£75,000 (includes HMO, MUF, Commercial, Semi-Commercial and Commercial Owner Occupier assets)
*****
Residential - Loan to value maximum 70%, based on the lower of purchase price or acceptable valuation.
Ex-Local Authority property £100,000
Studio flat 30sqm £100,000
Flat above/adjacent to Commercial £250,000 within M25 (£150,000 All other regions)
Shared House (single unit rental)
£75,000 Shared House (room-by-room rental)
£250,000 within M25 (£150,000 All other regions)
House of Multiple Occupancy £250,000 (£150,000 All other regions)
Multi-unit Freehold Block £150,000
- HMO /MUFB
£150,000 in LSE,
£100,000 outside LSE.
- Ex-local Authority
£150,000 in LSE,
£75,000 outside LSE.
- Properties above or adjacent to commercial
£100,000.
- Freehold property conversions
£150,000 in LSE, £100,000 outside LSE.
- Other restrictions may apply.
£120,000 HMOs & Multi Units
£75,000 for HMO in qualifying areas - BB, BD, CA, CW, DH, DL, FY (Excluding FY1-FY4), HD, HX, L, LA, M, NE, OL, PR, SK, TS, WA, WF, WN, YO.
£120,000 for postcodes not listed above .
Min. loan size £1,500,000 million
£150,000 for HMO
£250,000 for HMO in Greater London - £100,000 elsewhere.
Multi-Units -
Min Val for;
2 -10 units is £100,000
11 - 20 units is £150,000
HMO minimum property value now £100,000, or £250,000 in London postcode districts
Specialist Range £70,000
Exception is residential portfolios where min value is £50,000 for at least 2 properties.
For properties under £100,000 - see specific product range
£120,000 London & South East
£120,000 for HMO
£150,000 for properties above commercial premises
Flats Minimum value £125,000.
£70,000 minimum value above 70% LTV.
HMO - £100,000 MUB £175,000 in London & South East. £125,000 in all other locations.
Ex Local authority flats/maisonettes min £80,000 outside London, £200,000 in Greater London up to 80% LTV
£100,000 for HMO, MUFB's & Flats above commercial (60% LTV)
£50,000 for commercial
£500,000 for large loan range excluding fees
£150,000 for 3mc exclusive
This includes single units, HMO's & Multi units
£25,001 on Specialist products and ex -pat
£5,000,000 to 75% LTV on 1 unit. £25,000,000 to a single customer.
Loans above 70% are subject to additional internal Aldermore criteria.
Maximum aggregate exposure to a single customer £35,000,000. LTV restrictions will apply.
Commercial Owner occupiers to borrow up to £1m on an interest only basis, for up to 10 years.
Ex-Local Authority property £100,000
Studio flat £100,000
80% LTV available against ‘standard’ freehold and leasehold properties. Any construction type highlighted by our valuer as non-standard will be restricted to a maximum 75% LTV.
Non-standard property construction max LTV of 75%
Above/adjacent to commercial property max LTV of 75%
MUFB/HMO maximum LTV of 80%
Larger MUFB's - 75% Max LTV
The minimum property value of £150,000 for properties located within the M25, £100,000 elsewhere
At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
Maximum of 10 units in the block
All units must have separate services
Larger HMO's - 75% Max LTV
All types of HMO will be acceptable including licenced, C4 planning use, Sui Generis planning use, as well as properties requiring considerable alternation to sell as a family home
At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
Maximum of 10 bedrooms
No limit on the number of lettable rooms
Minimum property value of £150k for properties located within the M25, £100k elsewhere
Short term lets considered
Flat above/adjacent to Commercial £250,000 within M25 (£150,000 All other regions)
Shared House (single unit rental) £75,000
Shared House (room-by-room rental) £250,000 within M25 (£150,000 All other regions)
House of Multiple Occupancy £250,000 (£150,000 All other regions)
Multi-unit Freehold Block £150,000
60% to £1.5 million loan amount
50% to £3 million loan amount and 50% above this
£1,500,000 on loan for both individual units and HMO/MUB up to 65%
£1,500,000 up to 75% LTV.
£500,000 up to 80% LTV and 85% LTV.
£100,000 for low loan range (portfolio landlords only)
*****
For Foundation Homeloans to consider the applicant an experienced landlord and to be able to access Standard and HMO products they must have operated a BTL at any time within the last 6 months for no specified length of time.
£70% LTV for <7 bed HMO/MUFB
80% LTV Maximum on single units and HMO/MUFB's
Semi Commercial - 75% LTV Max
Commercial unit - 75% LTV Max
Exceptions and portfolios considered.
Properties over £2,000,000 now considered.
£3,000,000 up to 80% LTV - if higher then it goes via BDM referral
Max 80% LTV and £1.5m for 7-10 bedrooms/ units
Up to 80% LTV to £3m on 1-6 bedrooms/units
£1,500,000 up to 75% LTV - HMO/MUFB
£1,500,000 up to 75% LTV on Standard properties
Large HMO - Max loan £1,500,000 up to 75% LTV
£750,000 max loan on new build properties
Large Loan range: -
Min. loan size £1,500,000 million
Max. loan size £2,000,000 million
£500,000 up to 80% LTV
£1,000,000 up to 75% LTV
HMO - £500,000 up to 75% LTV
75% for HMO's 7 - 10 bedrooms
80% for HMO’s up to 6 bedrooms
MUFB up to 10 units - 75% LTV
£3 million - 75% LTV
Small HMO's and MUFB up to £3mill, and up to £1,500,000 million for Large HMOs and MUFBs.
Up to £5mill with a maximum of 25 properties aggregated.
£1,500,000 to 70% LTV
£1,000,000 to 75% LTV
£750,000 to 80% LTV both non-portfolio and portfolio landlords
£10,000,000 per customer max lending
Up to £750,000 available to 80% LTV
Up to £1 million available to 75% LTV
Up to £1.5million available to 70% LTV
Up to £2 million available to 65% LTV
Aggregated Exposure limit has increased from £3m to £4m.
£1,000,000 to 70% LTV
£750,000 to 75% LTV
HMO/Ltd Co: -
Maximum loan:
£1,000,000 to 70% LTV
£750,000 to 75% LTV
Specialist Range £1,000,000
Loans over £750,000 have specialist rates
Exceptions and portfolios considered.
£2,000,000 up to 70% LTV for HMO
£1,500,000 up to 75% LTV for ALL property types
£2,000,000 up to 70% if New Build Flat / Above Commercial
Aggregate lending limit to apply to any type of property
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.
£750,000 to 80% LTV
£1,000,000 to 75% LTV
£1,500,00 to 65% LTV
Max Loan Amount – £1,500,000 @ 70% LTV.
£1,000,000 @ 75% LTV
(£2,000,000 in total)
SPECIALIST
HMOs & MUFBs:
Max Loan Amount - £1,000,000 @ 75% LTV.
Max Loan Amount - £1,500,000 @ 70% LTV.
(£2,000,000 in total)
Specialist New Build & Flats Above Commercial products available up to 75% LTV, with Max Loan size of £750,000
NB – The maximum LTV for portfolios with aggregate loans of more than £2,000,000 is 75%. We will require proof of the source of deposits
20 years for commercial
Aldermore Commercial: -Semi commercial, commercial investments units plus owner occupied commercial units.
Available to trading Ltd Co. SPV’s and individuals for both Aldermore Mortgages and Aldermore Commercial.
Allow single name into a limited company name using a directors loan and must be at market value.
Non-standard construction
Wimpey No Fine and Laing Easiform, acceptability will be linked to valuers' assessment - so can consider.
No longer accept any buy to let property with an EPC rating of F or G
Buy to let properties must have an EPC of E or above or a registered exemption certificate
Freehold and long leasehold (min 70 years on expiry of loan) residential only. HMO’s will be considered for licence holding operators with appropriate experience.
Plus Lending to Trust’s, SIPP/SSAS
Allow single name into a limited company name using a directors loan and must be at market value
Must be UK registered
First charges on land and buildings, personal guarantees from business owners/directors required.
Standard Leasehold house/flat/maisonette
Ex-local authority house
Ex-local authority flat/maisonette
Studio flats more then 30sqm
Flat above/adjacent to Commercial subject to valuers comments
Larger MUFB's - 75% Max LTV
The minimum property value of £150,000 for properties located within the M25, £100,000 elsewhere
At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
Maximum of 10 units in the block
All units must have separate services
Larger HMO's - 75% Max LTV
All types of HMO will be acceptable including licenced, C4 planning use, Sui Generis planning use, as well as properties requiring considerable alternation to sell as a family home
At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
Maximum of 10 bedrooms
No limit on the number of lettable rooms
Minimum property value of £150k for properties located within the M25, £100k elsewhere
Will not consider properties where any of the following applies:
• Where they are regarded as unsuitable by the Valuer on the grounds of noise, smell or danger to Health and Safety.
• Where the Valuer advises that Anti-Social behaviour is possible due to the Commercial premises
• Where a property is above or adjacent to hot-food outlets, Public Houses, Night Clubs, Takeaways, Pet Shops, Workshops and Petrol Stations)
New Build house
New Build flat/maisonette
Shared House
House of Multiple Occupancy max 6 bedrooms
• Development exposure limits in any block increased to:
o Blocks of up to 6 units: Maximum of 6 units per block
o Blocks of 7 to 20 units: Maximum of 10 units per block; and
o Blocks of more than 20 units: Highest of 10 units or 20% per block
Short Term Lets
Properties let as an AirBnb, holiday let or serviced apartment are acceptable providing the valuer confirms The security property is suitable for occupation under an AST;
The ICR calculation fits on the market rent based on an AST; and
There is demand for the property from both owner occupier and investor buyers.
CHL - Light refurb range: - three products: Light Refurbishment, Cosmetic Improvement and EPC Improvement. The first two products are designed to increase the future asset/rental value of the property, with the latter a Green Mortgage option which is specifically designed to improve the energy efficiency of the property.
