Buy to let criteria

All applications are fully assessed with a we say yes tofocus on affordability, based on the applicant’s full financial circumstances and also taking into account letting costs, taxation of rental profits and their own personal income and expenditure including any other mortgages held.

We do not apply an Interest Coverage Calculation (ICR) when assessing a new Buy to Let application, although the gross anticipated rent should be at least 125% of the interest charges at the initial pay rate.

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All applications are fully assessed with a focus on affordability, based on the applicant’s full financial circumstances and also taking into account letting costs, taxation of rental profits and their own personal income and expenditure including any other mortgages held.

We do not apply an Interest Coverage Calculation (ICR) when assessing a new Buy to Let application, although the gross anticipated rent should be at least 125% of the interest charges at the initial pay rate.

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 75% (must include fees).
Interest only and Capital and Interest will be considered.
The minimum mortgage amount is £50,000 (refer for lower amounts)
The minimum valuation for Buy to let mortgages is £75,000
Please note that we do not accept applications that include Debt Consolidation for Buy To Let remortgages
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 earned income of at least £20,000 pa (please refer to our checklist to see how to evidence this)
• the applicant(s) should usually own their own home (with our without a mortgage)
• any other mortgage payments e.g. residential mortgage should be included as outgoings on the Budget Planner.
• 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 is required
• three months satisfactory bank statements are required
• if there are other existing Buy to Let properties, we will require:
o copies of the current Tenancy Agreements
o 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.
• there may be occasions where the applicant's overall indebtedness is considered too high based on their financial circumstances
For Regulated Buy To Let applications please see additional requirements below

We will consider applications on a regulated Buy to Let product specifically for letting to family members.

We will not currently consider applications from adult children (sons and/or daughters) purchasing their parents current residence and then renting it back.
Regulated Buy to Let applications are considered strictly on an affordability basis. Any rental income received will not be factored into our affordability assessment. We obtain the AST to ensure that if the property converted to a traditional buy to let the gross rent would be at least equal to 125% of the monthly interest payment at the initial pay rate).

Regulated Buy to Let applications are assessed in the same way as a standard residential mortgage. The Society stresses the mortgage repayment in order to assess the affordability of the loan in relation to the clients existing outgoings and factoring in the new Buy to Let.

The stated expenditure will be reviewed in conjunction with the bank statements and/or with statistical data, as appropriate. Applications will be declined where affordability cannot be proven on realistic expenditure.

The Society will consider applications on an Interest only or repayment basis.

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