Rely

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£75,000

Advance (min)

£50,000

Advance (max)

No maximum currently.

Term (Max)

35 years

Minimum Age

18 years old

Maximum Age

85 years old

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Yes

Income (min)

No minimum income

Restrictions

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Limited companies (SPV & Trading) & LLPs

Companies must be registered in the UK.
Each company must have a maximum of four directors/designated members, all of whom must be included on the application. Personal guarantees are required from all directors/designated members.
If it is identified that the company has any restrictions on the purchase, management and sale of investment property, the application cannot proceed.
A purchase by an individual from their own limited company or between two limited companies with the same owners / directors is acceptable only if the property is sold at full market value, and all relevant taxes are paid.
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Properties with Japanese knotweed designated as Class A or Class B. Or Class C if there isn’t a satisfactory management plan in place.

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Intercompany loans
Acceptable for limited company lending, subject to:

The majority shareholder to mirror across SPV and connected company;

Must be UK to UK company (no offshore companies);

Loan needs to be repayable, and a term agreed with documented loan agreement;

The term must not exceed that of the mortgage;

Rate of interest applied should be HMRC’s ordinary rate of interest;

Any monthly payment to be included in ICR calculation; and

Connected company not to have any interest or charge over the Bank’s security.
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Let to Buy (Turning Residential into Buy to Let)

DWP Tenants

Yes, considered

Student Lets

Yes

Ex-Local Authority Properties

Freehold

Houses and MUFBs only.

Leasehold

The unexpired term of the lease must be at least 50 years at the end of the mortgage term and subject to a satisfactory valuation.

Leasehold properties where the remaining lease term is less than 85 years will be accepted at a maximum 75% LTV.

Minimum years remaining on leasehold property

50 years

Minimum Ownership

Remortgages considered within six months.

Permanent rights to reside and remain

Yes, required.

A full three-year UK residential history is required for all applicants. All applicants must be resident in the UK at the time of completion.

UK Nationals

For the purposes of this Policy, British Forces Post Office (BFPO) addresses are considered to be UK.

Non-UK Nationals

In addition to residency requirements, applicant(s) must provide evidence of permanent rights to remain in the UK.

Ex-Patriates

New Builds

Remortgages considered within six months.

Offers valid for three months.

New build offers valid for six months.

New builds, newly converted properties and renovations:

New build properties are those that are less than two years old (from the date of practical completion) and/or have not been lived in.

Properties aged less than ten years, recently converted or occupied for the first time must benefit from one of the following:

Advantage HCI;

Ark Residential New Build Warranty;

BOPAS (Build Offsite Property Assurance Scheme);

Build Assure;

Buildzone;

Building Life Plan;

Checkmate (Castle 10);

Global Home Warranties;

Home Proof;

International Construction Warranties (ICW);

LABC;

N.H.B.C Guarantee;

One Guarantee;

Premier Guarantee Scheme;

Professional Consultants Certificate (previously an Architect’s Certificate);

Protek;

Q Policy.

Zurich Municipal “new build” (valid until 30/09/09).

For developments previously holding a CRL warranty, a retrospective warranty will be accepted from one of the above providers subject to a site survey having been undertaken by the new warranty provider at the time the retrospective warranty was underwritten.

In all other circumstances, warranties must exist upon completion of the property and cannot be applied retrospectively.

Credit Score

Yes, with Experian

Rental Calculation

Standard BTL – a single dwelling, HMO or student let with <=6 letting rooms, or <=6 flats in one block under one title.

Higher/additional rate taxpayer – 140%
Basic rate taxpayer / Ltd Co / LLP – 125%

Complex BTL – HMO or student let comprising >6 letting rooms, or >6 flats or more in one block under one loan, or multiple houses under one title.

Higher/additional rate taxpayer – 175%
Basic rate taxpayer / Ltd Co / LLP – 145%

Historic CCJ’s & Defaults

No adverse:

CCJs: Must be satisfied at time of application, 0 in 72 months where >=£300

Defaults: Must be settled at time of application 0 in 72 months

Secured missed payments: 0 in 36 months

Unsecured worst status: 0 in 6 months

Light adverse:

CCJs: Must be satisfied at time of application, 0 in 24 months where >=£300

Defaults: Must be settled at time of application 0 in 12 months, 1 in 24 months

Secured missed payments: 0 in 36 months

Unsecured worst status: 1 in 6 months

Light adverse+:

CCJs: Must be satisfied at time of application, 0 in 12 months, 1 in 24 months (Max £3000) where >=£300

Defaults: Must be settled at time of application 0 in 24 months

Secured missed payments: 0 in 12 months, 1 in 36 months

Unsecured worst status: 2 in 6 months

Valuation Fees

Paid directly to the lender using the lenders valuation fee scales

Maximum number of applicants

Countries

England and Wales

Access

Via 3mc as your Packager, and mortgage club if applicable.