Lending will be calculated on the pre-works value with a retention held based upon the post-works estimated valuation.
75% Max LTV: -
- Cosmetic Improvement – designed for improvement works to improve the cosmetic appearance of a property, such as painting & decorating, replacement flooring, replacement fixtures and fittings
- EPC Improvement – designed for non-structural and modernisation works which can be signed off under the Competent Person Scheme without the need for building control sign off, with a requirement the collective works must improve the EPC rating of the property to a C or above
- Light Refurbishment – designed for non-structural and modernisation works which can be signed off under the Competent Person Scheme without the need for building control sign off.
These also include (but not limited too) ex-local, above/ adjacent to commercial and new builds.
HMO product available where maximum number of permitted occupants is less than or equal to 6
If block of flats has over 3 storeys with cladding, it will not be considered.
Large HMO products available where maximum number of permitted occupants is more than 6; up to a max of 8 bedrooms
HMOs: up to 8 bedrooms and MUBs: up to 10 units
All Multi Unit blocks are classed as Large HMOs up to 10 units
First time buyer is defined as someone who has never owned a property. First time buyers are not acceptable as sole borrowers. First time landlord is defined as someone who has not operated a buy to let within the last 6 months.
First time landlords are acceptable where the borrower is currently an owner occupier, the deposit is from own sources and not gifted and the property is not above commercial premises, Ex-Local Auth, MoD or Housing Association, an HMO or Multi-Unit, a property where the borrower owns adjacent land or access road.
70% Max for HMO/MUFB
Available to trading Ltd Co. SPV’s, SIPPs, SASS's, Family/Discretionary Trusts and individuals.
HMO’s, student BTL. Multi-unit on 1 title, semi commercial and Commercial. - up to 20 bedrooms/units
70% Max for HMO/MUFB and Semi Commercial
65% LTV max for Commercial.
Commercial: 65% LTV - Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- Offices – 3 stories, single tenant & period/modern buildings
- Light Industrial / Storage / Distribution – post 1980s, max 20,000sqf, single or multi let, self-contained
Semi commercial
- 70% LTV
- £2m value (larger by exception)
- Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- office
- takeaways and restaurants/cafes
- pharmacies
- ICR to primarily be based on the Residential rental income only.
The Commercial rental income can be utilised subject to validate that:
- the last 12 months rental payments have been paid, and
- there is at least 12 months unexpired term on the current lease
- No vacant commercial
- Investor and Owner Occupiers allowed
- Sales & Letting marketability of 12 months or less
- Immediate occupation only
- Lease review by solicitors
Broker must call into Kent Reliance's team to discuss options for the Valuation.
Standard properties will be considered up to 4 flats on 1 title, if its above 4, then it will be considered specialist.
Kent Reliance can also lend on student lets, Up to 6 flats on 1 title allowed. Available in SPV Ltd Co and individuals.
Residential BTL properties in a condition to be let. No commercial properties. First Time Buyer First Time Landlord accepted with minimum employed income of £85,000.
Property value must exceed £75,000
Must be suitable for letting at completion
Must be in an area with strong rental demand as determined by our surveyor partners
No holiday lets, Airbnb, consumer buy-to-lets, shared ownership, Help to buy, Right to Buy or owner occupied properties.
Large HMOs/MUFBs up to 12 units
Trading Limited Companies are acceptable, however the company must have the related SIC code for property rental
Min. 1 years’ prior experience as a landlord for large HMO but Small Range HMO up to 6 bed, no experience required.
New builds (with full certificates in place)
Flats
Maisonettes
Apartments including new builds
HMOs (up to 15 rooms) and Multi Unit Freehold - *HMO product can be considered for first time landlords, and offer rental yield based valuations on small HMOs in Article 4 areas.*
Flats in blocks up to 5 storeys
Flats up to 10 storeys In Greater London
accepted subject to valuer’s commentary.
Ex-local authority flats considered - If in a privately
owned block (Greater London only)
Small HMO - First time landlords considered.
For LARGE HMO / Multi Unit - minimum 2 years experience as a property portfolio landlord.
HMOs with kitchenettes will be limited to 70% LTV.
-Commercial valuations on small HMO’s in article 4
-Commercial valuations on Large HMO's between 7-15 beds
-Multiple kitchens permitted at 75% LTV
-Student lets for small HMOs (up to 6 beds)
-MUFB/HMO combination acceptable
Other acceptable property details: -
-Ex local houses & Flats
-Deck access flats
-Properties next to/opposite commercial incl: pubs and places of worship
-Properties near food outlets (must be a min of one property between security and food outlet, subject to valuers comments)
-MUFBs, even if the client owns the Freehold and leasehold in separate legal entities
Multi Units
HMO's
Student Lets
Flats & maisonettes: private only
New build: -
A property is to be considered new if it is a first sale by the builder
However, properties which have not sold on physical completion will be considered on an individual basis
Timber framed construction:
Modern timber framed properties clad with masonry are considered as acceptable
Timber framed properties which are not deemed to be of a modern type clad with masonry will be reviewed on an individual basis and will be considered on their merits
Flying freeholds:
Flying freeholds will only be considered up to 20% of the total property area
Coal mining and other forms of extraction:
Any properties with a coal mining or metalliferous mining entry/feature within 20m of any building will not be considered
Electromagnetic fields:
Any properties within 100m of above ground high voltage electrical supply apparatus will not be considered
Contaminated land:
Where there is potential for contaminated land, a pass certificate must be available from an appropriate body
Japanese knotweed:
Where a property has Japanese knotweed (or any other invasive weed) located within or immediately adjacent to the site defined as category 4, 3 or 2 in RICS paper IP 27/2012, it will not be considered
Solar panels:
Properties where solar panels have been installed and are subject to a lease agreement will not be considered
If the solar panels are owned outright, the application will be reviewed on a case-by-case basis
Do not consider non-standard construction
20% maximum flying freehold
Standard BTL investment properties such as a house or Flat
HMO's up to a maximum of 6 bed - can also consider HMO' with 6 beds with more than 1 kitchen.
Multi units up to 6 beds - up to 75% LTV
Portfolio limit for landlords of up to 20 properties allowed with Precise Mortgages. For properties 11 - 20 LTV is capped at 70% and maximum exposure is £10m.
SIPP's and SAS accepted
Offshore LTD Companies and Trusts considered - Minimum loan size must be £750,000.
Flats in blocks exceeding five floors are considered by exception only. Consideration is given for highly experienced clients and where the valuation report provides strong commentary on sale & rental demand as well as location.
Minimum personal guarantee is 25% of the loan amount.
Complex commercial investments considered: - Including: Serviced offices, vacant commercial property, multi-unit lets on licenses and medium term planning gain projects. 2 years experience required
Flats above commercial and ex local authority 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
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.
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
premises Flats situated above restaurants/ takeaways/
launderettes: Max 60% LTV.
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.
New Build Accepted up to scheme limits. Vida Homeloans define 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
Flat Roofs Accepted
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
HMO's up to 6 bedrooms
MUFB's (Multi units) up to 6 flats on 1 title
Flats above commercial - up to 70% (£750,000 max)
HMO & MUFB properties will be valued on a ‘bricks and mortar’ basis only, Zephyr Homeloans will not undertake investment valuations.
If 3 year fixed rate – then calculation is decided on the higher of product or revert rate
For Limited Companies – use 125%
Commercial Owner Occupier – 165% on both C&I and Interest Only. Net Operating Income (NOI) to provide coverage at 165% at the pay rate (higher of the product or revert rate if a fixed rate product if selected)
Portfolio rental stress is at 5% - can consider a rental boost if falling short on rental income for portfolios.
BTL rental calculation has a 10% rent increase on a 5 year fixed and can consider top slicing
If the individual stress rate for the application is below the portfolio stress of 5%, the lower stress rate will be factored into the overall assessment of the portfolio.
****************
Single unit properties
Individuals: - 145% for a higher or additional rate tax payer (120% including use of surplus income).
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate – otherwise, pay rate.
125% for a basic rate tax payer (110% including use of surplus income).
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate – otherwise, pay rate.
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HMO’s
Individuals (higher or additional rate tax payer) - 185% or 160% including use of surplus income
Companies or Individuals (basic rate tax payer) - 155% or 140% including use of surplus income
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate.
Higher of pay rate, or reversion rate +0.75% if 5 year fixed
****************
Multi-Unit Freehold
Individuals (higher or additional rate tax payer) - 145% or 120% including use of surplus income
Companies or Individuals (basic rate tax payer) - 125% or 110% including use of surplus income
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate.
Higher of pay rate, or reversion rate +0.75% if 5 year fixed.
They have some flexibility on their DSCR or rental stress coverage
Higher rate tax payer from 145%.
All 5 year fixes at pay rate
Individual or Ltd Co 145% at 6.79% or variable rate if higher when the case is a purchase or capital raise remortgage. £4£
Remortgages are 130% at 6.79% or variable rate if higher.
Cases on a 5 year Fixed can be assessed at Pay Rate x 145%/ 130% as before.
All limited company rental calculations, including for HMO and MUB products, are based on 125%.
Please refer to Fleet Mortgages Product Guide for more details on payrate calculations
Personal name: BTL 140% HMO over 6 bedrooms - 155%
5 year fixed - stressed at pay rate
2 year fixed - stressed at pay rate + 2%
5:2 – stressed at payrate
ICR will be calculated using a stressed rate of 5.5%, or the initial pay rate + 1.55%, whichever is higher.
However, the following exceptions apply:
if the case is a remortgage with no additional borrowing, ICR will be calculated using the initial pay rate + 1.05%, with no minimum stress rate.
if the 5 year fixed rate is being used, ICR will be calculated using the initial pay rate, with no additional margin or minimum stress rate.
