Buy to let

Buy to let Guide

We do not consider applications solely on a self-financing basis, but look at the overall situation, including any other mortgages that the applicant(s) may have when assessing the application.  The general maximum permitted exposure with the Society will be £500,000, 5 properties, and in total £1m, 10 properties (including any exposure with the Society).  

Assessment of overall affordability is based on ALL mortgages (both current and proposed).

Buy to let mortgages are considered on properties in mainland UK. 

The maximum LTV is 70%.  (Subject to a maximum Interest Only advance of £250,000)

The following criteria should be met:

• The application form should be fully completed and all information and evidence should be obtained in the same way as a residential mortgage application.
• The applicant(s) must have total household income of at least £20,000 pa
• The applicant(s) must own their own home (with our without a mortgage)
• Rent must exceed the interest only repayment at the Society’s SVR. (Currently 5.44%)
• Any other mortgage payments e.g. residential mortgage should be included as outgoings on the Budget Planner.
• 50% of the rental income relating to the subject property may be included as income on the Budget Planner.
• The rental income should be at least equal to 125% of the monthly interest payment.
• The security will be valued on a vacant possession basis
• The valuer will be asked to comment on the suitability of the property for rent, the rental income achievable, and the market for such rental properties in the area.
• The Society will only accept properties that are let, or are to be let on an Assured Shorthold Tenancy of between six and twelve months duration
• A statement of Assets and Liabilities to be provided.
• Six months satisfactory bank statements
• If there are other existing Buy to Let properties, to establish that they are self-financing, we will require:
  • Copies of the current Tenancy Agreements
  • Latest annual mortgage statements

• Applications will not be accepted on “New-build” flats. i.e. Any flat less than five years old or which has been previously unoccupied.