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Axis Bank

Mortgage Type

Buy To Let

Property Value (min)

£100,000

Advance (min)

£75,000 for 75% products

Advance (max)

£750,000 to 75% LTV
£751,000 - £1,000,000 upto. 65%
Loans over £1,000,000 will be up to 65% LTV and will be referred.

Term (Max)

25 years

Minimum Age

25 years for first applicant & 21 for any subsequent applicants at application stage.

Maximum Age

80 years at the end of the mortgage term. ***** Older applicants, on the same application, can exceed the 80 year maximum subject to underwriter approval.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Yes

Income (min)

No minimum income (£40k income minimum for Expatriates)
Will consider personal background income that show on the SA302 as zero but tax submission shows an income from properties

Restrictions

No restrictions on numbers with other lenders. Maximum of 5 loans with Axis up to £5m in total.
Restricted to 1/3 of block size and subject to a max of 10.

Applicants required to hold 2 BTL properties for 2 years unless applicant 2 is spouse. Where not a spouse, subsequent applicants to hold at least 1 existing BTL property for two years.

All applicants must have been active within Buy to Let for at least the past 2 years.

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Unacceptable Properties: The following properties are deemed to be unacceptable for the purposes of these guidelines:
- Common hold properties
- 100% timber construction.
- Steel frame construction.
- Properties with restrictions as regards to occupancy e.g. agricultural, retirement flats etc.
- Properties having actual or potential structural movement
- Determined as unacceptable security by an appointed valuer.
- Less than 10 years old without NHBC guarantees or equivalent certificate.
- Not wholly owned by the borrower (shared ownership).
- Mobile homes / house boats.
- Properties for commercial usage.
- Freehold flats or maisonettes.
- Properties containing Mundic Block materials.
- Studio flats less than 30 SQM is size.
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STUDENT LETS: Considered on a case by case basis.
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Acceptable SIC Codes for SPV Limited Companies: -

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.

Let to Buy (Turning Residential into Buy to Let)

Yes, must already own 2 BTL properties.

DWP Tenants

DWP tenants accepted so long as they are named as the tenant on the AST

Ex-Local Authority Properties

Houses - Yes
Flats - Yes. the bank requires that 50% of the block is in private ownership. Blocks over 5 floors can be considered. Deck access can be considered

Minimum years remaining on leasehold property

50 years unexpired term of at least at the end of the mortgage term.

Minimum Ownership

No time frame but up to maximum of 75% subject to 90% of purchase price and 90% of works carried out.

A maximum LTV of 75% will be available subject to this not exceeding 90% of the initial purchase price.

Permanent rights to reside and remain

Yes (unless Ex-Pat).
Non-British citizens must have been continually resident in the U.K. and paying income tax in the U.K. for at least 2 years immediately prior to application, unless they previously resided in one of the countries for which visa’s are not required to work in the UK (broadly EEA countries).
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Proof of payment of U.K. tax is required.
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Other non-British applicants must be able to provide a certified copy of their valid passport. This must include the United Kingdom Visa page evidencing:
permission to work in the UK (if relevant) and permission to remain indefinitely or an expiry date which must be after the repayment date of the loan.
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The Bank will consider applications from Indian residents or NRIs having an existing relationship with Axis Bank Group for a minimum period of 2 years, irrespective of their domicile or tax status.
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Other than as noted above, the Bank will not lend to other Overseas Applicants who are defined as those who have either:
- never been resident and liable to pay income tax in the UK; or
- British Citizens who have not paid UK income tax within the last 5 years and who are now working abroad.

Ex-Patriates

Minimum £40k income
All standard criteria must be met.
Must be British citizens who have been resident and liable to pay income tax in the UK within the last 5 years and who are now working abroad.
The applicant(s) must have a UK bank account and existing UK property.
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The applicant must provide evidence of the expatriate nature of their employment, for example a copy of their contract of employment or in case of self-employed persons their last 3 years return or a declaration from an independent accountant or financial consultant acceptable to the Bank.
It is expected that Ex-Pat applications will be from typically professional applicants, with a stable employment record with a verifiable firm.

New Builds

Accepted up to 75% to £500,000
For 65% LTV above £500,000.

