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 80% subject to product limit (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.
• Minimum EPC rating must be ‘C’ for 80% LTV applications

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 a total earned income of at least £20,000 pa (please refer to our checklist to see how to evidence this).
• The applicant(s) should own and occupy their own home. There are limited exceptions to this subject to a referral to the BDM team on 0800 988 1561.
• 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 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.
• 3 months of satisfactory bank statements are required.
• If there are other existing Buy-to-Let properties, we will require:
  • Copies of the current Tenancy Agreements.
  • Latest annual mortgage statements.
• Applications will be accepted on new-build flats subject to valuer comments on the block in which they are located.  All applications on new-build flats are subject to referral to a senior underwriter.
• There may be occasions where the applicant's overall indebtedness is considered too high based on their financial circumstances.

Contact your BDM with any additional questions you may have.

• 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.

Contact your BDM with any additional questions you may have.

What is a portfolio landlord?
A portfolio landlord is defined as someone with 4 or more Buy-to-Let properties, irrespective of which lender(s) the properties are mortgaged with. It is the 4th and further properties that will be assessed using our updated criteria.

Why are they assessed differently?
As a lender, we recognise that, in an economic downturn, the impact on someone with multiple properties could be greater than someone with a single property. Hence we assess across the full portfolio rather than the property the mortgage is being applied for. Although at Furness we have had portfolio landlord criteria in place for several years, in Sept 2017 the Prudential Regulation Authority introduced industry-wide guidelines for lenders and as a result, we have made further updates to our criteria.   

Are the products and pricing different?
Portfolio landlords can apply for any of our standard Buy-to-Let products which are available up to 75% LTV. There is a maximum of 4 Holiday-Let properties(with a Furness Building Society Mortgage) in each portfolio.

Do I have to submit additional forms and information?
As well as providing scanned copies of documents such as tenancy agreements, all applicants will also need to complete an Assets and Liabilities statement, which you can find on our forms and resources page.

What are your portfolio landlord specific criteria?
These can be seen in the table below.