Buy to Let and Holiday Let Information

Buy to Let Criteria Key Points

Key Criteria

We will accept up to three Buy to let mortgages and up to one Holiday Let mortgage per customer.

These Buy to let mortgages must not exceed a total value of £2m. This does not include Holiday Let mortgages and your clients residential mortgage.

  • Rent must cover mortgage payments by 145% at a rate of 5.5% p.a. on an interest only basis.
  • We accept Interest Only up to 75% LTV.
  • Applicants must have occupied their own residential property within the last 12 months. They must have been named on the mortgage/deeds of this property. Confirmation may be required.
  • The maximum aggregated borrowing for the Buy to Let portfolios must not exceed a total balance of £2,000,000.
  • A minimum income of £20,000 is required for sole applicants. For joint applicants one applicant must either earn a minimum of £20,000 or a combined joint income of £30,000 is acceptable. For holiday let loans over £250,000 the minimum income requirement is £80,000 either sole or joint.
  • A minimum income of £20,000 is required for sole applicants. For joint applicants one applicant must either earn a minimum of £20,000 or a combined joint income of £30,000 is acceptable.
  • We accept a maximum of 3 mortgaged Buy To Lets in the portfolio excluding any residential or holiday let mortgages.
  • We accept a maximum of one mortgaged Holiday Let in the portfolio.
  • Minimum age of 21 years and will need to be repaid on or before the eldest applicant's 76th birthday.

Holiday Let Criteria Key Points

  • Maximum loan up to £500,000.
  • We offer Holiday Lets at Buy to Let rates up to 75% LTV.
  • We accept a maximum of one mortgaged Holiday Let in the portfolio.
  • Properties must not be in a holiday park or have any restrictions on occupancy.
  • Minimum age of 21 and will need to be repaid on or before the eldest applicant's 76th birthday
  • In addition to our usual packaging requirements we also request a local holiday letting agency letter confirming the weekly letting rates for the property for the low, mid and high seasons. We will then take an annual average and apply 145% at 5.5%.

For example,

Annual figure £16,000 divided by 12 = monthly figure

Low season weekly rate £250
Mid-season weekly rate £575
High season weekly rate £825

Average = £550 x 30 weeks = £16,500. This amount must cover 145% of the mortgage repayment at a rate of 5.5% p.a on an interest only basis.

For further detail please take a look at our full lending criteria

*Subject to meeting lending criteria

Our Buy to Let Mortgage Benefits

You and your clients could enjoy a number of benefits with our Buy to Let mortgages whether you're looking for a variety of LTVs or competitive rates, our Buy to Let range includes:

Valuations are instructed on Day One - we instruct the property valuation as soon as the full application is submitted.

Basic Valuation - Many of our products come with a free basic valuation (please check product guide). Homebuyers and building survey also available (please see survey and valuation fees).

Free legals - We offer a service that is designed to take care of the legal work on a re-mortgage, most of our products come with free legals on a re-mortgage (see product guide)

Product Features - All of our products allow for overpayments, customers can pay 10% per year without ERC. We also have tiered ERC's on the majority of our products.

Porting - All products are portable to a new property subject to a standard full application and underwriting.


Is Buy to Let right for your clients?

Our Buy to Let products may suit a variety of your clients including:

First time landlords/those with a small portfolio. We accept first time landlords however we do not provide Buy to Let mortgages to first time buyers.

Clients seeking a property investment

Buy to Let may seem an attractive option for those looking for a one-off investment as a source of income for clients wishing to accept the risks that come with property investment.

However we are unable to offer our Buy to Let Mortgages to the following:

  • Properties outside of England and Wales.
  • First time buyers.
  • Landlords with more than 3 mortgaged Buy to Lets in the portfolio. 
  • Landlords with more than 1 Holiday Let in the portfolio. 

For a full overview of eligibility please view our lending criteria.


Consumer Buy to Let Explained

A consumer Buy to Let is a mortgage on a property where:

  • The applicant does not own other Buy to Let properties and
  • The applicant or related person has previously lived in the proposed security.

  • Please note we don’t currently offer an AIP facility for Buy-to-Let’s, please proceed straight to a full application.
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