Buy to Let Criteria
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Applicants
Age
First time buyers / First time landlords
Buy to Let loans are not available to first time buyers. A first time buyer is defined as an applicant that has never owned a property.
First Time Landlords are acceptable.
All applicants must either own or have previously owned a property.
Address history
Number of applicants
Residency status
Applicants must currently be resident in the UK and have permanent leave to remain.
For foreign nationals (excluding Republic of Ireland) each applicant must have been granted indefinite leave to remain or right of abode to live and work in the UK or settled/pre-settled status to live and work in the UK. We will require one of the following documents as evidence:
- Valid Passport containing Indefinite Stamp
- Home Office letter with no expiration date
- Residence Permit showing Indefinite Leave to Remain
- Manual share code check showing Settled or Pre-Settled status – more information can be found here
In addition we require evidence of two years' residency history in the UK.
Applicants must not hold any level of diplomatic immunity.
Credit check
Acceptable credit history
We will consider applications from applicants with previous CCJs, defaults or arrears, provided they do not exceed the limits in the Credit history matrix.
Credit history matrix
Standard acceptable limits | |
Repossessions | Not acceptable |
Bankruptcy | Acceptable if discharged for at least 6 years |
IVA | Acceptable if completed for at least 6 years |
CCJs in last 6 months |
None allowed |
CCJs over 6 months up to 3 years |
If the combined total value of CCJs is less than £250 satisfied or not |
CCJs over 3 years old |
Considered on an individual basis |
Defaults in last 3 years
|
If the combined total value of defaults is less than £250 satisfied |
Defaults over 3 years
|
If the combined total value of defaults is less than £1,500 satisfied or not, may be considered on an individual basis |
Defaults in last 3 years
|
If the combined total value of defaults is less than £250 satisfied or not |
Defaults over 3 years old
|
If the combined total value of defaults is less than £1,500 satisfied or not, may be considered on an individual basis |
Arrears in last year on unsecured debt | 1 month's arrears are allowed |
Arrears in last 3 years on secured debt |
1 month's arrears are allowed |
Identification and verification
Two forms of identification are required for each applicant - please see Identification and verification - acceptable documents
All documents used for verification must be originals or certified copies of documents that were originally printed at source and posted to the address of the applicant(s). Copies printed from the internet are not acceptable.
If you have examined the original document, you may certify the copy.
If you have not examined the original document, copies of original documents can only be certified by one of the following:
- Legal professional (solicitor registered in England and Wales, Northern Ireland or Scotland, barrister registered in England and Wales, Northern Ireland or Scotland or notary public registered in any country)
- Qualified accountant (registered with ICAEW, ICAS, CAI, ACCA, AAT, CIPFA or CIMA)
- Public sector official (serving officer of the Armed Services, serving police officer, teacher in current employment)
- Medical professional (doctor registered with the General Medical Council, dentist registered with the relevant national professional body)
- Post Office official (must include Post Office stamp or Post Office certificate)
- Embassy official (an embassy, consulate or high commission officer in the country of issue of the relevant document)
- Other (local government councillor, Member of Parliament, bank manager, building society manager or minister of religion).
Copies of original documents should have been certified within the last 12 months using the following words: ‘I confirm that I have seen the original document’.
The person certifying should be in current employment, but we will also accept certification from a person who has retired (unless the list above specifically indicates that the person should still be serving), provided they still hold the qualification (and are a member of the relevant institute).
The person certifying must not be related to you in any way e.g. spouse, partner, sibling, parent, child or in-law, and they must not be named as a joint account holder/borrower on your mortgage. You cannot certify your own identification.
Photographs of Physical Documentation
- Photographs of Physical Documentation for identification and verification can only be accepted by Society intermediaries and intermediaries admin.
- They must be in a PDF or TIF file format, with a maximum file size of 4MB. We do not accept JPEG files.
- CamScanner photo proofs are acceptable.
- If the proof is longer than one page they must be uploaded in one go on our Document Upload Facility, or send on one email using our secure email service.
Photo proofs must be certified by the intermediary/intermediary admin only, with direct access to the physical document. Standard security checks must be completed of physical documentation. Photo proofs must not be accepted from customers.
