• Buy to let lending criteria

    We are not considering applications outside of this criteria.
    Click below for full details of our criteria.

  • The Application

    Rental income

    • The rental income must cover at least 125% of the monthly interest part of your mortgage payment
      • We currently calculate this as Bank of England Base Rate (BBR) + 4.00% on an interest-only basis
      • The rental income is based on your estimate, subject to confirmation from the valuer

    Maximum loan

    • £250,000 per property

    Maximum LTV

    • 75%, inclusive of fees

    Maximum term

    • 25 years

    Maximum number of properties

    • Your client can apply for up to 10 buy to let properties with The Nottingham up to a combined total of £1,500,000 (max £250,000 per property)
      • Total lending with The Nottingham (including residential mortgage) cannot exceed £2m
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  • The Applicant(s)

    Minimum age

    • 25

    Maximum age

    • 70 (at end of the mortgage term)

    Number of applicants

    • Maximum 4

    Residency and property ownership

    • The applicant(s) must currently own and occupy their own property in the UK
    • The applicant(s) must have resided in the UK for the past 2 years and have permanent right to reside
    • Applicants who own multiple BTL properties will be required to complete an Assets and Liabilities form
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  • Income

    Employed
    • The annual income for the main earner must be at least £30,000, or if below this figure, we will accept a combined income for joint applicants of £50,000. A maximum of two borrowers’ incomes can be assessed.
    • We will assess basic pensionable salary plus 50% of any overtime/bonus/commission
    • These must be paid monthly/quarterly and evidenced on the pay slips
    • We will not assess other unearned income

    Self-employed
    • We require 3 years of trading figures and will assess the latest net profit figure
    • For a limited company, we assess the latest salary plus dividend payment.
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  • The Buy to Let property

    Acceptable properties

    • The property must be valued at more than £70,000
    • The property must be in England or Wales
    • Maximum 4 bedrooms
    • Maximum 2 storey
    • The property must be let on an Assured Shorthold Tenancy (AST) renewable at no more than 12 monthly intervals and no less than 6 monthly intervals
    • All tenants must be named on the one AST
    • Maximum 4 tenants
    • The property will be valued as a single family dwelling for rental purposes
    • We do not allow sub-letting (eg, the applicant lets the property to the local authority who in turn offers the property for social housing)

    Unacceptable properties

    • Commercial properties
    • Flats, maisonettes and apartments
      • Including ex-local authority
    • Remortgaged properties that have been owned for less than six months at the time of application
    • Purchases – properties that the vendor has owned for less than 6 months (i.e. sub sales and back to back transactions).
    • Properties that are not in a lettable condition
    • Properties converted into bedsits with shared kitchen and bathroom facilities
    • Properties where the applicant is buying in their personal name from their own limited company
    • Sale and rent back scenarios and distressed sales
      • Including remortgages where the original vendor is currently residing in the property

    Note

    • Limited company BTLs may be considered on a commercial mortgage basis
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  • The Let to Buy property

    • If your client is remortgaging their current residential home onto a BTL basis with us, we will need to see a copy of their new residential mortgage offer on the property they are buying
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  • Repayment methods

    • Your client can apply for a mortgage on a wholly repayment, wholly interest-only or part repayment/part interest-only basis
    • We do not need policies to be assigned to us for interest-only mortgages but it is your client's responsibility to ensure they have a lump sum large enough at the end of the term to repay the capital they have borrowed
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  • Higher lending charge

    • There is no higher lending charge on any buy to let products
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  • Further advances

    • Currently no further advances are available for buy to let mortgages
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  • Supporting documents

    • With each application, please provide certified photocopies of supporting documentation, not originals 
      • One full month’s bank statement
      • The latest payslip and/or P60 or latest accounts
      • ID for each applicant
        • UK or EC Passport
        • Full UK or EC driving licence (not a Provisional)
        • New style National Insurance card
        • Armed Forces ID card/Police Warrant card
        • If none of above we will accept a credit/cheque guarantee card 
      • A completed Assets and Liabilities form
      • click here to download a PDF copy of this
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