United Trust Bank

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

Houses Minimum value £100,000 with maximum value £5M
Flats Minimum value £125,000.

Advance (min)

£50,000

Advance (max)

£500,000 up to 80% LTV Standard and Specialist
£1,000,000 up to 75% LTV - Non standard also.

Total borrowing of up to £5M per individual with a 20 loans maximum.

Term (Max)

25 years

Minimum Age

21 years for all applicants

Maximum Age

At least one applicant must be under 85 years old at the end of the term.

Family Cash Gift Deposit

Gifted deposits are considered from close/blood relatives: Parents, Child, Grandparents, Brother, Sister, Step Parent, Spouse. OVERSEAS DEPOSITS These can be considered by referral (FATF and EEA only) . CONCESSIONARY PURCHASE Considered if purchasing from a close relative (as above).

Family Gift of Equity Deposit

Gifted deposits considered from close/blood relatives: Parents, Child, Grandparents, Brother, Sister, Step Parent, Spouse. OVERSEAS DEPOSITS These can be considered by referral (FATF and EEA only) . CONCESSIONARY PURCHASE Considered if purchasing from a close relative (as above).

Income (min)

There is no minimum income requirement. However, the primary applicant must be able to evidence income via a latest - payslip, SA302, signed accounts, pension statement.

Alternatively an employment reference or accountants certificate can be obtained.

Spousal maintenance accepted if by court order.

Restrictions

Ltd Co's that have been formed for holding residential Buy to Let properties as assets. Trading companies are not permitted

DIRECTORS OR SHAREHOLDERS
Up to a maximum of 4 individuals. The application must include all directors and sufficient shareholders who own a combined total of at least 80% of the company.

PERSONAL GUARANTEES
All directors and shareholders are required to provide joint and several guarantees and take Independent Legal Advice.

CONNECTED APPLICANT
Where the property is registered in the name of one of the applicants, at least one of the owners must be a shareholder of the Ltd Co application.

ACCEPTABLE SIC CODES
68100, 68209, 68320, 68201.

High Rise Flats
Over Commercial premises
HMO's
Multi-Unit Freehold Blocks
Holiday lets

Consumer BTL: -
Do not allow Consumer BTL. If the client is already a landlord with other rental property this is acceptable.
Considered if the subject property is the client’s only BTL

FLATS
Various types of flats up to 30 floors (Where the security is on the 4th floor or above the block needs to have a lift).
Studios at least 30 Sq.M in size.
LEASE TERM - Minimum term 60 years left on the lease on completion.

EXPOSURE LIMITS - Maximum of 25% exposure of a block of flats.

MUB
APPLICANTS At least 1 applicant must have 1 years letting experience.
MINIMUM VALUATION £150,000.
NUMBER OF UNITS Six self contained units with their own utilities on specialist and ten on non standard products

HMO
APPLICANTS At least 1 applicant must have 1 years letting experience.
MINIMUM VALUATION £150,000.
NUMBER OF LETTABLE ROOMS Six on specialist and ten on non standard products.
LICENCE REQUIREMENTS Licence would be needed if required by the local authority. This will be confirmed by the solicitor.

NEW BUILD
DEFINITION Will only lend on new properties which are built and ready for occupation.
WARRANTY A new build warranty should be in place confirmed by the solicitor

MORTGAGE REPAYMENT
Capital repayment can be applied for with the same ICR as interest only mortgages.

The actual mortgage payment must be covered by the assessed rental income.

An amount of 10% of the outstanding balance of the mortgage can be repaid as a lump sum in any year without penalty.

Let to Buy (Turning Residential into Buy to Let)

No

DWP Tenants

Refer

Student Lets

No

Ex-Local Authority Properties

Yes, accepted.

Minimum years remaining on leasehold property

Minimum term 60 years left on the lease on completion.

Minimum Ownership

Property must have been owned for at least 3 months and must be registered in the borrower's name at Land Registry

Permanent rights to reside and remain

Yes, required.

Ex-Patriates

No

New Builds

Yes.

Purchases allowed off-plan, subject to re-inspection before completion.
Max 5% new build incentives, including builders deposit.
Evidence of an appropriate new build warranty, or certificate.