Identification and verification - acceptable documents
List A - Confirmation of identity (must show name and signature)
- Passport (UK or foreign) – current, valid and full
- Valid (UK or EEA) photocard driving licence (full or provisional)
- EEA member state identity card
- Full old style paper driving licence (UK) – current, signed
- DWP pension entitlement letter – valid for the current year
List B - Confirmation of address (must show name and address)
- Full or provisional UK photocard or old style paper driving licence – current, signed
- Bank/building society statement – less than 3 months old and not printed off the internet. Those issued by Coventry Building Society are not acceptable
- House insurance certificate – valid for the current year
- Council/local authority tax bill – less than 12 months old and valid for the current year
- Utility bills (i.e. gas, electricity, water) or cable/satellite/phone bill (excluding mobile phones) – less than 3 months old and not printed off the internet
Please note, these lists are not exhaustive. Please contact the Intermediary Development Team on 0800 121 7788 (selecting option 2) for further clarification.
Employment and income
Minimum income
No minimum income is required.
Affordability is based on the applicable ICR calculation, therefore we do not require applicants to be in receipt of any earned income. See Rental Criteria section for more information.
Proof of income
Type of employment |
Proof of income |
---|---|
Employed (including Limited Liability Partnerships paid via PAYE, Zero Hour Contracts) |
|
Contracted Personnel (including zero hour contracts) |
|
Self Employed - Sole Trader, Partnerships (including Limited Liability Partnerships) and Sub-contractors |
Latest financial year should be no older than 12 months at the date of application. The documentation may show the latest financial year up to 18 months old at the date of application when supported with the latest three months' personal bank statements. |
Directors with less than 20% share in the Company |
|
Directors with 20% or more share in the Company |
|
Pension Income
|
|
Rental income |
The latest financial year shown on the documentation must be no older than 12 months as at the date of application. Where the proof of income is outside of this requirement, the documentation may show a latest financial year up to a maximum of 18 months old as at the date of application, if supported with the latest three months bank statements showing income received. |
Approved accountancy bodies
Accountant's certificates should be prepared by an Associate or Fellow of an approved accountancy body:
- Institute of Chartered Accountants (ICA)
- Association of Chartered Certified Accountants (ACCA)
- Chartered Institute of Management Accountants (CIMA)
- Institute of Financial Accountants (IFA)
- Association of Authorised Public Accountants (APA)
- Chartered Institute of Public Finance & Accountancy (CIPFA)
- Chartered Institute of Taxation (CIOT)
- Association of International Accountants (AIA)
- Association of Accounting Technicians (AAT)
Rental criteria
Rental income
The minimum rental income required from the property is established using the relevant Interest Coverage Ratio (ICR), based on the Society's applicable reference rate.
Rental income is assessed using the figure provided in the valuation report, based on the property being let on a single unfurnished AST agreement, to a sole occupant/single family or for up to four individuals on a single unfurnished AST agreement where the property is suitable for a single family unit occupancy.
Rental income (Interest Coverage Ratio (ICR) and Reference Rates)
Product | Customer Type | |||
New (inc. additional borrowing) | Porting/TOE (change)^ |
Porting/TOE (no change)^^ |
Remortgage (no additional borrowing) |
|
Reference rate | ||||
2 Yr BBR Tracker | The higher of 6.5% or product pay rate +2.0% | The higher of 5.0% or product pay rate +0% | ||
Flexx for Term | The higher of 6.5% or product pay rate +2.0% | The higher of 5.0% or product pay rate +0% | ||
2 Yr Fixed | The higher of 6.5% or product pay rate +2.0% | The higher of 5.0% or product pay rate +0% | ||
3 Yr Fixed | The higher of 6.5% or product pay rate +2.0% | The higher of 5.0% or product pay rate +0% | ||
5+ yr Fixed | The higher of 4.75%** or product pay rate +0% | |||
All Portfolio Landlords | The whole portfolio will need to pass at 6% |
^ Existing customers Porting/ToE with additional borrowing. LTV & or loan amount are increasing.
^^ Existing customers Porting/ToE with no additional borrowing. LTV & or loan amount are not increasing and the ICR is no lower than the most recent ICR assessment.
If your client is a Portfolio Landlord please see 'Portfolio landlord criteria'.
ICR requirements for BTL property to be mortgaged to us
For all applicants: if all applicants declare their individual income is less than £49,000 each year (£42,500 if resident in Scotland), including all gross income, total gross monthly rental income on this application and all other investments. And they declare themselves to be lower rate taxpayers*, the minimum rental income required is 125% of your client's monthly mortgage interest payment on a reference rate of 6.5%** or product rate +2%, whichever is higher.
