Birmingham Bank

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£135,000

Advance (min)

£100,000

Advance (max)

£2,000,000

Max 75% up to £2m (portfolio of properties,)
Max 75% up to £1m for single property (standard or HMO/MUFB)
Max 70% >£1m- £2m for single property (standard or HMO/MUFB)

Term (Max)

25 years

Minimum Age

21 years

Maximum Age

85 years

Family Cash Gift Deposit

Acceptable unless the property is being purchased from the family member from which the gift originates. The gift must not be repayable and the person providing the gift cannot have a financial or legal interest in the security.

Family Gift of Equity Deposit

Acceptable unless the property is being purchased from the family member from which the gift originates. The gift must not be repayable and the person providing the gift cannot have a financial or legal interest in the security.

Income (min)

No minimum income required.

Restrictions

Property subject to planning or occupancy restrictions are not permitted.

Let to Buy (Turning Residential into Buy to Let)

No

DWP Tenants

No

Ex-Local Authority Properties

Ex LA- Houses are acceptable.
Ex LA-Flats currently not acceptable

Minimum years remaining on leasehold property

85 years at the start of the mortgage term

Minimum Ownership

Remortgages are not acceptable where the security property has been owned, or the existing mortgage has been in place, for less than 6 months.

The exception to this rule is where the application is to exit a Bridging facility.

In these circumstances, the existing Bridging loan must have been in place for at least one month and any increase in capital value from the original purchase price must be validated by evidence that improvement works have been completed.

If no improvements have been undertaken lending should be based on the original purchase price.

Loans for the payment of outstanding tax liabilities, consolidation of bad debt or to support businesses in financial difficulties are not acceptable.

Permanent rights to reside and remain

Yes, required.

Ex-Patriates

No

Rental Calculation

Standard BTL single and multiple properties

Basic Rate Tax payer & Limited Co = 125%
Higher Rate Taxpayer = 145%
HMO/MUFB single, multiple and mixed properties

Basic Rate Tax payer/Ltd Co – 130%

Higher Rate Taxpayer – 160%

Historic CCJ’s & Defaults

CCJs
None in last 36 months

Defaults
None in last 36 months

Secured arrears
None in last 12 months Maximum 2 in last 36 months

Unsecured arrears
Maximum 2 in last 36 months

Bankruptcy/Debt Relief Order
None (6-year history)

IVA/Debt Management Plan
None (6-year history)

Repossession
None (6-year history)

Valuation Fees

Confirmed upon DIP acceptance

Maximum number of applicants

4

Countries

England and Wales only.

Access

Via certain packagers, of which 3mc are one.

Regulated BTLs

no

Missed mortgage payments

Max 2 in last 36 months

Property Type / Commercial

Standard BTL, BTL Flats, Flats above commercial subject to valuers comments, Small HMO up to 6 rooms, Small MUFB up to 6 units

Location

England and Wales only.

Type of Credit Search conducted at AIP stage

Soft search

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Minimum ICR or 125%
– Minimum overall LTV of 75%

Portfolio Landlord Criteria

– Up to an aggregate borrowing of £2m with Birmingham Bank
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements  Portfolio Schedule – All cases
– Business Plan – On some cases
– Asset & Liability Statement – On some cases
– Cashflow Statement – On some cases
* Lender will accept client versions for all documents