Standard Property
Single dwellings
HMO/multi/student lets with up to 5 rooms.
Freehold blocks/titles of land with up to 4 residential units.
Personal Applicants
140% rental cover applies
Limited Company
125% rental cover applies
Specialist Property
HMO/multi/student lets with 6 or more rooms
Freehold blocks/titles of land with 5 or more residential units.
Personal Applicants
160% rental cover applies
Limited Company
145% rental cover applies
Semi-Commercial/Commercial: The Debt Service Cover Ratio (DSCR) is 125% of pay rate
Kent Reliance Rental Calculator
Limited company applicants: 125% @ 5.50%
Individual applicants: 140% @ 5.50%
Expatriate applicants: 125% @ 5.50%
For remortgage applications without a capital increase or purchases where the initial fixed rate is 5 or more years in duration, the following underlying ICR rates will apply:
Standard properties up to 75% LTV: 125% @ pay rate
Standard properties up to 80% LTV: 130% @ pay rate
HMO/MUFB properties: 130% @ pay rate
Expatriate and FTL applicants: 135% @ pay rate
The underlying affordability of the background portfolio for an applicant will be considered against a minimum underlying ICR rate of 125% @ 5.5% to 125% @ 5.0% - where an application fails this test. We may consider and application using up to 10% of the declared income (subject to minimum income of £100,000). The Landbay affordability model will take into
account a number of elements including other income.
Basic rate taypayers (20%) 125%
Limited company or LLP 125%
Higher rate taxpayer (40%) 140%
Additional rate taxpayer (45%) 140%
Refinance (no capital raised) 125%
HMO / Multi units
Basic rate taypayers (20%) 130%
Limited company or LLP 130%
Higher rate taxpayer (40%) 145%
Additional rate taxpayer (45%) 145%
Refinance (no capital raised) 135%
@ 5.5%
If 5 year fixed then use 4.19%
<5 yr fix 125% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 125% @ 4%
*******
Lower Rate Tax Payer: -
<5 yr fix 125% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 125% @ 4%
***********
Higher Rate Tax Payer: -
<5 yr fix 140% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 140% @ 4%
***********
Paragon HMO: -
Ltd Co:
<5 yr fix 130% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 130% @ 4%
Lower Rate Tax Payer: -
<5 yr fix 130% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 130% @ 4%
Higher Rate Tax Payer: -
<5 yr fix 145% @ 5.5%/pay rate + 2% if higher. 5 yr fix or more 145% @ 4%
125% of product rate for 2 years deals and pay rate for 5 year fixed deals
Individual – 140% of product rate for 2 year deals and 5yr fixed deals available @ 140% of pay rate
Individual – rental calculation is 140% x the highest of Pay rate or Reversion rate + 2%
Tracker products - @ higher of pay/revert rate + 2% (min 5.5%)
Please visit BTL calculator at Precise BTL Calculator
<5 yr fix @ higher of pay/revert rate + 2% (min 5.5%)
Please visit BTL calculator at Precise BTL Calculator
5year + fix 125% @ pay rate
Simple refinancing assessment required where LTV is > 60% on a 5yr + fix
********
Lower Rate Tax Payer: -
Tracker products - 125% @ higher of pay/revert rate + 2% (min 5.5%)
<5 yr fix 125% @ higher of pay/revert rate + 2% (min 5.5%)
5year + fix 125% @ pay rate.
Simple refinancing assessment required where LTV is > 60% on a 5yr + fix
*********
Top slicing 110% of payrate even on 2 year rates
Higher Rate 145%, Limited Company 125%
£ for £ remortgage none
(5 year fix, 10 yr term)125% @ Pay rate AND Outside Portfolio check 110% @ 7%
(Variable rate & fixed upto 5 yrs) Margin + 2.40% stress min 5.5% x 125% AND
Outside Portfolio check 100% @7%
*******
Lower Rate Tax Payer: -
(5 yr fix, 10 yr term+) 155% @ Pay rate, AND Outside Portfolio check 110% @ 8%
(Variable rate & fixed upto 5 years) Margin + 2.40% stress min 5.5% x 140% AND outside Portfolio check 100% @ 8%
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Higher Rate Tax Payer: -
(5 yr fix, 10 yr term+)155% @ Pay rate, AND Outside Portfolio check 110% @ 8%
(Variable rate & fixed up to 5 years) Margin + 2.40% stress min 5.5% x 140% AND Outside Portfolio check 100% @ 8%
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Shawbrook HMO: -
(Limited Co: - 5 yr fix, 10 yr term+)150% @ Pay rate,AND Outside Portfolio check 110% @ 7%
(Variable rate & fixed upto 5 years) Margin + 2.40% stress min 5.5% x 150% AND Outside Portfolio check 100% @ 7%
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Lower Rate Tax Payer: -
(5 yr fix, 10 yr term+)175% @ Pay rate,AND Outside Portfolio check 110% @ 8%
(Variable rate & fixed upto 5 years) Margin + 2.40% stress min 5.5% x 160% AND Outside Portfolio Check 100% @ 8%
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Higher Rate Tax Payer: -
(5 yr fix, 10 yr term+)175% @ Pay rate,AND Outside Portfolio check 110% @ 8%
(Variable rate & fixed upto 5 years) Margin + 2.40% stress min 5.5% x 160% AND Outside Portfolio check 100% @ 8%
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Ltd Co/LLP: 125% ICR
HMO/MUFH: 140%
New Build Flat / Above Commercial: 125% BRTP / HRTP 140%
5 year fixed products @ pay rate
All other products; nominal rate (5.5%) or the initial rate +2%, whichever is higher.
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Minimum rental calculator for background portfolio is 125% @ 5.5%.
No maximum LTV
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
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.
Pay rate for 5 year fixed rates
Basic rate taxpayers- 125% based on higher of Pay rate +2%, reversion rate or 5.5%. Pay rate for 5 year fixed rates
Limited Company: -
125% based on higher of Pay rate +2%, reversion rate or 5.5%. Pay rate for 5 year fixed rates
All MUFBs, HMOs and Flats above Commercial: - Individuals 150% based on higher of Pay rate +2%, reversion rate or
5.5%. Pay rate for 5 year fixed rates
Limited Companies
135% based on higher of Pay rate +2%, reversion rate or 5.5%. Pay rate for 5 year fixed rates
If the lease has less than 85 years remaining, then the maximum LTV is capped at 75%
Paragon can consider a lower lease if this is being extended upon completion.
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If less than 85 years remaining, then Shawbrook will require further commentary from the valuer in addition to the standard reports
Ground rent and Service Charges must be included in cash flow projections (portfolio landlords only)
for leasehold properties
Applicants for leasehold properties should not hold a controlling interest in the Freehold.
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 145% at 5%
Portfolio Landlord Criteria
– No limit on the amount of lending with Aldermore Bank
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – All cases
– Cashflow Statement – All cases with 11 or more mortgaged BTL’s with Aldermore
– Asset & Liability Statement – All cases with 11 or more mortgaged BTL’s with Aldermore
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio or properties
– Minimum landlord experience of 12 months.
Portfolio Landlord Criteria
– Maximum portfolio lending held with CHL group £2.5m for the first 12 months then £5m.
– 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
– Portfolio Schedule – All cases
– Business Plan – All cases
– Asset & Liability Statement – All cases
– Cashflow Statement – All cases
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– Maximum – No Maximum Portfolio or LTV size if we are not lending on them
– A minimum rental stress – The portfolio should just be making a profit as a whole
Portfolio Landlord Criteria
– No maximum limit with us but looked at on a case by case basis – Each property that is brought to us must meet our criteria as a rule of thumb. We have internal limits so any Portfolio’s should be discussed with us first to assess our current appetite
– No limit on the size of existing portfolio with other lenders - Correct
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – Required
– Cashflow Statement – Not required
– Asset & Liability Statement – Required
* Lender will accept client versions so long as covers the lenders minimum requirements.
(Landlords are considered Portfolio Landlords if they have 4 or more mortgaged properties.)
Background Portfolio Requirements
- 75% max LTV for the overall portfolio.
- Currently stressed at 125@5%.
- Currently no limit on the size of the background portfolio, either in terms of number of properties or loan amounts.
Additional Document Requirements
- Portfolio Schedule to be submitted on the BTL Hub.
- Portfolio Landlord Questionnaire.
Background Portfolio Requirements
– Maximum 75% LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5% across the portfolio with at least 100% coverage for each mortgaged property
Portfolio Landlord Criteria
– FHL to an aggregate borrowing of £5m
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – Not required
– Cashflow Statement – Not required
– Asset & Liability Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements
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.
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5%
Portfolio Landlord Criteria
– No limit on the amount of lending with One Savings Bank
– 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
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5% – see lender calculator
Portfolio Landlord Criteria
– Aggregate borrowing with Kensington of up to £2mill
– 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 – Not required
– Cashflow Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5%
Portfolio Landlord Criteria
– No limit on the amount of lending with One Savings Bank
– 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
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5%
Portfolio Landlord Criteria
– No maximum on number of properties with Landbay to an aggregate borrowing of up to £2.5m
– 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 – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5%
Portfolio Landlord Criteria
– Maximum of 20 loans to £5 million total BTL borrowing with Lendinvest
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – Not required
– Asset & Liability Statement – Not required
– Cashflow Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– No minimum rental stress requirements
Portfolio Landlord Criteria
– Aggregate borrowing of £10m (Paragon Premier) & £5m (Paragon Core)
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – Case by case
– Asset & Liability Statement – Case by case
– Cashflow Statement – Case by case
* Lender will accept client versions for all documents
NB – Portfolio assessment will be valid for 6 months when using the Forward Funding Facility
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– The overall portfolio will be assessed to ensure affordability is present to support it moving forward .