Regulated BTLs

Missed mortgage payments

No adverse: Secured missed payments: 0 in 36 months Light adverse: Secured missed payments: 0 in 36 months Light adverse+: Secured missed payments: 0 in 12 months, 1 in 36 months

Property Type / Commercial

HMOs
House in Multiple Occupation (HMO) is permissible.

Holiday lets - yes, specialist range only/Interbay.

Generally, a HMO will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non-self-contained flats and some self-contained flats.

Any property meeting the criteria above is deemed to be a HMO for lending purposes regardless of tenancy agreements in place or the type of tenant.

HMO properties must have the appropriate planning permission in place as follows:

Up to 6 bedrooms – C4 planning (where required due to removal of permitted development rights, such as the implementation of an Article 4 Directive);

7 or more bedrooms – Sui Generis planning.

Where formal planning permission has not been granted as above, a Certificate of Lawful Use is also deemed as acceptable for both C4 and Sui Generis planning uses. Where there is no formal planning permission and no Certificate of Lawful Use, confirmation of continued lawful use as a HMO should be obtained from the acting Solicitor.
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Licencing

For remortgages, the solicitor must confirm sight of a copy of the Licence prior to release of funds or confirmation that a HMO licence application has been made.

For purchases, the following apply as applicable:

Where the property is currently licenced, the Group’s Solicitor is to confirm sight of the licence and that the licence is in the borrower[s] own name;

Where the property is not licenced, but the applicant holds a licence on an alternative property. The Group’s Solicitor is to confirm sight of the licence and undertaking from applicant to apply for a licence on the subject property within 60 days from completion;

For more information about HMOs, please visit www.gov.uk/private-renting/houses-in-multiple-occupation
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Multiple units on a single freehold

Blocks of flats on a single freehold

Acceptable subject to valuer confirmation that the individual units are saleable and mortgageable.

Total block/development exposure limits do not apply where lending on multiple units on a single freehold.

Valuations will be conducted as follows:

Blocks < 20 units - Minimum valuation applies to each unit.

Blocks >= 20 units – Valued on a block valuation basis.

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AVM and desktop valuations possible, with more options for complex and long form valuations.

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First-time landlords including HMOs
Lending is not acceptable if no applicant is an existing homeowner (residential owner occupied and/or buy to let).

Flats
It is acceptable to finance the following:

Self-contained flats/maisonettes/apartments with private facilities and direct access to the highway via common parts.

Blocks of flats where units are not self-contained or otherwise individually mortgageable on a block investment basis only.

Where the security is situated above a commercial premises and/or it is a New Build it can only proceed subject to no adverse comments from the valuer/conveyancer.

For blocks of flats, the following rules apply:

Must be readily saleable and mortgageable

Cannot be constructed of Large Panel Systems (LPS Blocks)

Individual Studio flats below 30 square meters gross internal area are not acceptable.

For Ex-Local authority flats, the following are unacceptable:

Properties within Right to Buy pre-emption period;

Flats where there isn’t an active and transactional market within the block/development.

Flying freehold
Flying freeholds can be considered provided the percentage thereof does not exceed 20% of the total floor area.

Unacceptable property types:

The following are unacceptable:

Properties designated defective under Part XVI Housing Act 1985 or Pre-Cast Reinforced Concrete (PRC) where the property and the properties either side have not been repaired under a scheme licensed by PRC Homes Ltd.

Properties with mundic concrete in designated as Class B or Class C.

Location

England and Wales.

Type of Credit Search conducted at AIP stage

Soft, but scores

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio or properties

Portfolio Landlord Criteria

– Maximum portfolio lending held with Rely Mortgages 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% and a maximum of 85% LTV

Additional Document Requirements

Business Plan – All cases
Cash flow summary – All cases
Asset & Liability Statement – All cases

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

Please note, the following:

The subject property and any other pipeline buy to let applications within the Group
For personal applications, all mortgaged buy to let properties owned by the applicants in their own names and as guarantors to limited company lending
For limited company applications, all mortgaged buy to let properties owned by the entity applying plus those held by the guarantors both in their personal name and as guarantors to existing Limited Company lending