A summary of our key lending criteria is set out below. For full information, please see our Lending guidelines and submission requirements.
|Maximum LTV||Loan amount|
Any fees that may be added to the loan are excluded from the LTV calculations.
*Varied for some products, see product features
Maximum aggregate borrowing
A lending limit of £1,000,000 will apply and each applicant must own no more than three mortgaged residential investment properties, in both personal name or corporate entity, regardless of lender, including any proposed application.
Applications will be considered for a maximum of two individuals in their personal names. No limited company applications.
We will not consider applications where the applicant is purchasing a property from an associated limited company.
|At application||21 years|
|Maturity of loan||80 years|
Applicant(s) should have a minimum combined gross annual income of £25,000 per annum.
All income must be evidenced and can include:
- gross employment income
- taxable self-employed income
Income from renting property, state benefits, state pensions and investments will not be considered, but may be taken into account when calculating the tax band applicable to the applicant.
The gross rental income from the property should equal or exceed the Interest Coverage Ratio as determined by the tax band applicable to an applicant’s income. The tax band applicable to the applicant with the highest income will be used.
The tax band and ICR levels are as follows:-
|Applicant type||Applicant ICR|
|Basic rate tax payer (20%)||125%|
|Higher rate tax payers (40%)||140%|
|Additional rate tax payers (45%)||140%|
To cater for the PRA affordability regulation, we’ve made some changes to our mortgage application system. We’ve kept the changes to a minimum, but we will now require a property schedule to be completed as part of the online application in every case (a copy of this is available on our literature page for your information). We will also need to ask for more information about your customer’s income to enable us to apply the appropriate tax band and ICR to the affordability assessment.
The future affordability assessment will be based on our current understanding of interest rates going forward and rental inflation. We must be satisfied that the applicant(s) are able to withstand increases in mortgage interest rates, cover rental voids and be able to afford the mortgage now and after any fixed/discounted period expires.