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Buy to Let Hub

All you need to know about Buy to Let policies

Buy to Let policies and Income Coverage ratios, along with your client’s eligibility.

Eligibility

**The following below criteria applies to all application types.

The property must be in England, Scotland, Wales or Northern Ireland.

The property must be a residential property owned by the applicant(s) and not for their own use at any time.

Applicant(s) must be UK nationals, EU nationals or have indefinite leave to remain in the UK. – Please note providing one applicant is a UK national, EU national or have indefinite leave to remain the other applicant does not need to be (please also see Foreign Nationals policy in the A-Z Criteria).

Applicants must be resident in the UK at the time of application.

Applicants must be at least 18 years old at the time of application. 

Minimum term is 3 years

Maximum term is 35 years

 

Maximum lending limit:

 £3.5m across all residential and buy-to-let mortgage lending with NatWest or RBS

Maximum LTV:

75% or 65% for New Build properties

Small Landlords and Like for Like Remortgages

Small landlord definition:

Those with three or less buy-to-let or consent-to-let mortgaged properties on completion of this application, excluding limited company buy-to-lets or unencumbered properties

Eligibility and Application Types:

Must own and reside in their own UK home on completion of the BTL application (unless they are living in tied accommodation due to employment e.g. armed forces, boarding school teacher, vicar/minister, estate worker)

Small Landlord Applications: Purchase, Remortgage Like-for-Like and Remortgage with additional borrowing applications.

Portfolio Landlord Applications: Remortgage Like-for-Like ONLY

Rental Cover Calculations:

Purchase and Remortgage Additional Borrowing:

Basic Rate Tax payer:  125% @ 5.5% (4.5% for 5 year product)

Higher Rate Tax payer:  145% @ 5.5% (4.5% for 5 year product)

*letting agents costs will be deducted from rental income for assessment (this will be requested on the calculator)

Remortgage Like-for-Like:

Basic Rate Tax payer:  125% @ 4.5% (on all products)

Higher Rate Tax payer:  135% @ 4.5% (on all products)

Please use the calculator to get an indication on the available lend

**The following below criteria only applies to Small Landlords and Like-for-Like Remortgages.

Portfolio landlords and non owner-occupier / first time buyer Buy to Lets

Portfolio landlord:

Those with four or more buy-to-let or consent-to-let mortgaged properties on completion of this application, excluding limited company buy-to-lets

Eligibility and Application Types:

Portfolio Landlord Application: Purchase and Remortgage with Additional Borrowing

First-time buyer First-time Landlord / Non-owner Occupier Applications: Purchase, Remortgage Like-for-Like and Remortgage with additional borrowing (Small or Portfolio Landlords)

ICR Calculations:

135% @ 5.5% (4.5% for 5 year products)

Please note the client’s income will be used towards affordability, supplementing the total available lend, whilst factoring in commitments and residential mortgages.

Please use the calculator to get an indication on the available lend

 

**The following below criteria only applies to Portfolio Landlords & First-Time Buyer BTLs.

Packaging Requirements

For applications that pass on the small landlords and like-for-life remortgage calculator:

No income evidence or bank statements required on submission. 

Brokers are still expected to keep a record of these as they may be requested as part of a review at a later date.

For applications that pass on the portfolio landlord and first time buyer Buy to Let calculator:

Full standard packaging requirments are needed.

For more information, please view our Packaging Guide.

Valuations

Physical Valuation Required:

A Physical valuation will be required on all BTL applications

 

Rental income based on Market value:

Rental income for the application will be based on the market rental as indicated on the valuation report.

 

Valuation service:

Valuation service used to assess rental demand and rental income for all other properties being let, with the results used to validate an applicant’s portfolio.

Procuration Fees

DA Firms

45bps
gross

AR Firms

45bps
gross

Minimum

£250

Maximum

£10,000

FAQs