1. Rental income
  2. Maximum LTV and term 
  3. Applicant details
  4. Age of applicant/s
  5. The buy to let property
  6. The Let to buy property
  7. Applicant details
  8. Repayment methods
  9. Higher lending charge
  10. Further advances
  11. 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) + 4.50% on an interest-only basis.The rental income is based on your estimate, subject to confirmation from the valuer.  

2. Maximum LTV and term

  • The maximum LTV is 75% LTV.
  • The maximum term is 25 years.
  • Where the mortgage term takes the customer past normal retirement age, we will need details of their anticipated retirement income.

3. Applicant details 

  • The applicant must currently own and occupy their own property in the UK
  • The applicant must have resided in the UK for the last 2 years and have permanent right to reside
  • The annual income for the main earner has to be £30,000 (we do not assess joint income). 
  • For employed applicants we will assess basic salary plus 25% of any overtime/bonus/commission (as long as these are paid monthly).
  • For self-employed applicants we will need to be able to obtain 3 years trading figures from the accountant.  We will assess the latest net profit figure unless it's a Ltd company and then we assess the latest salary plus dividend payment.
  • Applicants who own multiple BTL properties will be required to complete an Assets and Liabilities form (click here to download a PDF copy of this). 

4. Age of applicant/s

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

5. The buy to let property (no flats accepted) 

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). Note: it will be valued as a single family dwelling for rental purposes.

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 £250,000 per property), providing total lending (including residential mortgage) does not exceed £2m with The Nottingham.

The property must be in England or Wales with no more than 4 bedrooms and 3 floors.

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
  • Sale and rent back scenarios.

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

6. Let to buy

  • 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.

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, ID for each applicant and a completed Assets and liabilities form (click here to download a PDF copy of this).      

 

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