Credit Score

Credit check only

Rental Calculation

None 5 year fixed rate: –
Basic rate – 125% @ payrate + 2% (min 5.5%)
Higher rate – 145% @ payrate + 2% (min 5.5%)
Ltd Co – 125% payrate + 2% (min 5.5%)

5 year fixed rate: –
Basic rate – 125% @ payrate
Higher rate – 145% @ payrate
Ltd Co – 125% payrate

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High Net Worth: –

If client has £3m net asset position then they will consider 100% ICR + £300k p/a income (by referral to Axis)

£ and £ remo’s
125% @ 5%

Background rental stress for portfolios for L 4 L remortgages must meet 125% @ 5.5% for Ltd Co and individuals

Historic CCJ’s & Defaults

CCJ's not considered in last 24 months, bankruptcy not considered with previous 5 years, late payments are considered. Previous repossessions are not.
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CCJ’s registered in excess of 24 months prior to application may be considered where:
they are for less than £500 in aggregate and are limited to a maximum of 2.
- For any CCJ’s to be ignored, a certificate of satisfaction must be obtained if not evidenced on the credit search or where unsatisfied the bank must be happy with the explanation provided.
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Defaults and missed payments: -
Are to be assessed by the underwriter but may be allowable following review of a written explanation from the borrower.
- If arrears were more than 24 months ago and worst status 1 and now in order then no explanation is required.

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

4

Countries

Will lend in whole of mainland England and Wales. Not Isle of Wight

Access

Access to Axis Bank is available via selected packagers only

Missed mortgage payments

Allowed 1 in 24 months - any more than 1 missed in last 24 months is subject to underwriting approval.

Property Type / Commercial

Residential Investment properties only, HMO's (Maximum of 6 bed), Multi Unit Freeholds (up to 10 flats 1 title), Expatriates, Holiday Lets and Ltd Companies (Limited Companies must be NON-Trading SPV's);
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Maximum of 5 loans to £5 million and another 5 considered after six months seasoning on the first five, capped at no more than a third of the portfolio, after 5, and maximum lending across all 10 of £5 million.

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For Flats in a block of over 5 floors, this can be considered
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The Bank will consider lending on the following property types
- Standard Houses and Flats
Detached, Semi-Detached, link-Detached, terraced, cottage, bungalow, apartment, maisonette, duplex, penthouse, studio
- Houses of Multiple Occupation ( HMO’s)

Can consider Licensed and unlicensed HMO's

Maximum 6 tenants with individual AST’s.
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Multi Let Properties
Non licensed HMO – (House Shares acceptable)
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Maximum 6 tenants with individual AST’s

- Multi-Unit Freehold Blocks (MUFB)

Multiple self-contained residential units held under a single freehold title – subject to a maximum of 10 units.

Bank will lend on whole blocks with up to 10 units.

The Freeholder and leaseholder should not be the same legal entity although may be connected.

Concentration
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In order to avoid risk concentrations, if a unit comprises of more than 3 parts each with separate legal title, the maximum number the Bank will lend against in any one unit is 1/3rd, as detailed below:

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Exposure Limit Property - Unit with 1 to 6 parts - Maximum of 3, Unit with 7 to 12 parts - Maximum of 4, with addition 1 part being added to every 3 additional parts in the unit, subject to a maximum Bank exposure of 10 units.

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Property above Commercial:
Where the building could be classed as good quality and with higher end commercial premises, such as banks, estate agents, art galleries, high end retail outlets or some modern purpose built blocks that may include some wider retail outlets. Axis will not consider properties where the premises are not of high quality and are in the immediate vicinity of restaurants, public houses or takeaways.
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Acceptable SIC Codes for SPV Limited Companies: -

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.
*******
Can consider AirBnB.

Location

Will lend in England and South Wales only (Glamorgan counties & Gwent)

Type of Credit Search conducted at AIP stage

Soft foot print, hard foot print upon full application

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio

– A minimum rental stress of 125% at 5.5% for individuals and 125% @ 5.5% for Limited Companies

Portfolio Landlord Criteria

– Up to 5 (10 for existing Axis customers) mortgaged properties with Axis Bank  to an aggregate borrowing of £5m

– No limit on the size of portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases

– Asset & Liability Statement – All cases (within the lender application form)

– Business Plan – All cases (within lender application form)

– Cashflow Statement – Not required

*Lender will accept client versions so long as covers the lenders minimum requirements