Vida Homeloans

Mortgage Type

Buy To Let

Property Value (min)

Single residential units - £50,000 up to 70% LTV. Over 70% LTV, minimum valuation of £70,000 applies.
HMO - £100,000
MUB - £175,000 in London & South East
£125,000 in all other locations.
Ex Local authority flats/maisonettes min £80k outside London, £200k in Greater London up to 80% LTV.

Advance (min)

£100,000 - supersedes all minimum property values.

Advance (max)

£550,000 to 85% LTV
£750,000 to 80% LTV (Max LTV in Scotland)
£1,000,000 to 75% LTV on Ltd edition products
£1,500,00 to 70% LTV

Term (Max)

40 Years

Minimum Age

21 (Primary applicant), 18 for all other applicants if a direct family member. If First time buyer and first time landlord, the client must be 25 years old.

Maximum Age

85 at the end of the term as standard (not a company structure). 95 at the end of the term for company BTL

Family Cash Gift Deposit

Accepted from close relatives, ie parents, grandparent, sibling, step relatives, child, spouse etc

Family Gift of Equity Deposit

Considered when the property is being purchased from a close relative only - 5% required by the applicants Gifted Deposits 100% gifted deposits considered from the following family members: spouse/partner, parent, child, grandparent, sibling, step relatives, foster parent or legal guardian. Overseas Deposit Deposits from an overseas account can be considered on a case by case basis Builder deposit/incentive Acceptable up to 5% of the purchase price on new build properties Purchase at Undervalue Acceptable where purchasing from a close relative, or a long-term tenant buying from their landlord Inter Co Loans - unable to consider intercompany loans as a source of deposit

Income (min)

No minimum income

Restrictions

Applicants who do not currently own any property are acceptable and will be assessed for affordability on both a residential and BTL basis

No restriction on number of storeys in a block of flats

No requirement for a lift above 4th floor

Flats near to or above bars, pubs and petrol stations considered

Multi-Unit Blocks (MUB) now available up to 6 units

Landlords considered with no experience when purchasing HMO or MUB

Maximum 20 properties up to a maximum portfolio of £4 million exposure with Vida per borrower. No restrictions on portfolio size outside of Vida, but overall portfolio average of 80% LTV, regardless of lender.

Flats situated above commercial premises: Max 75% LTV
Flats situated above restaurants/ takeaways/ launderettes: Max 60% LTV

Ltd Co (including trading companies), and SPVs acceptable across standard range with no extra rate loadings or fees. Ltd Company trading under a different SIC code, 2 years trading, 1 years accounts & SA302 required.
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Directors Loans accepted for deposit purposes – Vida will require a fixed and floating charge for Trading Limited Companies. Vida can also consider using retained profit for deposit purposes.

HMO: -
Applicants with no previous experience can be considered for HMOs and MUBs.
HMOs can have up to 6 bedrooms and a minimum valuation of £100,000.
MUBs can have up to 6 self-contained units on a single freehold title - flats only.

Multi Units: - Up to 5 self-contained units on a single freehold. Minimum value £175,000 for the freehold block in London & South East, £125,000 in all other regions.
From 130% rental cover.

Corporate lets: It is acceptable for a customer to create a corporate let providing they are in the name of our customer and include the ability to terminate the lease within the lease period.

Vida will accept SPV applications where a Bounce Back loan (BBL) or a Coronavirus Business Interruption Loan (CBIL) remains active - subject to underwriter discretion

Let to Buy (Turning Residential into Buy to Let)

Accepted, providing customer confirms that the property is being let out for investment purposes. Vida can lend on both the BTL and/or residential loan

If BTL is with another lender, we require a copy of the offer. Vida requires a simultaneous completion of a new residential for a Let to Buy. If this is not the case then the applicant is required to be out of the property with consent to let from their current lender.

DWP Tenants

DSS Tenants are considered if in receipt of a top up on the rent payable.

Ex-Local Authority Properties

Houses are considered up to scheme and LTV limits, and flats/maisonettes up to max 80%, subject to conditions. Flats/Maisonettes, minimum property value of £80,000 (£200,00 in Greater London).