Portfolio Landlord Criteria
– Up to 3 with Pepper Money to an aggregate borrowing of £3m
– Maximum of 9 Buy to Let properties, including the application property(s)
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
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– Click here to complete the online viability check
Portfolio Landlord Criteria
– Up to 20 mortgages with Precise Mortgages - please check product guide for further information.
– 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 – Not required
* 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.
Background Portfolio Requirements (Example)
– No maximum LTV for the overall portfolio
– Unlimited number of properties – Stressed at 100% @ 5% Portfolio Landlord Criteria (Example)
– Up to 20 mortgages with Quantum Mortgages to an aggregate borrowing of £5m
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements (Example)
– Portfolio Schedule – All cases, can use the client’s own format to upload for packaging.
Background Portfolio Requirements
– Maximum 75% LTV for the overall portfolio
– A minimum rental stress of 100% at 8% (for individuals) & 7% (for Limited Companies)
Portfolio Landlord Criteria
– No limit on the amount of lending with Shawbrook Bank
– No limit on the size of portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Asset & Liability Statement – All cases
– Business Plan – Not required
– Cashflow Statement – Not required
*Lender will accept client versions so long as covers the lenders minimum requirements
Background Portfolio required rental calculation is 125% @ 5.5%
No current maximum LTV - It is calculated on a case by case basis.
Eligibility window for portfolios - Multi App product - 6 months for Portfolio landlords and 3 months for Non-Portfolio.
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
• Requires at least 1 year’s experience of owning a BTL property
• Up to 20 properties with a maximum of £4,000,000 in a Vida portfolio
• Overall portfolio, including current application and any Vida borrowing, no maximum number of properties including unencumbered properties.
Average LTV up to 80%
• Rental stressing as stated in ‘Rental Calculation’ above will only be applied to
mortgages held with Vida. Other properties will be assessed by comparing their
rental income to the mortgage payment.
• Top Up from surplus income is not available for portfolios
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A sample check of a portfolio will be concluded at a minimum of 25%. Rental coverage on the overall portfolio will need to meet 100% of any contractual monthly payment.
Portfolio Landlord Criteria
– No limit on the amount of lending with Zephyr Homeloans
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule (overview) – All cases
– Business Plan – All cases
– Cashflow Statement – All cases
– Asset & Liability Statement – All cases
* Lender will accept client versions so long as covers the lenders minimum requirements
Where a client does not have an income then proof may be sought of a reasonable amount of savings in the background. Rental income is a form of income though.
Where income was previously required to be evidenced by the last three months’ bank statements, it can now be evidenced through:
Last month’s payslips and last P60 for employed applicants OR
Last year’s accounts or SA302 for self-employed applicants OR
Evidence of pension income for retired applicants (pension income statement, payslip) OR
Trust funds, investment and rental income as additional income (SA302 or income statement)
Where none of the above is available, bank statements, showing activity over the last three months, will be accepted.
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Minimum income of £25,000 is required for applicants who do not currently own a Buy to Let property.
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Minimum income of £40,000 is required for applicants who do not currently own a Residential property. Unless they have 4 or more Buy To Lets.
Expatriates - £50,000, verifiable income.
2 years income is required for all self-employed applicants for income-backed products.
Require no proof of income for portfolio landlords, whether they're employed or self-employed (please note, this is still a
requirement for non-portfolio landlords).
For time buyer and first time landlords the applicant must be employed and earning £85,000.
£15,000 (Combined) for experienced landlords with more than 24mnths rental experience.
Proof of rental and income is required on all cases.
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Incomes considered:
Rental/Portfolio
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Consider re-invested funds that have gone back into the portfolio OR investment projects.
Paragon can consider retained profit as long as the business does not required it for continued business. Such as an antique dealer.
Non-portfolio: -
Applicants should have a minimum combined gross annual income of £25,000 per annum.
Applicant’s income can include:
- gross employment income
- taxable self employed income
- Occupational or private pension income
Income from renting property, state benefits, state pensions and investment income will not be considered, but may be taken into account when calculating the tax band applicable to an applicant.
There is no minimum income requirement for expatriate applications, but details of all income must be provided.
Portfolio landlord income: -
Applicant(s) should have a minimum combined gross annual income of £25,000 per annum. All income must be evidenced and can include:
-Gross employment income
-Taxable self-employed income
Income from state benefits, state pensions and investments will not be considered, but may be taken into account when calculating the tax band applicable to an applicant.
Rental income can be taken into account, as long as it is not more than 50% of their income.
UNLESS: -
Rental Income as an allowable and standalone income stream for professional landlords with 11 properties or mor only.
No proof of income is usually required except where basic rate tax payer and then ONE piece i.e latest payslip is required (nothing if buying through a LTD Co.).
Min time in employment, 12 months continuous, 12 months trading if self-employed including professional landlords.
To qualify as a professional landlord clients need to own min 5 props.
Bank statements are not usually required however if Tiers 2 or 3 then 3 month’s salary and bank statements are required.
Foreign National or Expat need min income of £35k GBP equivalent
At least one applicant to be earning £50,000 if using earned income to make up a rental shortfall;
£25,000 gross income required if the applicant’s employment is “professional landlord”. Gross income is the amount of verified income that a limited company director or individual receives
DSS tenants
Housing association tenants
Corporate tenants
Single family lets
Sharers
Students
All above considered.
Minimum income is not required, however, must be able to prove resilience to loan payments.
Personal guarantees are required from Directors for Ltd company deals, but on a case by case basis, may consider exceptions.
Affordability of application will be assessed in one of 2 ways
Where more than 1-year holiday rental income can be evidenced by accounts, the gross annual rental income should be equal to or exceed the Debt Service Cover Ratio (DSCR) at 130% after deducting the operating costs of the holiday let. There will be a secondary calculation to ascertain that market rental income can also cover a minimum of 100% of the DSCR to provide a satisfactory exit route
Where there are no accounts available, using the DSCR that can be achieved on a monthly Assured Shorthold Tenancy (AST) for the property, calculated at 130% DSCR (less 10%
operating costs)
Valued as single dwelling house
ICR based on single AST rental income
There can be no title restrictions
Customer must own 2 other BTLs (with one having been held for more than 12 months) with application income of £30,000
No HMOs/MUFBs can be considered
Max 5 bedroom house at 75% LTV
Property must be in a location with a letting demand for an assumed 6-month AST, specialist holiday lets in remote locations where there is no long term tenant demand are unacceptable
Assumed AST rental income will be used for affordability and viability of exit assessment
Deposit coming from family member abroad: - Must be held in a UK bank account for 30 days untouched with an audit trail of where the monies have come from.
Gift letter required from deposit provider.
ID will be required and evidence of funds.
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Cash in the Bank/Available
· Savings – provided from applicants own resources
· Limited Company/LLP – Reserves, working capital
· Other – case by case basis
Cash Not Yet in the Bank/Available
· Sale of property or Pending sale – evidenced for example by a letter from solicitor
· Sale of Shares/investment – evidenced for example by a contract note
· Inheritance – evidenced for example letter from solicitor
· Equity from another Property - evidenced for example by a Mortgage offer
OVERSEAS DEPOSITS:
These can be considered by referral (FATF and EEA only).
CONCESSIONARY PURCHASE:
Considered if purchasing from a close relative (as above).
Deed of Gift
Intercompany Loans
Directors Loans
Issue of share capital (for Incorporations only)
Example: - will allow a sale below market value but will base LTV on the lower of the 2 prices. E.g: If immediate family had a BTL worth £150,000 he could sell it to applicant for £100,000 then Precise will allow that but they would lend at 80% of the £100,000 and the 20% deposit would need to come from the clients own sources.
Will also consider Directors Loan Account(DLA) for LTD Company where selling BTL to their own LTD Co
Must NOT be a consumer BTL.
OVERSEAS DEPOSITS:
These can be considered by referral (FATF and EEA only).
CONCESSIONARY PURCHASE:
Considered if purchasing from a close relative (as above).
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Where the purchase price is a discount of 2.5% or more from the Vida valuation and the borrower is buying a property from a close relative, or a long standing tenant is buying from the landlord. The mortgage can be up to 75% of the OMV report and up to 95% o the
purchase price with the applicant providing at least a 5% deposit
Where the property is being purchased from a family member at a discounted price they may not continue to reside in the property and must relinquish all rights to the property
For a limited company, you do not need to be a homeowner. But must own a BTL.
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HMO: At least one applicant or director must have owned, let and still own one or more BTL property for a minimum of 12 months.
First Time Buyers applicants who have never owned a property are not allowed, First Time Landlords are acceptable
Note for:
MUB
APPLICANTS At least 1 applicant must have 1 years letting experience.
HMO
APPLICANTS At least 1 applicant must have 1 years letting experience.
• At least one applicant or director must have owned and still own at least one property, residential or buy to let, for a minimum
of 12 months.
Landlord Experience: HMOs & MUFBs
• At least one applicant or director must have owned, let and still own one or more BTL properties for a minimum of 12 months.
If this is not evident on a credit search, then verification from the applicant or director will be needed.
Applicants are required to demonstrate they have sufficient income to cover their existing expenditure. Personal credit commitments, including any unsecured debt, credit cards (calculated at 3% of outstanding balance annualised), HP liabilities and mortgage/domestic rent payments, will be annualised and cross referenced to the individual’s annual income to establish their Debt to Income Ratio (DTIR). The DTIR should not ideally be more than 40%. Surplus rental income over that required to meet our stressed affordability requirements can be included in personal income.
Max loan is £600k
A first time landlord can be defined as someone who has not operated a buy to let property within the last 6 months.
If the applicants are currently non owner occupiers, evidence they have previously owned a property will be required at full mortgage application. If they are unable to provide evidence of this, the applicant will be classed as a first time buyer which is not acceptable.
