The rental income must cover at least 155% of the monthly interest part of your mortgage payment.
- We currently calculate this as 4.00% on an interest-only basis
- 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
Please note that our two-year buy-to-let products are now only available for straight like-for-like remortgages. Our five-year products are available for purchase and other remortgage applications subject to criteria.
Maximum loan: £350,000 per property
Maximum LTV: 75%, inclusive of fees
Maximum term: 25 years
Maximum number of properties
- Your client can have up to 10 buy-to-let mortgaged properties with The Nottingham, for a combined total of £1,500,000 (max £350,000 per property). We will look for the property portfolio with the Nottingham to be built up over time, where a track record of account performance can be evidenced as the portfolio size increases. Please speak to your RDM to discuss multiple BTL scenarios before submitting applications.
- Total lending with The Nottingham (including residential mortgage) cannot exceed £2,000,000.
- The applicant/s own deposit or a gift from family is acceptable
- We do not accept builders' incentives/deposits.
Buy to Let definitions
- MCOB regulated BTL (e.g. letting property to family members): we do not lend on these scenarios
- Consumer Buy to Let (CBTL): CBTL will apply to re-mortgage applicants who don’t own any other let properties and either:
- wish to let their current residence while purchasing a new residency (known as Let to Buy)
- have inherited the property and wish to let it
- have themselves, or a close relative, previously resided in the property, and now wish to let it.
- Investment Property Loans (IPL): IPL will apply to anyone either:
- purchasing a property specifically to let
- re-mortgaging an existing rental property.
You will be required to confirm to us which type of BTL mortgage you are submitting. This will be done within the Application Manager
system, by selecting the correct option.
Note: All advisers submitting a CBTL application will need to hold the relevant CBTL FCA permissions in addition to their normal mortgage permissions.
The way we assess BTL cases, and the choice of products on offer, will be the same for both CBTL and IPL.
Portfolio landlord applications
- Where the total number of mortgaged properties at the application level, including the property to be mortgaged, is four or more, the application is considered to be a Portfolio Landlord application.
- For Portfolio Landlords, 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 Portfolio Landlord:
- has at least 3 years’ experience in managing investment property(ies)
- HMO properties are no more than 25% of the portfolio
- has considered the ongoing and future management of the portfolio including professional and management fees.
- Portfolio Landlord applications must meet the following additional criteria:
| Maximum LTV for the portfolio
|| 75% LTV
|Maximum customers BTL portfolio size
|| 10 BTL properties
- The overall portfolio must be evidenced as self-supporting by applying an ICR calculation to the aggregate (including unencumbered properties and the property to be mortgages) portfolio totals. The total rental income derived from the portfolio must cover the total portfolio mortgage commitment based on the following assumptions:
|Minimum interest coverage ratio
|Assumed stressed interest rate
Minimum age: 25
Maximum age: 75 (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. 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/s must have permanent rights to reside in the UK and be able to evidence this. We do not accept applicant/s on working Visas.
- Applicants who own multiple BTL properties will be required to complete an Assets and Liabilities form.
Useful sources of information for BTL applicants
The National Landlords Association (NLA)
The Residential Landlords Association (RLA)
The Association of Residential Lettings Agents (ARLA)