Buy to let and Holiday let

The minimum repayment term is 5 years. We will consider a maximum term of 40 years.

If any element of the mortgage loan is interest only a maximum term of 25 years will be considered. 

We accept residential applications from applicants who are aged 18 or over. For buy to let or holiday let applications the minimum lending age is 21. 

All residential mortgages should be repaid on or before the eldest applicant’s 85th birthday.

If any element of the mortgage loan is interest only, the mortgage will need to be repaid on or before the eldest applicant’s 70th birthday. 

For buy to let or holiday let applications we consider a mortgage term until the eldest applicant’s 85th birthday.

Where the property is leasehold, the unexpired term of the lease at the start of the mortgage loan must be a minimum of 85 years.

Please search for 'lending into retirement' for more information. 

Residential and buy to let mortgage and re-mortgage offers are valid for a 180 day period (6 months), except in the case of a new build purchase, where offers are valid for 240 days (8 months).

Capital raising is available for existing borrowers by way of further lending, Lifestyle Loan, or re-mortgage. This can help with house purchase, buy to let and further advances for home improvements, purchase of freehold and transfer of equity. 

We won’t lend on buy to lets for debt consolidation.

£5,000 is the minimum loan amount for a new residential mortgage advance.

£25,000 is the minimum loan amount for a new build, buy to let or holiday let.

We don’t lend on houses with multiple occupancy or student lets.

Residential applications

• We accept residential applications from applicants who are aged 18 or over. 
• All residential mortgages should be repaid before the eldest applicant’s 76th birthday. Underwriters will consider repayment before the eldest applicant’s 85th birthday.
• If any element of the mortgage loan is interest only, the mortgage will need to be repaid before the eldest applicant’s 70th birthday. 
• For joint borrowers, where the term extends beyond the oldest borrower’s 76th birthday, the underwriter must be satisfied that the loan is still affordable following the death of either borrower. 
   

Buy to let mortgage applications including holiday lets

• Applicants should be 21 years old or older. 
• All buy to let / holiday let mortgages should be repaid before the eldest applicant’s 85th birthday.
   

Retired applicants 

If lending is past the age of 70 or the applicant's intended retirement age (whichever comes first), the following applies:

• If retirement is more than 10 years away, and the term does not extend beyond age 75 then we will use current income for affordability purposes, as long as the customer can prove they are paying into a private pension (payslip, bank statement or pension statement accepted). 
• In all other circumstances affordability is reliant on a projected pension income. 

For joint borrowers, where the term extends beyond the oldest borrower’s 76th birthday, the underwriter must be satisfied that the loan is still affordable following the death of either borrower. 

For more, search for lending into retirement.

Overpayments are available on all non-flexible residential, buy to let and holiday let mortgages. 

The overpayment allowance is 10% of the outstanding balance as at January 1st every calendar year. 

Overpayments can be made regularly or as occasional lump sums.

Overpayments received above the annual allowance may incur an early repayment charge.

We consider non-regulated holiday let applications on an advised basis. 

We will accept applications from applicants who do not currently own and live in their own home.

Applicants: 

• Should be 21 years old or older
• Should have no more than 2 mortgaged holiday lets, whether in sole or joint names including the current application. 

There is no minimum income requirement.

The maximum LTV for a holiday let mortgage is 75% with the minimum property value and purchase price of £50,000 and a minimum loan size at £25,000.

For different lending scenarios, we will require as rental coverage:

If the application is a £4£ re-mortgage on a property purchased on a holiday lets basis before January 2017, we will require 125% @ 8.10% as rental coverage. 
If the application is a £4£ re-mortgage on a property purchased on a holiday lets basis after January 2017, we will require 145% @ 8.10% as rental coverage.

Rental income is calculated using an average of the projected low, mid and high season weekly rental yields.

This is usually multiplied by an assumed occupancy level of 30 weeks and divided by 12 months. This is then applied to the rental coverage calculation. 

The calculation is £15,000 / 12 months = £1,250 monthly rental. £1,250 / 1.45 = £862.07 / 0.0810 = £10,642.84. £10,449.33 x 12 gives a maximum lend of £127,714

For example

High season £700, Mid season - £500, Low season - £300,  Season Average = £500
Multiplied by 30 weeks ÷ 12mths = £1,250
Rental coverage calculation (RCC) is £1,250 ÷ 1.45 = £862.07
RCC divided by current stress rate is £862.07 ÷ 0.0810 = £10,642.84
RCC multiplied by 12 months is £10,642.84 x 12 = £127,714
Maximum lend value = £127,714
Applicants can stay in the property for up to 2 months per annum.

We will consider consumer buy to let (CBTL) applicants when:

• The applicant does not own other rental properties; and
• The applicant or related person has previously lived in the property or the applicant has inherited the property or the property has been received as a gift.

We don’t accept new applications for regulated buy to let mortgages. We do service existing accounts.

We consider non-regulated buy to let mortgage applications on an advised basis. 

Properties must have an energy performance certificate rating of E or above.  We will accept applications from applicants who do not currently own and live in their own home.

Applicants 

• Should be 21 years old or older and 
• Collectively own not more than 3 mortgaged buy to lets. 

We consider Non-EEA applicants.

There is no minimum income requirement.

The maximum total borrowing must not exceed £2m including our lending. This should include any mortgages the applicant/s is included on jointly. This can exclude any residential and/or holiday let mortgages.

The maximum LTV for a buy to let mortgage is 75% with the minimum property value and purchase price of £50,000 and a minimum loan size of £25,000.

Interest Only applications are acceptable for buy to let up to 75% LTV. 

Standard applications:

For new purchases, we will require 145% @ 5.50% as rental coverage.

For different lending scenarios, we will require as rental coverage:

If the application is a £4£ re-mortgage on a property purchased on a BTL basis before January 2017, we will require 125% @ 5.50% as rental coverage*.
If the application is a £4£ re-mortgage on a property purchased on a BTL basis after January 2017, we will require 145% @ 5.50% as rental coverage*.
If the application is a re-mortgage with additional borrowing on a property purchased on a BTL basis, we will require 145% @ 5.50% as rental coverage*.

*This is for 5-year fixed products. For 2-year fixed products we will require 7.65% as rental coverage.

Consumer Buy to Let 

We accept consumer buy to let applications.
Note: The Society does not currently lend for regulated buy to let mortgage loans but continues to service existing accounts.

Lettings must be Assured Shorthold Tenancy Agreements (ASTA, England) / Written Statement of Standard Occupation Contract (WSSOC, Wales) with no more than 12 months remaining at application. Where a tenant (England) / contract holder (Wales) is continuing tenancy beyond the initial ASTA/WSSOC, a new rolling contract is acceptable. This will be verified by the solicitor in line with our mortgage conditions. All borrowers must be named on the tenancy agreement/Written Statement of Standard Occupation Contract. 

We won’t lend on third party or sub lettings, this includes company lets and local authorities.

Gifted Equity
For any purchases using gifted equity, please contact your local BDM before submitting your case.