For any applicant: if any applicant declares their individual income is £49,000 or more (£42,500 or more if resident in Scotland), including all gross income, total gross monthly rental income on this application and all other investments. And declare themselves to be a higher rate tax payer* the minimum rental income required is 145% of your client's monthly mortgage interest payment on a reference rate of 6.5%**, or product rate of +2% depending on which is highest.
* Lower rate tax payers are: non or basic rate tax payers (basic/starter/intermediate rate if resident in Scotland). Higher rate tax payers are: higher or additional rate tax payers (higher/top rate if resident in Scotland)
** Where the total loan has 5 years or more remaining on a Fixed rate product at completion, the 5 years + Fixed rate reference rate can be applied.
*** Or for remortgage customers with no additional borrowing it is the higher of 5% or product pay rate + 0%, or where they are taking a 5 year + fixed rate product the higher of 4.75% or product pay rate +0%.
Tenancy agreements and occupancy
The property must be let on a single Assured Shorthold Tenancy (AST) agreement (England) Private Tenancy (PT) agreements (Northern Ireland), Occupation Contract (OC) – Standard contract (Wales) or a Private Residential Tenancy (PRT) agreement (Scotland) for a minimum term of 6 months.
In England, the maximum term for a tenancy agreement is up to 36 months; where the tenancy agreement is between 12 and 36 months a Department for Levelling Up, Housing and Communities (DLUHC) modelled tenancy agreement must be used.
In Northern Ireland, the maximum term for a tenancy agreement is 12 months, and in Scotland and Wales, there is no maximum tenancy term/contract term.
The property must be let to either a:
- sole occupant
- single family unit
- maximum of four tenants
- corporate body*
* Where the property is let to a corporate body the maximum term of the tenancy agreement between the corporate body and the occupier(s) is 36 months (England) or 12 months (Northern Ireland). In Scotland and Wales, there is no maximum tenancy/contract term. Where the property is in England and the term of the tenancy agreement between the corporate body and the occupier(s) exceeds 12 months, a Department for Levelling Up, Housing and Communities (DLUHC) modelled tenancy agreement must be used.
Tenancies for foreign registered Corporate Bodies (outside the UK) are not acceptable.
* A Corporate Body is any one of the following:
a. a business
i. constituted as a company under Companies Act legislation or
ii. a limited liability partnership;
and in each case registered with Companies House in the UK;
b. a partnership established under a partnership deed in England & Wales, Scotland or Northern Ireland;
c. a Crown body, central government department, devolved government body of any UK nation or region, local government authority or any publicly funded body established by legislation;
d. a housing association or not-for-profit business providing properties for rent to residential tenants;
e. an educational establishment including any university, higher or further education body, private or local authority funded school, academic trust or not-for-profit educational company;
f. a charitable body registered with the Charity Commission for England & Wales, the Office of the Scottish Charity Regulator, or the Charity Commission for Northern Ireland
Licenced HMO Properties
Find out more
Properties subjected to a Mandatory HMO licence are not acceptable (except in Scotland, as the licensing rules are different and apply to properties with more than two tenants.)
Properties subject to an Additional HMO licence are acceptable subject to a maximum of four tenants on one relevant tenancy agreement.
Portfolio landlord criteria
Find out more
A portfolio landlord is/are clients with four or more Buy to Let mortgaged properties, either together or separately, in total.
- The maximum number of rental properties a household can have mortgaged with the Coventry Building Society Group is five.
- The maximum number of Buy to Let mortgages with all lenders (including the Coventry BS Group) is ten per household.
Applicants must have a minimum ICR of 145% for the whole portfolio using the applicable reference rate irrespective of product types across all properties within the portfolio - the calculation should also include any unencumbered properties.
No individual property within the portfolio should have an ICR of less than 100%. Where there is a property not currently tenanted (e.g. due to a void period), the ICR must be calculated based upon the estimated rent (from applicant declaration, providing the rental void period has been less than two months).
Where the rental void period has been two months or more an explanation should be obtained from the applicant.
We assess all the properties in the portfolio in all cases. This means that you must provide us with information that includes the value of each mortgage, monthly mortgage repayments, monthly rental amounts and estimated property values. You’ll also need to give us full details of any unencumbered BTL properties.
There should be a maximum LTV of 65% across the whole portfolio. This calculation will include properties that are unencumbered and the property they’re applying for.
No single property should be below an ICR of 100% (based on applicable reference rate).