Credit Score

No, but do credit check

Rental Calculation

Confirmed by the valuer or current rent if lower.

Only exception is holiday lets where the rental income will be based on proven annual income or confirmed by a reputable letting agency averaging low/medium/high season for the year.

See below for rental calculations: –

For 2 year fixed rates the initial pay rate +2 or 5.5%

For 5 year fixed rates the initial pay rate.

125% Basic Income Tax Rate

140% Higher Income Tax Rate 140%

130% Combined Basic and Higher Income Tax Rate

125% Ltd Companies

 

 

Historic CCJ’s & Defaults

ALLOWABLE ADVERSE CREDIT

UTB Status 0 criteria: Active unsecured credit – All accounts currently up to date (mail order and communications ignored).

CCJs and Defaults – None in the last 2 years with a maximum of 5 totalling £5,000 whether satisfied or not (less than £300, mail order and communications ignored).

Valuation Fees

Valuation fees paid directly to the lender at the lenders valuation fee scale.

Maximum number of applicants

4

Countries

Will lend in England, Scotland (mainland) and Wales.

Access

Access to United Trust Bank is via mortgage packagers currently, one of which is 3mc.

Regulated BTLs

Consumer BTL: - Do not allow Consumer BTL. If the client is already a landlord with other rental property this is acceptable. Considered if the subject property is the client’s only BTL If regulated, please refer.

Missed mortgage payments

Mortgages/Secured Loans – No missed payments in the last 12 months & nil outstanding.

Property Type / Commercial

Any applicant, either individually or in a Ltd. Company (SPV), owning other BTL properties.

Ltd Co's that have been formed for holding residential Buy to Let properties as assets. Trading companies are not permitted
DIRECTORS OR SHAREHOLDERS
Up to a maximum of 4 individuals. The application must include all directors and sufficient shareholders who own a combined total of at least 80% of the company.
PERSONAL GUARANTEES
All directors and shareholders are required to provide joint and several guarantees and take Independent Legal Advice.
CONNECTED APPLICANT
Where the property is registered in the name of one of the applicants, at least one of the owners must be a shareholder of the Ltd Co application.

ACCEPTABLE SIC CODES
68100, 68209, 68320, 68201.

High Rise Flats
Over Commercial premises
HMO's
Multi-Unit Freehold Blocks
Holiday lets

Consumer BTL: -
Do not allow Consumer BTL. If the client is already a landlord with other rental property this is acceptable.
Considered if the subject property is the client’s only BTL

FLATS
Various types of flats up to 30 floors (Where the security is on the 4th floor or above the block needs to have a lift).
Studios at least 30 Sq.M in size.
LEASE TERM - Minimum term 60 years left on the lease on completion.

EXPOSURE LIMITS - Maximum of 25% exposure of a block of flats.

MUB
APPLICANTS At least 1 applicant must have 1 years letting experience.
MINIMUM VALUATION £150,000.
NUMBER OF UNITS Six self contained units with their own utilities on specialist and ten on non standard products

HMO
APPLICANTS At least 1 applicant must have 1 years letting experience.
MINIMUM VALUATION £150,000.
NUMBER OF LETTABLE ROOMS Six on specialist and ten on non standard products.
LICENCE REQUIREMENTS Licence would be needed if required by the local authority. This will be confirmed by the solicitor.

NEW BUILD
DEFINITION Will only lend on new properties which are built and ready for occupation.
WARRANTY A new build warranty should be in place confirmed by the solicitor

Location

Will lend in England, Scotland (mainland) and Wales.

Type of Credit Search conducted at AIP stage

Soft

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Total borrowing of up to £5M per individual with a 20 loans maximum.

– The portfolio ICR must be at least 125% at a mortgage rate of 5%. UTB may request further assurance over the mortgage serviceability for portfolios that are highly geared.

Portfolio Landlord Criteria

– 20 loans maximum, £5,000,000 exposure with the Bank.

Additional Document Requirements

– Portfolio Schedule – All cases

– Asset & Liability Statement – All cases (within the lender application form)

– Business Plan – All cases (within lender application form)

– Cashflow Statement – Not required