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First Time Landlords are acceptable where:
o The borrower is currently an owner occupier
o The deposit coming from own resources and not gifted
o The property is not either:
- Above commercial premises
- Ex-local Authority, MoD or Housing Association
- A property where the borrower owns adjacent land or access road
- A House in Multiple Occupation (HMO) or a Multi-Unit Block / property (MUB)
Must already their own a residential property.
Must be earning £25,000 and be able to evidence it.
First time buy and first time landlord is considered but must be employed and earning £85,000 and be buying a single unit property.
-75% LTV
-One applicant must be owner occupier for 6+ months - other applicants can be first time buyer
-Minimum income - £30,000 per application
-Standard let properties & small HMO's (max 6 beds)
Experienced landlords - where one applicant holds 2 BTL with 12+ months rental experience
- Other applicants can be FTB/FTL
- 80% Loan to value
- No minimum income
-No requirement for any applicant to be owner occupier.
Small HMO only
HMO product can be considered for first time landlords, and offer rental yield based valuations on small HMOs in Article 4 areas.
Ltd company: - not required to be a homeowner but is required to be a BTL landlord and own a current BTL.
Note for First Time Buyer and First time landlord: - 75% LTV for FTB FTL - must fit on the ICR rental calc as normal but also fit on residential affordability capped at 3.5x income.
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£350,000 to max LTV for First Time Landlords
At least one applicant or director must have owned, let and still own one or more BTL property for a minimum of 12 months.
See Type/ Commercial tab above for property restrictions.
We will lend to FTL’s where the applicant or at least one Director (if a Limited Company) currently owns a residential property with no
arrears history for at least 1 year.
Up to 70% LTV on all commercial products (up to 75% LTV is exception only) - the following criteria is applied: -
1. City Centre Location
2. High location demand
3. Strong tenant potential
4. Top quality property (most properties build 1960s will be kept at 70% LTV).
Restrictions on numbers with other lenders - maximum. Interest only considered on Residential property types.
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Aldermore Commercial's minimum experience required for HMO products is 3 years as a landlord. Each case is considered on it's own merits.
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Property with Planning Use Classes Order other than:
– C3(a)(b)(c)
– C4 (including – HMO with an ‘Article 4 direction’ in place) – HMO with Sui Generis planning use
Property subject to a shared ownership deed
Property with preemption clauses in existence
Mobile homes
Houseboats
Property held on a Common hold basis
Freehold flat or freehold maisonette
Property where a flying freehold exists and affects more than 15% of the total floor space
Property with restrictive covenants or sale ability; e.g. retirement homes/houses or apartments found within a holiday park and sheltered housing schemes
Farms, smallholdings or properties with agricultural restrictions in place
Newly built or newly converted flat
Serviced flats/apartments
Studio flat and/or flat with a total floor area of less than 30sq meters
Flat in a block with more than three floors above ground floor and which does not have a lift Notes: top floor and attic can be considered as one floor, if they are part of the same flat
No exposure limit on percentage within the block
Bespoke student accommodation
Prefabricated building and un-repaired PRC construction
Property listed as defective under the 1984 and 1985 housing acts unless rebuilt to NHBC standards and with appropriate guarantees. The adjoining properties must also have been repaired to the same standard.
Wimpey No-Fines (if constructed prior to 1946 or bungalow or flat)
Laing Easiform construction (if constructed prior to 1966 or bungalow or flat)
Property where high alumina or Mundic block cement has been used in the construction.
Timber framed property that does not have a brick or “block and rendered” outer skin
Steel framed constructions except post-1987 construction within BBA or WIMLAS certification
Property constructed using concrete Large Panel Systems (LPS)
Property on which there is a local authority grant outstanding
Live/work units (unless part of Tailored BTL transaction)
Property with an anticipated lifespan of less than twenty-five years beyond the end of the mortgage term and/or where the condition significantly affects marketability
Property with no kitchen
Single residential investment property with more than two kitchens.
Property with no bath/shower room
Property which has shared access where a relative of the applicant resides in the other property
Property which has any shared services with any adjoining or adjacent property which does not form part of our security
Property which is being bought from the applicant’s own limited company (unless Tailored BTL transaction)
Grade 1 listed or Scottish equivalent Grade A listed security
Where satisfactory tenant demand does not exist or the proposed security is considered unsuitable for private renting.
Consider Public Houses, Healthcare and hospitality
Interest only considered on all property types on a 10 Yr. Term
Applicants:-
One applicant must be either:
Employed
Self-employed
A contractor
Retired
CHL will not accept any applicant who is under any employment furlough scheme.
Development exposure limits in any block increased to:
o Blocks of up to 6 units: Maximum of 6 units per block
o Blocks of 7 to 20 units:
Maximum of 10 units per block; and
o Blocks of more than 20 units: Highest of 10 units or 20% per block
No limit on the size of their portfolio elsewhere.
No Ex Local Authority Flats (sometimes considered within M25)
Standard BTL's only, no HMO's, Students, DSS etc)
Multi Unit Freehold (max 3 units in the freehold) – Client must not live in one part – Will lend on the Freehold value.
No Studio flat and/or flat with a total floor area of less than 30sq meters
No agricultural restrictions.
Loans mortgage in any one full postcode per borrower.
Foundation Home Loans’ maximum portfolio size is £3 million with no limit on number of properties.
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Where multiple applications in the same location are received, underwriters should consider:
Property location, i.e. are the properties in a location where multiple lets could easily be obtained and whether there is any relationship between the applicant and the vendor/developer of new properties, i.e. is the applicant genuinely trying to create a personal portfolio, or does he have an interest in the properties and is this an attempt to obtain a cheap source of commercial finance, in which case the application should be declined
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The Company will review concentration risk across the whole of the lender portfolio (Foundation Home Loans) where over exposure may necessitate a decline of the application.
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Acceptable SIC Codes for SPV Ltd companies are:
68100
68209
68320
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All properties with Foundation Home Loans must achieve a minimum EPC rating of E. Properties that do not meet this standard will be subject to further underwriting with all offers made on condition of full remediation so it meets min E rating prior to receipt of Certificate of Title.
Debt consolidation is considered up to 80% LTV for BTL's.
(InterBay/OneSavings Bank/ Kent Reliance Building Society)
Interest only considered on all property types up to a 10 years.
There is a 0.50% loading for Interest Only terms for 11-30 years.
36 month tenancies can now be considered:
• The AST provides for a rent review every 12 months or less
• A minimum Debt Service Coverage ratio of 125%
• A maximum LTV of 75%
HMO’s, student BTL. Multi-unit on 1 title, semi commercial and Commercial. - up to 20 bedrooms/units
70% Max for HMO/MUFB and Semi Commercial
65% LTV max for Commercial.
Holiday lets considered up to 70% LTV on a residential investment basis available for Ltd company also.
Commercial: 65% LTV - Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- Offices – 3 stories, single tenant & period/modern buildings
- Light Industrial / Storage / Distribution – post 1980s, max 20,000sqf, single or multi let, self-contained
Semi commercial
- 70% LTV
- £2m value (larger by exception)
- Acceptable usage
- selected retail (high street and suburban/neighbourhood precinct)
- office
- takeaways and restaurants/cafes
- pharmacies
- ICR to primarily be based on the Residential rental income only. The Commercial rental income can be utilised subject to validate that:
- the last 12 months rental payments have been paid, and
- there is at least 12 months unexpired term on the current lease
- No vacant commercial
- Investor and Owner Occupiers allowed
- Sales & Letting marketability of 12 months or less
- Immediate occupation only
- Lease review by solicitors
Gross rental income must be 125% at 5.50% or the pay rate, whichever is greater (including fees added) for BTL
There is no overall portfolio limit with other lenders. Maximum portfolio size with Kensington is £2 million or 6 properties, whichever is the lowest.
Where a landlord has 4 or more properties with Kensington, the portfolio will be subject to a weighted average LTV of 75%. Buy to Let properties cannot be rented to family members.
and MUFBs accepted - remortgage only.
No restrictions on numbers with other lenders. No minimum requirements to have current BTL's.
Unless HMO, then they require the applicant to already own a HMO property.
Tenancy: -
For all Buy-to-Let lending, the property must be let on an Assured Shorthold Tenancy or a contractual tenancy.
36 month tenancies can now be considered:
• The AST provides for a rent review every 12 months or less
• A minimum Debt Service Coverage ratio of 125%
• A maximum LTV of 75%
A fixed term of 12 months can be considered up to 85% LTV.
Director Loans:
A non-interest bearing director loan is acceptable subject to:
• The individual is transferring a current/purchasing a new property into a company structure;
• Purchase price is at full market value to ensure tax liabilities are paid in full;
• The individual providing the director loan is a shareholder within the business;
• They are investing in the company by way of a directors loan and it will be included in the subsequent company accounts;
• The difference between the mortgage and the purchase price is covered by the director loan.
Property value must exceed £75,000
Must be suitable for letting at the completion
Must be in an area with strong rental demand as determined by our surveyor
partners
No holiday lets, Airbnb, consumer buy-to-lets, shared ownership, Help to buy, Right to Buy or owner occupied properties
HMO /MUFB – Maximum loan £750,000. Maximum Loan to Value 70%.
Large HMOs/MUFBs up to 12 units
Properties above commercial. Maximum loan £750,000. Maximum Loan to Value 70%.
Min. 1 years’ prior experience as a landlord
For Large HMO’s/MUFB cases, a minimum of 12 months experience managing a similar size property. No first time HMO operators.
Ltd Companies (Limited Companies must be NON-Trading SPV's);
SPV, property trading companies and layered companies
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Maximum of 25 loans to £5 million total BTL borrowing with Lendinvest. Above £3m of borrowing the aggregated LTV on the portfolio will be restricted with a maximum exposure on any Buy-to-Let portfolio of loans with LendInvest of £5,000,000 at a maximum LTV of 60%.
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First time landlords considered for standard properties (£30,000 income needed):
2 years experience of managing a buy to let portfolio required for HMO.
