Moda Mortgages

Mortgage Type

Buy To Let

Property Value (min)

Outside London:
Standard properties (Houses/Flats/Maisonettes): £75,000
HMO properties: £100,000
MUFB properties: £50,000 per unit

London:
Standard properties (Houses/Flats/Maisonettes): £150,000
HMO properties: £250,000
MUFB properties: £150,000 per unit

Advance (min)

£25,000

Advance (max)

£2,000,000

Maximum LTV (based on net loan amount)
• Loans between £25,000 and £1m: Maximum 75%
• Loans between £1m and £2m: Maximum 70%
Individual products may have different restrictions, see our product guide

Term (Max)

35 years

Minimum Age

21. 18 is acceptable where the principal applicant is aged 21+.

Maximum Age

85 at the end of the mortgage term

Family Cash Gift Deposit

Yes, cash gift from a family member. Subject to underwriting,

Family Gift of Equity Deposit

No

Income (min)

Minimum earned income
• Where all applicants are first-time buyers, at least one applicant must have a minimum income of £30,000

• No minimum income requirements on loans under £1m, but applicants will need to be able to cover rental voids should they arise

• For loans over £1m, a minimum income of £100,000 is required from at least one applicant

• Income can be from multiple sources associated with the individual; proof of income must be provided

Will not accept aggregated income of £100,000 across multiple applicants


EMPLOYED APPLICANTS:
Employed
• PAYE applicants must have been in their current role for a minimum of three months and have 12 months of continuous employment
• Applicants on a fixed-term contract basis are acceptable, provided they’ve been in continuous employment
• Zero hour contracts are only permitted when the secondary applicant (i.e. not the main income earner) is employed on this basis
• Where an applicant has a shareholding of 25% or more or is responsible for the overall payment of their tax and national insurance, they’ll
be classed as self-employed
• Casual or seasonal employment is not acceptable
• Company directors who own less than 25% of the company shares are treated as employed

SELF EMPLOYED:
Self-employed
• Applicants must have been trading for a minimum of 12 months
• Where a company director owns more than 25% of the company shares, they must be treated as self-employed
• Income should be referenced from the latest year

Restrictions

First Time buyers: -
• First-time buyers are individuals who’ve not owned a UK property within the last 18 months.
• Joint applications will be treated as a first-time buyer case where both applicants are first-time buyers. If either applicant is an existing landlord then the application will be treated as standard.
• First-time buyer applications will require a minimum income of £30,000 from at least one applicant

Limited Companies:
Special purpose vehicles (SPVs) are acceptable where the principal activity must be for buying and holding residential investment property under SIC codes 68100, 68209 and 68320
Guarantees (personal) are required.

Repayment Types:
• Interest only – details of the repayment strategy must be provided
• Capital and interest
If top slicing is required, the application must be interest only.

Let to Buy (Turning Residential into Buy to Let)

No

DWP Tenants

No: Further info below: Tenancy agreements for tenants in the following categories are not acceptable: • Asylum seekers • Persons with diplomatic immunity • Employees of the applicant

Ex-Local Authority Properties

Houses: Yes
Flats: Yes

Ex-local authority flats/maisonettes accepted where the block is predominantly owner occupied.

HMO: Where applicable, an application for any HMO licence required by the local authority must have been made before completion

Minimum years remaining on leasehold property

Leasehold acceptable subject to there being a minimum of 50 years unexpired on the lease at the end of the mortgage term. Extension to leases can be considered subject to the extension being legally completed prior to completion – evidence of this must be provided Flying freeholds are acceptable provided the percentage does not exceed 15% of the total area

Minimum Ownership

6 months

Permanent rights to reside and remain

Yes, required.

In all cases, we require two years of UK residential address history
EEA and Swiss Nationals EU citizens are acceptable, providing they have a two-year UK residential history and must provide valid evidence that settled or pre-settled status has been granted under the EU Settlement Scheme.

