Buy-to-let lending criteria

The maximum age at the end of the term is 85.

The minimum age is 21.

The maximum number of applicants is four. Only two will be used for affordability.

An application will be considered as a consumer buy-to-let (CBTL) where the following applies:

• Applicants wish to let their current home while buying a new residential property (known as a let-to-buy).
• Applicants have themselves, or a close relative, previously lived in the property and now wish to let it.
• Applicants have inherited the property and wish to let it.

All advisers submitting a CBTL application must hold the relevant CBTL FCA permissions as well as full mortgage permissions. The application must be on an advised sale basis.

Where the customer is remortgaging their home onto a let-to-buy basis with us in a standard buy-to-let application. We need their new residential mortgage offer on the property they're buying. If the residential property is being bought with cash, we must see the memorandum of sale and full purchase details.

Applicants must not have unspent convictions or pending prosecutions for fraud or dishonesty.

• If registered within the last 3 years, maximum combined value £500. If registered over 3 years ago, defaults and unsatisfied CCJ’s of any amount and can be considered. 
• Missed payments - status 1 and 2 are acceptable, provided the commitment is up to date.
• Bankrupts who’ve been discharged for at least three years.

All deposit funds must be in the UK at the time of application. Deposits must be sourced from legally generated funds and not incur interest (i.e. increase in commitment during the mortgage).

Unacceptable sources of deposit include but not limited to

• Funded by bank/personal or business loans.
• Vendor cash deposits.
• Builders incentives (i.e. builders deposit contribution) for ltd company.

Acceptable deposit sources for personal BTL

• Gifted deposit (including equity): permitted from close relatives only including parents, siblings, children, grandparents, aunts/uncles and includes step relatives.
• Personal savings/investments: includes inheritance.
• Equity: released from property via sale or remortgage.

Acceptable deposit source for limited companies

• Directors gift: must be funded from the director’s own resources (savings, investments, or equity).
• Deed of gift is required where the property is being purchased from a director.
• Directors loan: sourced from the director’s own resources (savings, investments, or equity).
• Intercompany loan: acceptable where companies share the same ultimate beneficial ownership (same directors/ shareholders).

There is no minimum income requirement.

We accept buy-to-let mortgage applications from limited companies. Here’s our criteria. We may still be able to help you if your case doesn’t fit every requirement.

Key criteria

• A limited company must be a special purpose vehicle (SPV), hold and let residential investment property with one of these standard industrial classification (SIC) codes:
  
  • 68320: other letting and operating of own or leased real estate.
  • 68209: management of real estate on a fee or contract basis.
  • 68100: buying and selling of own real estate.
• No other SIC codes can be accepted.
• The SPV must be non-trading.
• Loan to value (LTV) up to 80%.
• No layered company structures allowed.
• Directors and company shareholders need be the same, up to a maximum of four directors. All company directors must be included on the application.    
• Partnerships or Limited liability partnerships (LLPs) cannot be considered.
• All directors of the limited company must personally guarantee the full loan amount. A floating charge won't be needed.
• The assessment of the application will include reviewing all other properties owned by the limited company and those in the personal names of the directors.

• The maximum loan is £750,000, inclusive of any capitalised fees.
• The maximum loan to value (LTV) for houses is 80%, inclusive of fees.
• The maximum LTV for flats is 80%, inclusive of fees.

The minimum loan is £30,000.

Unacceptable loan purposes include: 

• Sale and rent-back cases, distressed sales and remortgages where the original vendor still lives in the property.
• Regulated buy-to-let applications where the property is being let to a family member.
• Remortgage applications where the property has been owned for less than six months.
• Properties where the applicant is buying in their name from their limited company.
• Repayment of unsecured business loans.
• Injection of business capital.
• Speculative purposes.
• Making of gifts.

The applicant is a portfolio landlord if the application includes four or more properties. This includes limited company buy-to-lets and properties (mortgaged or not) held in the names of any of the borrowers, whether solely or jointly.

The buy-to-let portfolio must meet these criteria, including unencumbered and managed properties.

• The maximum LTV for the portfolio is 75%.
• The maximum buy-to-let portfolio size is 15 buy-to-let properties. At most, five properties can be mortgaged with us.

The rental income must show the whole portfolio is self-supporting. This includes unencumbered properties and the property to be mortgaged.

It must meet our stress rate criteria.

It must be demonstrated that the landlord:

• has grown their portfolio gradually, and any properties bought in the last 12 months haven't been purchased quickly.
• has considered the portfolio's ongoing and future management, including professional and management fees.
• has at least two years of experience in managing investment properties.
• has no more than 25% of the overall portfolio as House in Multiple Occupation (HMO) properties.

Take a look at our property criteria for residential and buy-to-let applications.

The rental income is based on your estimate and is subject to confirmation from the valuer. The valuer will assess the rental income based on a family dwelling for an unfurnished property.

Take a look at our ICR calculation criteria.

Your client can apply for a mortgage on a whole, wholly interest-only or part repayment/part interest-only basis.

We don’t need policies assigned to us for interest-only mortgages. But your client must have a lump sum at the end of the term to repay the capital they borrowed.

The main applicant (the main income earner) must be or have been, an owner-occupier of a property in the UK. The applicants must have lived in the UK for the last two years.

HM Armed Forces personnel abroad are considered residents of the UK during their deployment. In the case of foreign nationals, the applicants must have permanent rights to live in the UK and be able to evidence this. We can’t accept applicants on working visas.

Take a look at our minimum packaging guide. 

The property must be let on a single Assured Shorthold Tenancy (AST) agreement only.

• We will only accept a standard AST
• Maximum of four people on an AST.

We agree to you letting the property subject to your compliance with the following conditions:

• (a) Any tenancy existing at the date of completion or created subsequently must be: 
  
  • to a private individual or, if to more than one such individual, to all of them jointly.
  • to an individual or individuals who don’t enjoy diplomatic immunity.
  • an assured shorthold tenancy as defined in the Housing Acts.
  • for a fixed period not exceeding 12 months.
  • in respect of the whole of the property.
  • for residential use only.
  • in writing.

We do not allow HMOs, corporate lets or student lets.

The maximum term is 35 years.

The minimum term is three years.