Birmingham Bank
Mortgage Type
Specialist BTL/CommercialProperty 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 yearsMinimum Age
21 yearsMaximum Age
85 yearsFamily 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)
NoDWP Tenants
NoEx-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 termMinimum 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.
Permanent rights to reside and remain
Yes, required.Ex-Patriates
NoRental 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
CCJsNone 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 acceptanceMaximum number of applicants
4Countries
England and Wales only.UK and EEA Nationals are acceptable for lending purposes.
EEA members are:
Austria, Belgium, Bulgaria, Croatia, Cyprus (Greek Cypriots only), Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
Access
Via certain packagers, of which 3mc are one.Regulated BTLs
NoMissed mortgage payments
Max 2 in last 36 monthsProperty Type / Commercial
Standard BTL, BTL Flats, Flats above commercial subject to valuers comments, Small HMO up to 6 rooms, Small MUFB up to 6 unitsLocation
England and Wales only.Type of Credit Search conducted at AIP stage
Soft searchPortfolio 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