A UK Government Home Office letter confirming settlement status cannot be used as evidence

Non-EEA nationals Must have been resident in the UK for the last two years and have permanent rights to reside in the UK

Diplomatic immunity Is not accepted if diplomatic immunity applies to immunity from UK law

Ex-Patriates

No

New Builds

A new build property is defined as a property constructed or converted within the last 12 months, and or has not been previously occupied

• New builds/conversions/converted properties may be considered

• For new builds which have not been previously occupied, the conveyancer will be required to obtain a completed Disclosure of Incentives Form (DIF)

No new builds or conversions (defined as built/converted in the last 12 months and/or has not been previously occupied)

For new build properties and those less than 10 years old, a building warranty from one of the providers shown to the right should be in place:

Advantage HCI: - International Construction Warranties (ICW)
Aedis Warranties: - LABC
Ark Residential New Build Warranty: -NHBC Guarantee
BOPAS: - One Guarantee
Build Assure: - Premier Guarantee Scheme
Building Life Plans: - Professional Consultants Certificate (previously Architect’s Certificate)
Buildzone: - Protek
Checkmate (Castle 10): - The Q Policy
Global Home Warranties: - Zurich Municipal ‘New Build’

Please note that we’re unable to accept retrospective

Credit Score

Soft search for DIP - do not score on full app.

Rental Calculation

Personal ownership – (Note: Higher and additional rate 140%)

Minimum portfolio
ICR% @ 5% 140%

Maximum portfolio
LTVs 80%

Limited company
Minimum portfolio
ICR% @ 5% 125%
Maximum portfolio
LTVs 80%

Historic CCJ’s & Defaults

Bankruptcy: Prime and non-Prime - NO

Individual Voluntary Arrangement (IVA) Prime and non-Prime - NO

Active Debt Management Plan: Prime and non-Prime - NO
Repossession/secured default: Prime and non-Prime - NO

County Court Judgment (CCJ) Prime: Nil 0 in 24 months. NON-PRIME: 1 in 36 months

Defaults: Prime: Nil 0 in 12 months. Non-Prime: 2 in 24 months

Missed mortgage/secured loan repayments: Prime: - Nil. Non-Prime: - 0 in 12 months, worst status of 1 in 36 months

Missed unsecured loans/products: - Worst status of 1 in 12 months, 2 in 36 months
Worst status of 1 in 12 months,
3 in 36 months
Active payment arrangements Nil Nil

Valuation Fees

Paid direct to lender directly, at the lender valuation fee scales.

Maximum number of applicants

2 for individuals, 4 for limited company (Ltd co)

Countries

England and Wales.

Access

Via 3mc as your packager

Property Type / Commercial

Acceptable property types
• Standard houses (single residential dwelling unit) – detached, semidetached, terraced, cottage and bungalow
• Flats/maisonettes/apartments –
• Must be self-contained with private facilities and access to the highway
• Must not contain more than 20 storeys in the block
• Ex-local authority flats/maisonettes accepted where the block is predominantly owner occupied
• Flats above or near commercial properties can be considered if they’re good quality
• Minimum floor area of 30m2

Basement flats –
• Only accepted within London
• Minimum floor area of 30m2
• Studio flats –
• Maximum 70% LTV
• Minimum floor area of 30m2


Houses of Multiple Occupation (HMO) MAX 6 BED – defined as a property where there are a minimum of three tenants in occupation who form more than one household and share toilet, bathroom or kitchen facilities

• Multi-unit freehold blocks (MUFB) – defined as a single structure that contain separate units or flats that are not subject to individual leases and therefore the property remains on one freehold title (minimum floor areas of 30m2 per individual unit)
• Individual units must be completely self-contained and meet prevailing property criteria including minimum valuation figures and rental calculations

Location

England and Wales only.
Excluding Channel islands, Isle of Man and Northern Ireland.

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio or properties (external to ModaMortgages), 20 loans WITH ModaMortgages

Portfolio Landlord Criteria

– Maximum portfolio lending held with ModaMortgages is £5,000,000.
– No limit on the size of existing portfolio with other lenders

-Background Portfolio should stress at a minimum of 125% on the higher of current mortgage payments or 5%

Additional Document Requirements

– Business Plan – All cases
– Asset & Liability Statement – All cases

* Lender will accept client versions so long as covers the lenders minimum requirements