Flats: High rise flats must have a lift if over 4 floors (ground floor + 3 floors). High quality flats over 10 storeys (maximum 20) can be referred for
underwriter consideration based on valuer’s comments on mortgageability & saleability.

No lift is required if the flat is on one of the first three floors above ground, irrespective
of the number of floors in the block.

Minimum years remaining on leasehold property

C&I loans minimum of 40 years lease remaining. I/O 70 years remaining

Minimum Ownership

6 months - If less than 6 months, will allow remortgaging from bridging finance provided by other lenders including the roll up of interest and lender fees. Capital raising is not accepted.

Bridging finance can be remortgaged within 6 months with capital raising considered where clear evidence of works carried out to improve the value of the property

Permanent rights to reside and remain

Yes (unless Ex-Pat). Must have 2 years residing the UK also.

All applicants must provide 3 years address history. The latest year must show continuous residency in the UK.

However, Only 1-years’ UK residency required before application.

If married at least one applicant must have permanent rights to reside or indefinite leave to remain, both would need to be applicants on the mortgage but affordability must fit on only the applicant with permanent rights to reside or indefinite leave to remain.

All Non EEA Nationals must be resident in the UK for the last 2 years and have permanent right to reside in the UK.

Extended list of acceptable visas

Foreign Nationals will need to provide evidence of their right to reside in the UK. Those with a permanent right to reside, EU/EEA/Swiss with settled status or indefinite leave to remain can borrow up to scheme limits.
Where residency status is evidenced by one of the following, borrowing is available up to 75% LTV with at least 5% of the deposit coming from either savings or inheritance:

EU/EEA/Swiss and Foreign Nationals

EU/EEA/Swiss with pre-settled status
Family visa
Tier 1 (Entrepreneur Visa only)
Tier 2 (Skilled Worker)
UK Ancestry Visa
British National (Overseas) Visa
Senior or Specialist Worker Visa
Health and Care Worker Visa

Ex-Patriates

Yes – British Citizens living or working in FATF member countries or confederations

British Citizens living or working in over 180 FATF member countries or Confederations, excluding high risk countries

Minimum property value of £150,000 for non EEA landlords

Spouses who are non British Citizens can be party to the mortgage

• Up to 75% LTV applies with the exception of Australia (70% LTV)
• Non EEA landlords require a minimum property value of £150,000
• Spouses who are non British Citizens can be party to the mortgage
• Applications considered for SPV’s registered in England, Wales or Scotland where one or more directors or shareholders is resident overseas as an expat

Must currently own a UK property and have at least 3 active credit records

First time landlords acceptable but must own a UK property
First Time Landlords - Evidence of a UK tax liability within the last 5 years required
(must own a UK property) Maximum loan £500,000

Existing Landlords - Need to own a BTL property in the UK and receive rental income
Maximum loan £1,000,000

Mortgage payments to be made by direct debit from a UK bank account

New Builds

Vida define a new build property as one that has never been occupied.
Properties in the course of construction and Off Plan will be considered on a ‘finished basis’ valuation with full retention of monies until the property is ready for completion.
Offers are valid for 6 months which can be extended for up to a further 6 months on the same product subject to credit search, affordability and re-valuation (£96).
Monies will be released following provision of a completion certificate.

Credit Score

Customer should achieve a low cutoff score to be considered for the range. Vida then select a tier based on exact credit profile, not score, for transparency.

Rental Calculation

2 year fixed: Product rate + 2%, 5.5% minimum.

2 year fixed £ for £ re mortgage: Product rate, 5% minimum.

5 year fixed Product rate.