HMOs with kitchenettes will be limited to 70% LTV
The Bank will consider lending on the following property types:
Houses, Flats (including HMO Flats), Maisonettes, Apartments. Including New Build (with full certificates in place)
Studio Flats - (in London only; max 70% LTV) with a minimum gross internal floor area of 30 sq. metres. Accepted subject to underwriting & valuers commentary.
For Flats in a block up to 5 storeys (must have a lift if over 3 storeys). Flats up to 10 storeys accepted in Greater London.
Ex Local Authority flats if in a privately owned block (Greater London only)
Leasehold properties must have at least 65 years remaining at the end of the mortgage term. Commonhold and Shared Ownership are not accepted.
Existing HMO's must have all appropriate licences in place. New HMO's must meet all local authority licensing requirements prior to completion and an HMO licence must be obtained within 90 days post completion.
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Concentration
No more than 4 units (must have lift if above 4) or 25% of total units allowable in one block (blocks of flats is 25% or 4 units whichever is the lower).
-Day 1 remortgage, borrow against the enhanced value post works at any time
-Borrow on 75% of flats in a block with a max of 5 units in a single block.
Maximum of 15 properties in one post code location (eg BH15 1)
Exposure in block - 4 or below units = 50%, 5-10 units = 40% or max 4, 10 or more units = 25% or max 5.
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Property above Commercial:
Flats above public houses or food premises are not accepted - refer if not.
Where a shareholder with less than 25% shareholding or a director who can be defined as having a significant controlling role in the business we will require personal guarantees and these officers to be added to the application.
Company structures - up to 3 layers as long as the same directors and shareholders are constant throughout. Holding company must have property SIC code or holding company related and hold no more than 5 companies inc Lendinvests.
Maximum of £10,000,000 of lending with Paragon (Both Mortgages and Premier).
Paragon no longer require a floating charge on all portfolio applications for limited companies, (required if purchasing / remo in Scotland) incorporated solely for the activity of holding and letting residential properties
Portfolio landlords accepted as both individual or Ltd company ownership.
All shareholders whether 1% or more - Pepper will want to know who they are and what the relationship is - must be over the age of 21.
Ltd co has to be active
Must have no disqualified directors
All directors must be natural persons
No minimum trading period
No debentures to be present
No current adverse credit
SIC codes allowed: - 68100, 68201, 68209, 68320
Sales of main residence acceptable repayment with no minimum.
Maximum of 9 Buy to Let properties, including the application property(s) unless Limited Company then it's 16, including the application property(s).
This is per individual and will include any joint or limited company loans held that the applicants are party to.
It will therefore not be possible to exceed the maximum stated above if applications are made jointly.
Where a client holds a portfolio of loans with other lenders these will be disregarded for portfolio maximum purposes.
However the conduct of those loans will be taken into consideration and they must be conducted satisfactorily over the last 12 months.
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Pepper will consider Wimpey No Fine and Lang Easy Form even though no they are non-standard construction. This is on a case by case basis and is referred to an internal property team within Pepper.
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Studio flats considered over 35sqm
- The bill must be repaid in full on completion including penalties
- Satisfactory explanation as to why not paid
- Copy of the latest tax bill.
Directors do not need 12 months experience unless HMO.
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Maximum of 20
buy to let loans per individual
5 @ 80% LTV and 5 @ 75% LTV
(including buy to let loans which the individual has
guaranteed), with
Precise Mortgages up to a combined value of
£10,000,000.
Unlimited with other
lenders.
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HMO Licensing: -
Any application for a HMO license required by the Local Authority, must have been made prior to completion.
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HMO. Can consider student lets up to 8 bedrooms with locks on doors (no bedsits and must have communal area), single or multiple ASTs. On traditional BTL criteria student lets can be considered, where max 4 students on ONE AST, NO locks on doors, No communal areas used as bedrooms i.e. 4 friends renting a 4 bed house together otherwise put on HMO.
We do not allow any restrictions on properties including agricultural.
Can consider the following: -
Flats including studios below 30sqm, New build flats, Ex local authority flats with deck access up to 12 floors, High Rise, MUB, HMO, Holiday Lets, Airbnb, Semi Commercial Units, BTL investor led developments, properties located above or adjacent to commercial except petrol stations and hazardous industrial units including food or alcohol
Interest only considered on all property types on a 10 Yr. Term.
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For light refurbishment deals we now only need clients to be able to demonstrate either relevant property sector experience (this could be on an employed basis) or 1 similar completed project within the last 5 years.
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Do not accept consider where the parent company ownership structure is incorporated in the Cayman and British Virgin Islands (BVI).
Can consider: -
Individuals (UK and EU nationals residing in the UK)
LTD Company (UK Incorporated)
PLC (UK Incorporated)
LLP (UK Incorporated)
Trusts (Minimum Loan size £1m new loans, Refinances case by case)
SIPPS (Minimum Loan size £1m)
Ex-pats
Minimum personal guarantee is 25% of the loan amount: -
• Non-refurbishment STL
• Specialist BTL (including large loans)
• Commercial investment product ranges.
AVM's possibly available for Small HMO's that are valued on single dwelling basis
Thatched roofs have been added to ‘Non-Standard Construction’ types
Cladded blocks are unacceptable without a satisfactory EWS1 form.
Tenure
Freehold and Feuhold (in Scotland) acceptable
Leasehold with minimum 50 years remaining at the end of the mortgage term is acceptable
Tenancy
An assured shorthold tenancy agreement (AST) for a period of between 6 to 12 months is required. Protected tenancies are considered subject to demand for resale as confirmed by the valuer.
See also "Other" for Holiday Lets, Serviced Apartments and Airbnb and Local Authority and Vulnerable Tenants.
Demand for Sale
Unless stated differently below by asset type 75% LTV Interest Only is permitted on all security when sales are
achievable within 12 months
Demand for Letting
Unless stated differently below by asset type 75% LTV Interest Only is permitted on all security when letting is
achievable within 0-3 months
AST re-letting demand is classified as follows
Expected 0-3 months – 75% LTV Interest Only is permitted unless stated differently by asset type.
Moderate 3-6 months - LTV reduced by 5%to 70% LTV
Weak 6+ months – Not acceptable.
Maximum of a single unit in developments of up to 7 properties, or 25% of units in developments of between 8 and 50 properties and 15% where the development comprises of 50 properties or more.
A maximum of 20% of properties within any individual full postcode area. Exceptions to this may be considered on a case by case basis.
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.
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
Flats situated above commercial premises: Max 75% LTV
Flats situated above restaurants/ takeaways/ public houses/ 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: - At least one of the applicants must have a minimum of 12 months landlord experience. Up to 8 bedrooms considered.
Minimum value £100,000.
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.
• 25% of units in developments of between 8 and 50 properties
• 15% where the development comprises 50 properties or more
• To a maximum of 20% of properties within any individual full postcode
The exception would not relate to MUFBs where we may lend on the whole unit which may comprise up to 6 individual units.
For LTD Co's - Directors must own 80% of shares of the company.
1 year experience required as a landlord for HMO properties
Can consider above a food outlet, but is down to valuers comments.
Do not consider inherited properties as security if they have been previously lived in by relatives of the borrower
Director experience for Limited Company: - accept any applicant or director that has never previously purchased a buy-to-let property where that applicant or director currently owns a residential property with no arrears history for at least 1 year. Where the application is to purchase or remortgage - Houses in Multiple Occupation (HMOs), Multi-Unit Freehold Blocks (MUFBs), New Builds or Flats above Commercial premises, at least 1 applicant or Director must have at least 1 years’ experience of letting residential properties.
If over 10 floors, they want to see what it is before saying yes, but can consider.
Remortgage from short term finance
Remortgaging out of short term finance provided by other lenders will be subject to the length of ownership.
Less than 6 months: restricted to the amount required to repay existing facility plus 100% of documented improvement cost, subject to ownership period of at least 1 month.
Greater than 6 months: capital raising allowed over and above the sum required to redeem the short term finance, based on any enhanced value of the property.
Remortgage from a cash purchase
Remortgage when the property was purchased as a cash transaction can be considered subject to ownership period of at least 1 month and is restricted to 100% of documented improvements costs. This does not include the initial cash amount to
purchase the property.
Greater than 6 months, capital raising allowed based on the enhanced value of the property
Capital raising • For property related purposes can be considered up to a maximum LTV of 80%
• For non-property related can be considered, up to a maximum LTV of 75%
• Capital raising for payment of taxes and consolidation of debts that have not been maintained satisfactorily is not permitted
Will consider within 6 months if repaying a bridging loan or obtained from family death (probate)
before remortgage considered. All cases considered on own merits
No First Time Buyers
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Remortgages prior to 6 months are considered if clearing bridging finance like for like.
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Day 1 remortgage accepted on the following basis: -
• Lending can be based on current property value – if verified works have been carried out and evidence provided. If not, the loan will be assessed at the initial purchase price
• Maximum 75% LTV
• Standard pricing to apply
• Customer(s) to be on the voters roll for residential applications
• Not available for New-build purchases – defined as properties that are less than two years old (from the date of practical construction) which have not been lived in.
Applicants need to own the property if it is a mortgage.
Applicants without an existing residential mortgage are now acceptable subject to underwriting criteria which will include a plausibility assessment.
If property was converted from a Residential into a let property, it must have been owned for a minimum of 12 months prior to remortgage.
12 months ownership of x 1 BTL – Specialist range 2 BTL’s for 2 years.
Also: -
- Single Unit / MUB & HMO upto 6 units, Expat & Foreign Nationals - 1 BTL for 12 months
- Specialist Range - 2 BTL’s for a min of 24 months ownership
- DO NOT have to be owner occupier.
before remortgage considered. Will lend against OMV within 6 months subject to criteria.
