New builds and flats above commercial LTV |
£600,000 | 75% | 75% | 75% | 75% |
£1,000,000 | 75% | 75% | 75% | 70% |
£1,500,000 | 75% | 75% | 60% | 70% |
£3,000,000 | 70% | 70% | N/A | N/A |
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
Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members. Gifts from non – family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to TML Gifted Deposit/Equity Form 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. Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members. Gifts from non – family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to TML Gifted Deposit/ Equity Form from deposit provider and identification.
Void Reserves
Please provide evidence that the applicant holds a minimum of 3 months of funds to meet mortgage payments in instances of rental voids. Please provide a full copy of a bank or deposit statement/bank data in an electronic format from an approved source demonstrating an acceptable level of savings is available.
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
Tax Rate | Individuals | Limited Companies/LLP | HMO & Multi-Unit Blocks | New builds and flats above commercial |
---|---|---|---|---|
Basic rate tax payer | 125%* | 125% | 140% | 125% |
Higher rate tax payer | 140% | 125% | 140% | 140% |
* Where all applicants are declared as basic rate tax status during application, proof of basic rate tax status will be required. Where the ICR meets 140%, we will assess the cases as such and will not require proof of tax status
Acceptable proof is tax code status letter/payslip/p60/tax calculation plus tax year overview. Other items may be acceptable on a case by case basis.
Minimum valuation
£50,000. For converted properties, HMO or any in London and the South East £120,000.
Maximum valuation
None
Audit valuation
TML reserve the right to undertake an audit valuation (a second full property inspection) on a case by case basis.
Tenure
Freehold or leasehold in England and Wales, absolute ownership or freehold in Scotland.
Locations
We will consider lending on residential properties in mainland England, Wales & Scotland. We will also consider properties on the Isle of Wight & Anglesey. Applications in relation to properties in Northern Ireland are not acceptable.
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
Assured, protected or statutory tenancies
Holiday lets
Ex Local Authority
Max LTV for Ex Local Authority is 75%
Click here for full BTL property criteria.
Maximum bedrooms
6
Minimum valuation
£120,000
Maximum LTV
75%
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
£5,000,000 with The Mortgage Lender.
Evidence requirements
For 4-10 properties:
On request by underwriting, or for more than 10 properties:
Unencumbered properties
Details of all properties held by applicants should be included in the Portfolio Schedule, including unencumbered properties.
There’s always someone here for you, all you have to do is holler and we’ll come running.
Contact UsIf you want to be our friend or are already one of the family then just click the right button and you’re off.
Visit our customer site