140% Higher Rate Taxpayer

125% UK Basic Rate

125% UK Ltd Co’s/SPV

HMO/MUB – 130%, including Ltd Company HMO, 140% for higher rate tax payers

Historic CCJ’s & Defaults

Vida 1, No registered CCJs or Default in last 48 months. No Unsatisfied CCJs
Vida 2, No registered CCJs or Default in the last 36 Months. No Unsatisfied CCJs
Vida 3, 1 Registered CCJ or Default in last 24 months (includng unsecured defaults) (0 in last 18 months of £250 or more). Max £5000 unsatisfied CCJs
Vida 4, 2 Registered CCJ's or Defaults in last 24 months (including unsecured defaults) (0 in last 6 months of £250 or more) Max £5000 unsatisfied CCJs

Missed Secured/Mortgage Payments: -

Vida 1 – 0 missed payments in the last 36 months
Vida 2 – 0 missed payments in the last 12 months, 1 in the last 24 months
Vida 3 – 0 missed payments in the last 12 months, 2 in the last 24 months
Vida 4 – 0 missed payments in the last 6 months, 2 in the last 24 months

Valuation Fees

Valuation fees paid direct to lender at the lender fee scales

Maximum number of applicants

4 applicants

Countries

Will lend in England, Wales and Scotland - currently lending in postcodes G, EH, PA (1 to 19 only),

DD, FK, KY, KA, AB (10 to 41, 51 to 55, 99) IV (1 to 32, 36 & 63), and ML.

Access

Access to Vida Homeloans is through a selective panel of packagers, one of which is 3mc

Missed mortgage payments

Vida 1 - 0 missed payments in last 36 months Vida 2 - 1 in last 24 months (0 missed payments in last 6 months) Vida 3 and 4 - 2 in last 24 months (0 missed payments in last 6 months)

Property Type / Commercial

Flats LTV's available up to scheme limits.

No restriction on number of storeys in a block of flats

No requirement for a lift above 4th floor

Flats near to or above bars, pubs and petrol stations considered

Multi-Unit Blocks (MUB) now available up to 6 units

Landlords considered with no experience when purchasing HMO or MUB

No lift required if the flat is on one of the first 3 floors above ground, irrespective of the number of floors in the block.
- Will not lend on properties above a public house
- Flat roofs considered on flats.

Flat roofs on flats are considered - Flat roofs on houses are based on valuers comments if greater than 25% of the roof area , and assessed on an individual basis on mortgageability & saleability.

High quality flats over 10 storeys (maximum 20) can be referred for underwriter consideration based on valuer’s comments on mortgageability & saleability

Flats above commercial Flats situated above commercial premises: Max 75% LTV
Commercial element of mixed-use properties now allowed up to 40%
Premises Flats situated above restaurants/ takeaways/ launderettes: Max 60% LTV
Properties adjacent to public houses and petrol stations now considered
Properties with Possessory Titles now considered

New Build Accepted up to scheme limits. Vida Homeloans defines a new build property as a property that has never been occupied and must have suitable warranty

Max LTV Up to scheme limits except where restrictions apply

Solar Panels Consent to roof space leases for the installation of photo-voltaic (solar) panels, can be agreed subject to the joint CML and BSA published minimum requirements being met

Limited Companies & Partnerships
Minimum & Maximum Number Minimum 1
of Shareholders/ Directors Maximum 4

Business Classification • 68100 Buying and selling of own real estate
SIC Codes) for SPV's only

• 68209 Other letting and operating of ow n or leased real estate
• 68320 Management of real estate on a free or contract basis
• 68201 Renting and operating of Housing Association real estate

Company Registration England & Wales Only
Trading Companies Acceptable. If existing Limited Company trading under a different SIC code, 1 year’s Accounts & SA302 required

SPV applications where a Bounce Back loan (BBL) or a Coronavirus Business Interruption Loan (CBIL) remains active are accepted - subject to underwriting.

Location

Will lend in England, Scotland and Wales

Type of Credit Search conducted at AIP stage

Soft foot print

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– Average 80% LTV for the overall portfolio
– No minimum rental stress requirements – Rental stressing will only be applied to mortgages held by Vida

Portfolio Landlord Criteria

– Up to 20 properties with Vida to an aggregate borrowing of £4m
– No maximum number of properties in total with Vida, other lenders & unencumbered units

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – All cases
– Cashflow Statement – Case by case
– Asset & Liability Statement – Case by case
* Lender will accept client versions so long as covers the lenders minimum requirements