Dudley Building Society
Mortgage TypeBuy To Let
Property Value (min)
£1,000,000 to 80%. Applicants will be required to own their residential property.
Minimum Age18 years
Maximum AgeNo Maximum
Family Cash Gift DepositYes
Family Gift of Equity DepositYes
Income (min)£20,000 (non-rental) per application
• For new applicants in the higher income tax bracket, the amount earned in rental income must cover at least 140% of the interest only mortgage payment.
• For new applicants in the basic income tax bracket, the amount earned in rental income must cover at least 125% of the interest only mortgage repayment.
• For re-mortgage customers, where there is no additional lending (regardless of whether their current mortgage is held with the Society or not), the rental income must cover at least 130%. Re-mortgage customers in the higher income tax bracket must cover at least 140% of the interest only mortgage payment.
RestrictionsNo more than 25% exposure in blocks of 4 flats or more. For blocks of 3 flats or less, will only lend on one property.
Storeys in a flat: If a flat is built in or after year 2000 we can now go above 5 storeys.
Applicant(s) should ordinarily be existing owner occupiers. Consideration will be given where an applicant does not own their own home, subject to the underwriter being satisfied with the underlying rationale.
Studio flats are considered subject to valuers comments.
Let to Buy (Turning Residential into Buy to Let)Yes
Ex-Local Authority PropertiesWe cannot accept a local authority or av ex-local authority flat and maisonette unless located within the M25, a maximum LTV of 65%, minimum £200k valuation and satisfactory valuer comments regarding demand and re-saleability.
Houses – Yes
Minimum years remaining on leasehold propertyFor Capital and Interest 85 years from the start of the mortgage term Interest only below 50% LTV 85 years from the start Interest only above 50% is 85 years the end of the term
Minimum Ownership6 months minimum ownership before remortgage can be considered.
Permanent rights to reside and remainYes (unless Ex-Pat)
Ex-PatriatesThe maximum loan to value is 70% for BTL & 80% for Residential
The minimum loan is £25,000
Dudley will calculate the sterling equivalent by applying the exchange rate on the day of assessment
Foreign Currency – Income (where some or all of the borrower’s income is denominated in a foreign currency, regardless of where their day to day work activities occur).
Foreign Currency – Repayment Strategy (where the borrower will repay part or all of a mortgage which is partially or wholly conducted on an Interest Only basis, utilising monies or other assets which are denominated in a foreign currency e.g. the sale of a foreign holiday home).
Applicants must be UK citizens who are temporarily resident abroad.
For Residential Properties; it must be the customer’s intention to return back to the UK with this property being their main residence.
Lending can only be secured upon property in England and Wales only. The applicant must own one existing property in the UK at which we can trace them (this can be either their residential property or a BTL property).
Mortgage payments must be paid via direct debit from a UK bank account.
New BuildsHouses - Yes up to product maximum
Flats - Yes, up to max LTV
Credit ScoreDudley BS - Credit check, do not credit score.
Basic-rate tax payers: 125% x 5.5%.
Higher-rate tax payers: 140% x 5.5%.
Pound for Pound remortgages (regardless of tax band): 130% x 5.5%.
If a remortgage with capital raising;
Basic-rate tax payers: 130% x 5.5%
Higher-rate tax payers: 140% x 5.5%
For Consumer BTL’s a full affordability assessment will be required.
Valuer must confirm the gross monthly rent achievable (based upon unfurnished figure).
Historic CCJ’s & DefaultsApplicant(s) must satisfy the following criteria:
Mortgage applications up to 80% LTV:
• No missed payments in last 12 months on any (previous or current) mortgage, other secured loan or rent, and no arrears in months 13-24 (counting backwards from the present date), where the cumulative amount overdue at any point reached three or more monthly payments. No current arrears.
• No more than 1 missed payment in last 12 months on any (previous or current) unsecured loan or credit card, and no arrears in months 13-24 (counting backwards from the current date), where the cumulative amount overdue at any point reached three or more monthly payments. No current arrears.
• A maximum value of CCJs registered more than three years prior to application (satisfied) of £5,000 and a maximum number of two instances.
• A maximum value of defaults registered within three years of application (satisfied) of £1,000 and a maximum number of three instances.
• A maximum value of defaults registered more than three years prior to application (satisfied) of £5,000 and a maximum number of three instances.
Other than that:
a) Three or fewer Communication supplier defaults of up to £150 each may be ignored for the purpose of calculation value under points 3 and 4 above (where an applicant has four or more, all of them will be taken into account).
A satisfactory explanation for any adverse credit (including any disregarded under point (a) must always be obtained.
For Mortgage applications above 80% LTV, applicant(s) must satisfy the following criteria:
• No missed payments in last 12 months on any mortgage, other secured loan or rent and no more than 1 missed payments in the last 2 years. No current arrears.
• No more than 1 missed payment in last 12 months on any unsecured loan or credit card and no more than 2 missed payments in last 2 years. No current arrears.
• CCJ(s) with a total not exceeding £2,500 registered more than 3 years ago are acceptable if satisfied more than 12 months ago.
• Defaults – one or more with a total value not exceeding £500 issued more than 12 months ago are acceptable, as long as satisfied by time of application.
Valuation FeesValuation fees paid direct to lender at the lender fee scale.
Maximum number of applicants4
CountriesWill lend in England and Wales
AccessAccess to Dudley BS is available via selected packagers only.
Property Type / CommercialSingle unit properties
• Joint mortgage, Sole Proprietor
• Interest-only, Part & Part and Capital & Interest
• Consumer Buy-to-Let applications
• Terms up to 40 years
• No upper age limit
Holiday lets - Considered - they have a specific product range - see product guide.
• The product is available for purchase and remortgage
• Loans of up to £500,000 can be considered
• Maximum 80% LTV
• Our existing BTL assessment rules apply. Evidence of rental income and maintenance costs will be required
• The property must solely be used as a Holiday Let. Residential use and letting on a room-by-room basis is not permitted
• The product allows for a 20% overpayment allowance each year
Mortgage lending exposure in any one property development is capped, where practicable, to 25%. Where this is residential Buy to Let or Shared Ownership, a maximum of 25% exposure is allowable in blocks of 4 flats or more. For blocks of 3 flats or less, we will only lend on one property.
Portfolio Landlords Not Accepted