Hampshire Trust Bank

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

HTB do not have a specific minimum value, however, the loan has to be £100,000.

Advance (min)

£100,000

Advance (max)

£25,000,0000.

Term (Max)

30 years

Family Cash Gift Deposit

Accepted

Family Gift of Equity Deposit

Accepted

Income (min)

No minimum income
First time buyer, first time landlord - minimum income has to be £65,000 per application.

Restrictions

First time buyer, first time landlord - minimum income has to be £65,000 per application.
First time landlords - Can buy HMO`s MUFB`s holiday lets and multiple properties subject to an affordability assessment.

'Restricted' Holiday lets:
• 65% LTV
• Priced 1% over our semi commercial product
• ICR increased to 140% from 125%
• Booking agent to confirm high medium and low rental incomes.
• Property needs to have C3 use but restricted to holiday letting only.

DWP Tenants

Can consider Serco Mears and Clearsprings

Ex-Local Authority Properties

Yes, flats and houses

Minimum years remaining on leasehold property

50 years at the end of the mortgage

Minimum Ownership

None

Permanent rights to reside and remain

Not required

Ex-Patriates

Yes, also, Foreign Nationals based in over 110 countries acceptable

New Builds

Yes, considered

Credit Score

Yes – however only accounts for a small part of the overall decision

Rental Calculation

Limited company: BTL 125% HMO over 6 bedrooms – 140%

Personal name: BTL 140% HMO over 6 bedrooms – 155%

5 year fixed – stressed at pay rate

2 year fixed – stressed at pay rate + 2%

Note: £4£ remortgages: – (As of 19/08/2024)

• Consistent ICR Calculations: Uniform ICR (Interest Coverage Ratio) calculations for both 2-year and 5-year fixed terms, offering more leverage.
• Inclusion of Fees: We also allow fees to be added to the loan, ensuring the existing term lender is fully redeemed without additional upfront costs

Historic CCJ’s & Defaults

Assessed on a case by case basis

Valuation Fees

Paid direct to lender at the lender valuation fee scales

Maximum number of applicants

10 maximum

Countries

England & Wales

Regulated BTLs

Not considered

Property Type / Commercial

Residential and Semi Commercial

The value of the residential element can be up to 50% of the total valuation and should have its own separate access - This should be the value of the commercial element.


• Large and small portfolios
• Holiday lets
• HMOs
• Development exits
• Sitting tenants
• New build flats

Purpose Built Student Accommodation - Or PBSA for short.

Weather it’s a newly built development or a well-established asset, we are now in the market for PBSA. Refer these to me directly to vet, and ill liaise with head of underwriting to obtain a decision.

'Restricted' Holiday Lets:
• 65% LTV
• Priced 1% over semi commercial product
• ICR increased to 140% from 125%
• Booking agent to confirm high medium and low rental incomes.
• Property needs to have C3 use but restricted to holiday letting only.

A general list of questions such as:

• Location
• University Ranking
• Property Quality
• Lease terms – If the property is leased then the key terms need to be understood including how any break clauses work.
• Occupancy Levels – What are the historic occupancy levels
• Competition – What does the PBSA pipeline for the University / City imply for future occupancy levels / rental expectations?
• Overseas Students – What proportion at University / property?

HTB also consider Vulnerable Tenants:

The following types of properties and tenancies providing the property is let on a corporate agreement to a local authority, Housing Association, or strong corporate / charity and, where applicable, an experienced and reputable CQA-registered care provider is in place:

• Housing Association, or strong corporate / charity
• Properties where 24 hour or live-in care is provided
• Properties providing emergency housing accommodation.
• Properties where housing is provided for rehabilitation or social transitional purposes

For clarity direct lets to vulnerable tenants are outside of appetite. Care Homes are also outside of appetite.

Note that where the residential aspect is less than 50%, we may need to reprice the application, which could impact serviceability.

HTB accept cases where properties are let to a third party for emergency housing, rehabilitation or social transitional purposes, provided there is a credible professional operator providing appropriate management.

The threshold above which a mortgage debenture is required is £2m.

Type of Credit Search conducted at AIP stage

Hard credit search

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements (Example)

– No maximum LTV for the overall portfolio

Portfolio Landlord Criteria (Example)
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – All cases
– Asset & Liability Statement – All cases
– Cashflow Statement – All cases
* Lender will accept client versions for all documents
NB – Portfolio assessment will be valid for 12 months to reduce requirements on subsequent applications providing there are no material changes