1. Rental income
  2. Maximum LTV
  3. Age
  4. The buy to let property
  5. Applicant details
  6. Mortage term
  7. Repayment methods
  8. Higher lending charge
  9. Further advances
  10. Supporting documents

1. Rental income

The amount earned in rental income must cover at least 125% of the monthly interest part of your mortgage payment. The interest rate we use to do this calculation is Bank of England Base Rate (BBR) + 5.00% on an interest-only basis.The rental income is based on your estimate, subject to confirmation from the valuer.  

2. Maximum LTV

The maximum LTV is 70% LTV.

3. Age 

  • Minimum age 25 
  • Maximum age 70 (at end of the mortgage term)

4. The buy to let property 

The property must be let on an Assured Shorthold Tenancy agreement, renewable at no more than 12 monthly intervals (maximum of 4 people on the agreement).

The Property must be valued at more than £70,000.

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 £200,000 per property), providing total lending (including residential mortgage) does not exceed £2m.

The property must be in England or Wales with no more than 4 bedrooms.

We will not lend on the following properties:

  • Commercial properties
  • Flats and apartments (including ex-local authority)
  • Remortgaged properties that have been owned for less than six months at the time of application
  • If the property is not in a lettable condition
  • Properties converted into bedsits with shared kitchen and bathroom facilities
  • Where the applicant is buying in their personal name from their own limited company

 NOTE:  Limited company BTL's may be considered on a commercial mortgage basis.

5. Applicant details 

  • The applicant must own and occupy their own property in the UK
  • The annual income for the main earner has to be £30,000 gross per annum

6. Mortgage term  

Where the mortgage term takes the customer past normal retirement age, we will need details of their anticipated retirement income.

7. 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.

8. Higher lending charge

There is no higher lending charge on any buy to let products.

9. Further advances 

Currently no further advances are available for buy to let mortgages.

10. Supporting documents  

With each application, please provide one full months bank statement, the latest payslip and/or P60 or latest accounts and ID for each applicant.     

 

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