• No minimum personal income requirements except for first time landlords
• Available for up to 6 Bed HMO's
• Available for up to 4 units on 1 title
• First Time Landlords considered for single residential investment units only. Applicants must be at least 25 years of age, able to evidence that they have owned their own home for a minimum of 12 months, and earn
in excess of £25,000 per annum. Consumer Buy-to-let not currently accepted
• Expat applicants are required to hold a UK Passport and have been resident in the UK within
the last 5 years, but there is no requirement for them to have been born in the UK.
Aldermore Can consider remortgages of previous residential properties, they will consider this as a consumer BTL.
Has a credit footprint in the UK
Pays UK tax or has declared income for UK tax purposes
Has at least one Buy to Let property in the UK
Is employed by a multi-national employer or Sovereign entity
Has written confirmation from their employer of their residential address in the foreign country and period of residency
Has a UK bank account
Provides the last two years’ SA100 and tax calculations
Ex Pat
Acceptable Areas for Expats
Foundation Homeloans will consider lending where the applicant is based in the EEA, including Iceland, Lichtenstein and Norway.
Also allowed for EU/EEA/Switzerland can be accepted but only if the offer documentation can be signed/executed in the UK.
Foundation Home Loans will not consider lending where the expatriate is resident in, or funds originate from, the following countries:
Afghanistan
Algeria
Bosnia and Herzegovina
Democratic People's Republic of Korea (DPRK)
Ecuador
Ethiopia
Guyana
Iran
Iraq
Loa PDR
Myanmar
Sri Lanka
Switzerland - can be accepted but only if the offer documentation can be signed/executed in the UK.
Syria
Trinidad and Tobago
Tunisia
Uganda
Vanuatu
Yemen
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Where the applicant is resident in a country which is both outside the EEA and not on the above exclusion list (eg Switzerland, USA, Canada, United Arab Emirates) then Foundation Homeloans will consider lending on a case by case basis.
Limited company/LLP applicants acceptable.
Minimum loan £125,000.
Minimum UK equivalent income of £50,000.
Employed applicants must work for a UK, EU, UK agency, or for a recognised and traceable company abroad.
Self-employed applicants must be professional, such as an equity partner in a law firm, professional contractor or a business owner with an internationally recognised accountant.
Self-employed applicants who only have a PO Box Address are not acceptable.
Applicants must have at least two years of UK commercial property ownership experience.
Applicants, including Directors and Shareholders of limited companies, must have a UK credit footprint, with a clean credit history for a minimum of three years.
If an applicant resides in Australia or Monaco, the property must be held in a limited company.
Applicants who live in Saudi Arabia, or who work/reside in any country on a banned or watch list, are not acceptable.
Additional requirements may apply depending on the country of residence, and these will be made clear in any offer document.
Mortgage payment must be by Direct Debit, in sterling from a UK bank.
Proof of income required (Minimum verifiable income of £25,000)
Applicants must be British passport holders and ID required
Have to be professionals living & working abroad not
retirees who have moved abroad permanently. They cannot accept Self employed applicants.
Applicants must have a completely clean credit history
Applicants must own at least one UK property (either residential or Buy to let)
Applicants must not be working or residing in a country on any banned or watch list (check with the KRBS directly). Australia based ex pats are not permitted to lend with KRBS.
The applicants must have a UK bank account and the mortgage
payment must be Direct Debit from a UK Bank
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Ex-pat standard mortgage – this is geared towards two types of borrower who want
to purchase a property in London or the South East:
• a professional applicant who is employed in a senior position by a UK, EU or US agency or by a recognised and traceable company abroad; or
• a self-employed applicant such as an equity partner in a law firm, professional contractor or a business owner with an internationally recognised accountant.
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Ex-pat non-standard mortgage – also offer an ex-pat
non-standard mortgage. This is for customers who may not fit our standard
mortgage or may not be purchasing in London or the South East but who present
compelling reasons to lend. Applications for this product will be looked at on a case-by-case basis and bespoke underwriting will be applied.
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Cannot accept HMO Ex - Pat enquiries
Up to 70% LTV - max loan of £750,000
Up to 65% LTV - max loan of £1,000,000
Any fees that may be added to the loan are excluded from the LTV calculation
Affordability
All calculations will be based on either the current reference rate published on our website, or the product
charging rate plus 2%, whichever is the greater.
The affordability will be assessed as follows:
• For individual and joint applicants and for limited liability partnerships (LLPs) with expatriate members, the
gross rental income should be equal to, or exceed, the Interest Coverage Ratio (ICR) of 140%.
• For limited company applications, the gross rental income should be equal to, or exceed, the ICR of 130%
Applicant type: Expatriate applicants and LLP’s with expatriate members 140%
Limited company with expatriate directors 130%
Single self-contained units only with no restrictive covenants in place.
The services of a managing agent must be engaged to oversee the property, and details of the agent must be provided prior to completion of the loan.
For purchase applications, proof of the source of deposit will be required in all instances.
Applications will be considered from limited companies / LLPs registered and trading in England, Wales or Scotland and whose directors /members are expatriates.
• All applicants must have held a UK bank account for a minimum of three years.
• All applicants must provide a certified copy of their current UK passport, together with three separate proof of residency documents.
• A UK credit search will be undertaken wherever possible. Applications will not be considered where there is evidence of poor credit history.
• There is no minimum income requirement, but applicants must provide details of all income.
• All employment statuses are accepted and full details must be provided as part of the application.
• We cannot accept applications that qualify as Consumer buy-to-let from expatriate applicants.
Applications will be considered for Expatriates, who must hold a current UK passport and are residing outside of the UK in one of the following countries:
Austria
Belgium
Bulgaria
Canada
Cyprus
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Kingdom of the Netherlands
Luxembourg
Malta
New Zealand
Norway
Poland
Portugal
Singapore
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
United States
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EU Nationals can be considered on the basis that: -
When they reside in the UK
They meet standard experience criteria, i.e. experience within the last two year in the UK and property investments.
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Ex-pat applications when the security is the client's previous residential property.
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Do not accept consider where the parent company ownership structure is incorporated in the Cayman and British Virgin Islands (BVI)
Minimum income is £40,000 GBP equivalent for employed and retired.
Minimum Income is £60,000 GBP equivalent for self-employed and contractors.
First time landlords are not permitted, all Expat applicants must have an existing BTL for 12 months.
HMO: Expats must already own a HMO or a MUB and we require evidence of the existing HMO/ MUB properties.
UK property management: - Must be able to demonstrate family member or management company who can oversee the
property. Provide company name & address (if a property company) or family member name, address & relationship.
Full list is available on TML's listed Ex pat criteria guide.
Up to 75% LTV applies with the exception of Australia (70% LTV)
- Applications considered for SPV’s registered in England, Wales or Scotland where one or more directors or shareholders is resident overseas as an expat.
- Non EEA landlords require a min property value of £150k
Must currently own a UK property and have at least 3 active credit records.
First time landlords acceptable but must own a UK property
Mortgage payments to be made by direct debit from a UK bank account.
Applicants must normally be UK or EU nationals and continuously resident in the UK for the past 2 years. Applications can be accepted from non-UK/EU nationals providing they have been a UK resident for the past 2 years and they have non-conditional and permanent rights to reside (i.e indefinite leave to enter/remain or right to abode)
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Can consider Tier 2 Visa's on a case by case basis.
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Tier 2 Visa - on a case by case basis,
Tier 2 Visa’s can be considered on case merit.
Subject to product loading.
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Tier 2 Visa - on a case by case basis, Tier 2 Visa’s can be considered on case merit. Subject to product loading.
EU Citizens
Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card.
Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years. Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.
Can also consider spousal visas
Applications from Foreign Nationals are acceptable, however all applicants must:
*Live and work in the UK (UK citizens working abroad are acceptable where their main residence is in the UK and they are a UK taxpayer).
*Be UK taxpayers (where income is being used in support of the application).
*Have resided in the UK for the last 3 years.
*Applicants residing in the Isle of Man and Channel Islands are not acceptable.
**Non‐UK citizens (UK & European Union (EU) Nationals and Non‐European Union Nationals) must provide evidence of a minimum employment history of 3 continuous years in the UK (where income is used in support of the application).
**Non‐European Union citizens must provide evidence confirming indefinite rights to remain in the UK and have a statutory right to work in the UK.
EU Citizens
Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card.
Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years. Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.
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Can consider Tier 2 Visa's on a case by case basis.
Accept applications from non-UK nationals who have Indefinite Leave to Remain (ILR) in the UK.
Flats - New Build/newly converted flats accepted.
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Builder gifted accepted deposits up to a maximum of 5% of the purchase price of the property.
No to new build commercial premises.
Flats - No
New build is defined as built in the last 12 months, or has not previously been occupied.
HMO and New Build Flats up to max 75%
New Build Flats max 75% LTV
Renovation/conversion max 70% LTV
New builds are defined as a property that has never been occupied or has been constructed or converted within the last 12 months.
Flats/Maisonettes - No
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Flats in blocks up to 20 storeys, with a commercial ground floor accepted
80% LTV available for buy to let new build houses and flats
S106 obligations considered
Mortgage offers valid for six months from the date of issue, if required we may extend for a further three months
New Build flats with a commercial ground floor are considered
Conversions also up to 75% LTV.
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
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.
Builder’s or Vendor’s deposit: -
Acceptable on new build purchases only providing incentive does not exceed 5% of the purchase price.
Mortgage offers valid for 6 months from data of issue and if required we may extend for a further 6 months on the same product
Max Loan size of £750,000 – including New Build properties within the M25 only
Max Loan size for New Build properties outside the M25 is £500,000
area for each
individual unit 30 sqm
40 sqm if outside of London.
30 sqm if inside of London - can consider smaller but it is by exception, property address will be needed.
Same rule applies if it is a converted studio flat.
Please note, the minimum value to be considered will be £120,000 and will need to be in a city centre location and the valuer will have to confirm demand for this type of property.
