Family Building Society
Mortgage TypeBuy To Let
Property Value (min)
Minimum property value £120,000 (we have a little flexibility between £100-£120k), Ex Pat BTL tends to be min value £165,000 as minimum loan is £100,000 but again a little bit of flexibility)
£45,000 (A small amount of flexibility can be applied to the amount on referral sometimes) - including Ex - Pat
Check all LTV's
80% LTV to £750,000 loan amount
75% LTV to £1mill loan amount
70% LTV to £1.5mill loan amount
65% LTV to £2 million loan amount
60% LTV to £1.5 million loan amount
50% LTV to £3 million loan amount and 50% LTV above this
Term (Max)40 years
Minimum Age18 years old
Maximum AgeMax Age AT Application - C & I 90 and Interest Only 89. (5 Year Term max at these ages)
Family Cash Gift DepositYes, considered
Family Gift of Equity DepositMax Age AT Application - C & I 90 and Interest Only 89. (5 Year Term max at these ages)
Income (min)No income assessment carried out. Applicants should be able to cover a minimum of 3-month rental voids and confirm this on the application form.
Where a client does not have an income then proof may be sought of a reasonable amount of savings in the background. Rental income is a form of income though.
RestrictionsClients should ideally have a current UK mortgage (exceptions can be made for good quality applicants/applications)
No limit on the size of their portfolio elsewhere.
No Ex Local Authority Flats (sometimes considered within M25)
Standard BTL's only, no HMO's, Students, DSS etc)
No Studio flat and/or flat with a total floor area of less than 30sq meters
No agricultural restrictions.
Ltd Company criteria: -
The Society can also consider lending on Buy to Let properties where the borrower is a Limited Company. In such cases the following will apply:
The product fee will be 1.25% of the loan amount.
The company must be a Special Purpose Vehicle (SPV) registered within England and Wales.
Maximum 65% loan to value (LTV).
Minimum loan size £100,000.
Full personal guarantees will normally be required with joint and several liability from all Shareholders and Directors. All guarantors will require independent legal advice (in the absence of personal guarantees from all Directors and Shareholders, the maximum LTV will be reduced by 10%).
The SPV should be new to avoid the need for due diligence on previous company activities.
For the period of the mortgage the SPV will be required not to undertake any other business activity nor to take on any other debt.
All Directors are “natural persons” i.e. no shareholding by other companies.
Both the Limited Company and the individual Directors and/or Shareholders must have a clean credit history with no:
Liquidations (compulsory and creditor), other than orderly winding-up of solvent companies.
Administration orders (Corporate Voluntary Arrangements – CVA – are treated the same as IVAs).
Winding-up orders (all receiverships).
Business CCJs are treated the same as personal CCJs.
SPV must be Standard Industry Classification (SIC) Codes ‘68100 Buying and selling of own real estate’ or ‘68209 Other letting and operating of own or leased real estate’.
The Society may appoint and be separately represented by a conveyancer with suitable expertise in this market.
Let to Buy (Turning Residential into Buy to Let)Yes but only at 145% of Payrate on a 5 Year Fixed or 5.50 if not. 130% rule does not apply.
Ex-Local Authority PropertiesLATS - No (inside M25 maybe considered by exception)
Houses - Yes
Accepted up to product maximum LTV, subject to the following conditions:
Standard Construction Only
No Deck Access
Minimum years remaining on leasehold property50 plus mortgage term
Minimum Ownership6 months as a rule however if bought with bridging finance these can be considered sooner subject to a suitable explanation (e.g. Unable to mortgage at the time of purchase).
Permanent rights to reside and remainYes, required
Ex-PatriatesYes, considered. Specific product range available
New BuildsNew Build houses accepted
Flats - No
New build is defined as built in the last 12 months, or has not previously been occupied.
Individual or Ltd Co 145% at 5.50 or variable rate if higher when the case is a purchase or capital raise remortgage. £4£
Remortgages are 130% at 5.50% or variable rate if higher.
Cases on a 5 year Fixed can be assessed at Pay Rate x 145%/130% as before
Historic CCJ’s & DefaultsNo defaults in the last 3 years and any over 3 years must have been satisfied 3 years ago
CCJ's - will consider 1 satisfied under £500 in the last 3 years, all other CCJ's must have been satisfied over 3 years ago
1 communication supplier issue may be considered if under £500 and satisfying subject to a suitable explanation
Missed mortgage payments, 1 in last 12 months but none in last 6 months with a suitable explanation.
Valuation FeesPaid direct to the lender at the lender fee scales. Free Valuations on Residential Purchase and Remortgage cases up to £500,000 (Discount of £360 above that value)
Maximum number of applicants4.
CountriesEngland and Wales only
AccessAccess to Family BS is available via selected packagers networks.
Missed mortgage payments1 in last 12 months but 0 in last 6 months, 2 in last 36 months
Property Type / CommercialSingle units only.
Multi Unit Freehold (max 3 units in the freehold) – Client must not live in one part – Will lend on the Freehold value.
LocationWill lend in England and Wales.
Right to Buy (RTB)Yes
Debt Management PlanNo
Help To Buy (Shared Equity)No
Ex-BankruptsMust have been discharged for 3 full years - Easch case will be individually underwritten so should be referred before application
IVAsMust have been discharged for 3 full years - Easch case will be individually underwritten so should be referred before application
RepossessionsNo but can refer if over 10 years ago
Payday LoansNone in the last 3 years
Repayment TypesCapital and repayment. Interest Only to 80% LTV - No min Income or Equity. The remaining equity should be sufficent to be able to downsize within a 5-10 mile radius. Other repayment vehicles can be used alternatively or to top up. These can include: BTL property equity surplus, Pension Pots (not being used as income on the application), Equities, Lump Sum Investments, Endownment Policy Part & Part (If loan is 50%+ on Repayment than the C & I term option can be used for the whole of the loan)
Lenders completion feeCan be borrowed and deducted from the advance subject to max LTV
EmploymentMinimum 3 months
Employed in the same line of work with 12 months continuous.
Self Employed1 years figures/ SA302's/ Accounts is accepted - however, they must meet the below: -
2 years is normally required, although an applicant with 1 year’s accounting information can be considered if the applicant:
Where possible we work off the latest years figures but reserve the right to use a 2 year average
- Has a track record in the trade; or is
- Able to demonstrate guaranteed income within the next accounting period; or
Moved purely from ST to Ltd Co same sole Director
Contract Workers - Min Contract £75,000 - Can then work of Contract income 46 weeks x Day rate
Portfolio Landlords Accepted
Background Portfolio Requirements
– Maximum 75% LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5% across the portfolio with at least 100% coverage for each mortgaged property
Portfolio Landlord Criteria
– ** to an aggregate borrowing of £3m
– No limit on the size of the existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – Not required
– Cashflow Statement – Not required
– Asset & Liability Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements