The maximum number of applicants is four, of whom only two will be used for affordability purposes.
The minimum age is 25.
The maximum age is 85.
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 resided in the UK for the last two years.
HM Armed Forces personnel who have been temporarily stationed abroad are deemed to have been resident in the UK during their period of overseas deployment. In the case of foreign nationals, the applicants must have permanent rights to reside in the UK and be able to evidence this. We do not accept applicants on working visas.
For standard buy-to-let applications, the applicant's own deposit or gift from an immediate family member is acceptable (providing the person making the gift is not occupying the property).
We do not accept builder’s incentives, or personal loans as a source of deposit. Builder’s incentives must be treated as a reduction in the purchase price.
Applicants must not have unspent convictions or pending prosecutions for fraud or dishonesty.
The minimum loan is £30,000.
The maximum loan is £750,000.
For loans over £500,000, we will ask to see a copy of the AST agreement and Selective license where applicable.
Total lending with Nottingham Building Society cannot exceed £1,500,000. Refer to portfolio section for more details. Please speak with your BDM to discuss multiple buy-to-let scenarios before submitting applications.
The maximum LTV for houses is 75%. The maximum LTV is inclusive of fees.
The maximum LTV for flats is 75%. The maximum LTV is inclusive of fees.
The minimum term is three years.
The maximum term is 35 years.
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.
Sale of mortgaged property is an acceptable repayment strategy.
Unacceptable loan purposes include:
The rental income must cover at least 145% of the monthly interest part of your mortgage payment. The mortgage payment is currently calculated at an interest only basis at:
The rental income is based on your estimate, subject to confirmation from the valuer. The valuer will assess the rental income based on a family dwelling for an unfurnished property.
There is no minimum income requirement.
The property must:
Property to be let as a holiday let is not accepted on buy-to-let products. Please refer to our commercial lending team for more details.
Properties can be clad in:
Acceptable roofs include:
Houses fitted with solar panels are acceptable, provided that:
For remortgage applications on houses with solar panels fitted under a lease agreement, please note that our ‘free legal service’ is not available.
Where a property is in a neighbourhood that is predominantly HMO licensed properties, we advise applicants/advisers to check with the relevant local authority whether the property is likely to require an HMO license prior to submitting an application.
Where the total number of properties (including limited company buy-to-lets) at the application level, including the property to be mortgaged is four or more, the applicant is considered to be a portfolio landlord.
Properties held in the names of any of the borrowers, whether solely or jointly, should be included in the portfolio.
The following additional criteria will be applied to the overall buy-to-let portfolio, including unencumbered properties and properties to be managed.
The maximum LTV for the portfolio is 75%.
The maximum buy-to-let portfolio size is 15 buy-to-let properties. No more than five properties or 50% of the portfolio can be mortgaged with The Nottingham, whichever is smaller.
The overall portfolio must be evidenced as self-supporting by the rental income across the whole portfolio to (including unencumbered properties and the property to be mortgages) to meet the following income coverage ratio calculation:
A fully completed assets and liabilities form must be provided, which includes details of their background portfolio and business plan. The business plan must show that the landlord:
Personal guarantees for the full loan amount will be required for all directors of the limited company; a floating charge will not be required. The assessment of the application will include reviewing all other properties owned by the limited company.
Consumer buy-to-let (CBTL) rules will apply to remortgage applicants who don’t own any other let properties and either:
All advisers submitting a CBTL application will need to hold the relevant CBTL FCA permissions in addition to their normal mortgage permissions, and must be on an advised sale basis.
The way we assess buy-to-let applications and the choice of products on offer will be the same for both CBTL and IPL.
For standard buy-to-let applications, if your client is remortgaging their current residential home onto a let-to-buy basis with us, we will need to see a copy of their new residential mortgage offer on the property they are buying. If the residential property is being purchased with cash, we will require to see the memorandum of sale and will require full details of the purchase.
We are able to offer further advances to customers with standard Buy-to-let mortgages – please see the further advances page for more details.
Currently we are unable to offer further advances on Limited Company Buy-to-let mortgages.
For each application we require:
We cannot use the same document to check the applicants ID and their address.
If you cannot provide any of the above documents please contact the intermediary support team on 0344 481 2010 and press option 2 to discuss further options.