Studios at least 30 Sq.M in size.
LEASE TERM - Minimum term 60 years left on the lease on completion.
• Minimum property value of £100,000 (£200,000 in Greater London)
• No outstanding pre-emption requirement to repay a proportion of the discount
• Maximum of 3 floors above the ground floor
• Secure communal access with no balcony access arrangements
• Valuer indicating that there is evidence of a meaningful level of private ownership within the estate
• The property being of standard construction
• Private access (not via balcony)
• Good location (i.e. close to local amenities and close to transport locations).
• Evidence of good demand ( i.e. what percentage of the block is privately owned, at the very least 25%)
• No large panel/concrete constructions.
EX- Local Authority House max LTV 75% EX-Local Authority Flat/Maisonette LTV 70%
Houses - Yes
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Ex Local Authority Flats/ Maisonettes /MOD will be considered on a case-by-case basis (where the borrower is not a First time Landlord) and will also be subject to construction type, location with no balcony access (an exception may be considered for high value properties in London) and confirmation of a minimum of 75% private ownership from the local authority.
If block of flats has over 3 storeys with cladding, it will not be considered.
50-79% private/owner occupied would need to be assessed as an exception to criteria. Cannot consider if less than 50% of the flats owner occupied.
75% LTV flats, block must be 80% privately owned
Flats - 75% LTV Max - see below for types of flats considered.
Leasehold Flats with a lease term < 85 years unexpired (such cases will each be considered on their own merits).
4 storeys or less accepted
Flats/maisonettes: - NOT ACCEPTED
Flats in local authority or ex local authority owned blocks
New build flats/maisonettes
Flats with a gross external floor area less than 35m2
Flats above commercial premises
Studio flats
Freehold flats
Balcony access
No Flats/Maisonettes. Exceptions can be considered where the following apply; Block in majority private ownership, no balcony access in block, good curb appeal, standard construction.
Ex local authority flats with deck access up to 12 floors, High Rise, BTL investor led developments, properties located above or adjacent to commercial except petrol stations and hazardous industrial units including food or alcohol.
Ex-local flats considered
Ex-Local Authority Flats (England and Wales)
Will consider lending on Ex-Local Authority properties in England and Wales, subject to:
• Minimum valuation of £50,000 outside of London and the South East
• Minimum valuation of £120,000 in London and the South East
• Maximum 75% LTV
• Traditional construction only (as opposed to core criteria where non-traditional properties are allowed)
• Maximum 5 floors in block, except in London and the South East, where the maximum allowed is 10
Ex-Local Authority Flats (Scotland)
Will consider lending on Ex-Local Authority properties in Scotland, subject to the following criteria:
• Minimum valuation of £50,000
• Maximum 75% LTV
• Traditional Construction only (as opposed to Core Criteria where non-traditional properties are allowed)
• Maximum 5 floors in block
At least 50 % of properties within the block are privately owned and we require valuer commentary to satisfy us on this point.
Flats or maisonettes in blocks exceeding 10 stories are acceptable subject to mandated approval by Zephyr Homeloans.
Deck access considered.
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.
Only when the applicant / director already has rental properties in the background prior to approaching Zephyr.
CHL will not accept any unsecured credit that has been more than a status 2 in the last 24 months and will only accept one instance of status 1 in the last 12 months, but this cannot have been in the last six months.
But do have a minimum credit score which is very low.
Missed mortgage payments over 12 months ago considered.
Active unsecured credit – All accounts currently up to date (mail order and communications ignored).
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.
For commercial enquiries, up to 2 unsatisfied CCJs in the last 24 months up to a maximum value of £5,000. Allowed up to 5 CCJ's with the last 5 years will be considered subject to underwriting. Defaults considered on case by case basis.
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No bankruptcy or IVA
Secured arrears: 0 in 6 months, Status 1 in 24 months (Max. 1 instance)
Defaults: Unsatisfied max. £250 in 36 months. Satisfied max. £500 in 36 months
CCJ’s: Unsatisfied max. £250 in 36 months. Satisfied max. £500 in 36 months
CCJ's - will conisder 1 satisfied under £500 in last 3 years, all other CCJ's must have been satisfied over 3 years ago
1 commnication supplier issue may be consider if under £500 and satisfied subject to a suitable explanation.
No credit file to be, at any point within the last three years, more than two payment (>2months)
in arrears
If within the last 3 years, we are able to accept status 1 and 2, as well as any CCJs and defaults under £250.
Standard Range: No CCJs/defaults registered in the last 24 months, regardless of whether they have been satisfied. All CCJs/defaults must be satisfied and brought up to date at time of application.
Unsecured arrears - for Mail order, Utility accounts, communication contracts & credit cards.
Underwriter can consider up to 4 missed/late payments on 1 individual account or 4 missed/late payments
(4 individual accounts) across a combination of accounts where combine value is less than £500
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No missed mortgage payments in the last 24 months.
Unsecured loans and credit cards - Worst status of 2 in the last 24 months with 0 in the last 12
Other Unsecured (mail order, utility, communication contracts) - Worst status of 4 in the last 24 months
No IVA or Administration Order registered against any borrower.
No Bankruptcy Order against any borrower.
Debt Management Plans: Applicants who have entered into, or are still repaying, a debt management plan in the last 24 months are not acceptable.
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All accounts must be up to date at the time of application,
All CCJ’s and Defaults must be satisfied at the time of application
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Standard Plus Range - CCJs & Defaults: - No CCJs/Defaults registered in the last 72 months, regardless of whether they have been satisfied.
All defaults and CCJs must be satisfied irrespectiveof when they occurred.
Unsecured loan arrears: A worst status of 0 in the last 72 months.
Credit card arrears: A worst status of 0 in the last 72 months.
Mail Order, Communications & Utilities: A worst status of 4 in the last 24 months per account provided all accounts are up to date on application.
Mortgage arrears: A worst status of 0 in the last 72 months.
Ignored if registered and satisfied prior to 12 months prior to application.
Ignored if less than £300 regardless of date of registration. Must be satisfied prior to application
Unsecured arrears - max status 2 (can have multiple status 1&2) & communications disregarded.
CCJ’s - disregarded over 3 years ago
Adverse credit - (Tier 2) - Available for standard properties, HMO's & MUFBs
Unsecured arrears - not counted
CCJ's - None in last 12 months, 1 in last 12-24 months and not counted over 24 months
Defaults - None in last 12 months, 2 in last 12-24 months and not counted over 24 months
Paragon Premier will undertake a credit score in order to ascertain the acceptability of the application and will not normally consider any application where there is evidence of poor credit history, such as defaults or arrears on any loan.
Paragon Premier will not consider applications with historic or current county court judgments.
The lender reserves the right to obtain a new credit search at any time and any change in the applicants credit history could lead to the application being reviewed.
(Non-default/CCJ)
2 individual utility, communication, or mail order account defaults up to and including £200.00 each ignored (Applicable to Pepper 24 & 24 Light products downwards, but excluding Bankruptcy range products)
None in last 12 months
Total combine CCJ value of £2,500 accepted
Check product range for further information.
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Unsecured credit: -
Fixed Term - None in the last 6 months.
Revolving credit - Missed payments considered if none in the last 12 months
On Pepper 24, 18 and 12 products we will ignore 2 individual defaults (per application) up to and including £150.00 each where these defaults relate to utilities, communications or mail order providers.
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All other unsecured must be up to date in the last 6 months
Unsecured can be no more than 2 months in arrears in months 7 to 12
Unsecured arrears are ignored after 12 months i.e, month 13 onwards
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Bankruptcy Discharged > 6 years ago Max Loan Size
IVA Discharged > 6 years ago
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Debt Management Plan - None current and None in last 12 months.
We will consider applicants whose debt management plans completed or finished more than 12 months ago.
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Repossession None in the last 6 years
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Doorstep Loans/Payday Loans - None current and None in last 12 months
Any applicant who currently has a payday or doorstep loan will be declined. We will consider applicants whose payday or doorstep loan finished more than 12 months ago.
Dependent upon product plan - Tier 1 highest range and Tier 3 lowest.
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Defaults 0 in last 12 months,2 in 24 months (max £5k)
CCJ’s 0 in 12 months, 1 in 24 months (max £2.5k).
Missed Mtg/Secured Arrears 0 in 12, Max 1 in 36 months.
Unsecured arrears - Not counted but can affect customers credit score.
Tier 1 - only adverse accepted is 1 unsecured in 12 months, 2 in 36
months (worst status). Must pass credit score.
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Payday loans can be considered 0 in last 3 months. Unsecured arrears can have been in last 3 months all other adverse 0 in 3 months.
A1 credit profile on secured and unsecured lending. Will also look at the credit profile of any businesses that clients are associated with. Will take a pragmatic view of any small blemishes in their credit conduct, but any missed mortgage
payments are likely to lead to rejection
Unsecured arrears – 0 in 6 months, 1 in 24 months
Defaults – 0 in 24 months
Pay day loans – 0 in 6 years
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
CCJ's: - Maximum 1 up to £250 in the last 3 years and satisfied. None in last 12 months.
Defaults: - No defaults must have been registered within the last 24 months
Payday loans - None in last 6 years
Credit Cards: - No more than 1 month in arrears in last 24 months and no arrears in the last 6 months
Please see product guide for further details on valuation fees.
No
maximum age for Limited Company applications
Specialist Range – NO maximum age
25 years for first time landlords
Any country with a Basel AML risk score below 6 where the applicant is based
4 applicants within Ltd Company
4 Directors for Ltd Company
Where a shareholder with less than 25% shareholding or a director who can be defined as having a significant controlling role in the business we will require personal guarantees and these officers to be added to the application.
2 for individuals
In the event that the application is from a limited company, details of up to four directors/shareholders as applicants will be captured.
The application must include all directors and sufficient shareholders who own a combined total of at least 80% of the company.
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.