Portfolio landlords must have acquired their first BTL property more than 24 months before the current application. No more than three properties (prior to the current application) should have been acquired within the last 12 months.
The dedicated BTL portfolio underwriting team will also review the portfolio to consider geographical exposure and property management risk. For example the number of properties in the same block of flats or street, and how properties are managed.
Property
Maximum number of properties and aggregate/total loan amount
Any totals or limits refer to the Coventry Building Society Group, not per company.
The maximum number of rental properties a household can have in mortgage with us is five in total.
The maximum number of rental properties a household can have in mortgage with all lenders is ten.
The aggregate loan limit on all rental properties in mortgage to us is £2,000,000
Multiple occupancy properties
Properties with more than one kitchen or designed or converted for multiple occupancy are not acceptable.
For more information see the HMO and Licenced HMO Properties section
Property location
Tenure
Freehold
Freehold (also known as Feuhold, heritable or absolute ownership) tenure is acceptable for houses, bungalows and cottages in England, Wales and Scotland.
Freehold (including the previous Feuhold and Heritable Security Tenures) is the only acceptable tenure for properties in Scotland.
Leasehold
Leasehold tenure is acceptable for houses, bungalows and cottages in England and Wales.
Leasehold is the only acceptable tenure for flats and maisonettes in England and Wales.
Leasehold tenure is acceptable provided:
- No sub-leases have been created
- All of the properties within the block have a leasehold title
- The unexpired leasehold term must be at least 70 years at completion
Construction
Properties must be built of brick or stone with a tile or slate roof. For flats, we will also accept a flat mineral felt roof. The mortgage valuation will be used to confirm the suitability of the property.
Construction of brickwork
Single skin brickwork is only acceptable for garages and porches provided they are single storey, or a small proportion of the habitable area subject to valuer’s guidance.
Steel framed properties
We will consider steel framed properties provided that they were built on or after 1 January 1990. The cladding must be predominantly (67%) either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However, areas of less than 33% of the total external wall area formed in these materials may be considered on their own merits provided that the remainder of the walls are constructed of an acceptable material.
Timber framed properties
Timber framed properties built after 1990 can have up to a maximum of four storeys considered.
- Houses, Cottages and Bungalows
Timber framed properties built after 1945. Cladding must be predominantly (67%) of either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However areas of less than 33% of the total external wall area formed in these materials can be considered on their own merits if the remainder of the walls are constructed of an acceptable material.
- Flats and Maisonettes
Timber framed construction built pre 1995 up to two storeys maximum and post 1995 up to four storeys maximum. The outer skin must be predominantly (67%) either brick, concrete block or stone block at all levels.
Please note, the information above outlines our general construction criteria. If you have a specific query, please contact our Intermediary Development Team on 0800 121 7788 (selecting option 2).
Solar power panels
Applications where solar power panels are installed on the property being purchased, or remortgaged, are acceptable, subject to the valuer confirming the property is suitable security, and where the solar panels have a lease the acting conveyancer confirms that the lease is acceptable.
Energy performance certificates
BTL properties in England, Wales and Scotland are required to have an Energy Performance Certificate (EPC) rating of ‘E’ or above, unless they are exempt from the regulation.
Where the Valuer states that the property has an EPC rating of F or G a full retention is to be applied until the property has been brought up to a minimum E standard, or they are exempt from the regulation.
Exemption details can be found at Domestic Private Rented Landlord Guidance.
Flats
Flats above shops are restricted to a maximum LTV of 75% and dependent on the nature of the business, we may not be able to lend at all.
We will not consider a mortgage application for ex-local authority flats or ex-housing association flats:
- Where there are more than five storeys.
- Where the flats are accessed via an external deck or 'balcony access'.
We also will not consider the following:
- Lending on freehold flats or maisonettes and studio flats/apartments
- Flats in a block of more than ten storeys
- Flats on the fifth storey or above in a block without lift access
- Where the property is in a multi-storey, multi-occupancy residential building (flats) with external wall systems (cladding) or external wall attachments (e.g. balconies) These are subject to review by our valuers who will use the latest RICS guidance on cladding as listed here.
- Where an EWS1 form is required, the property is only acceptable where the form is satisfactorily completed by a suitably qualified professional, and the valuer confirms that option A1, A2 or B1 has been selected and confirms that the property is suitable security. A list of the relevant professional bodies is available to download from the RICS website.
- We will not accept applications on properties that have been assessed as A3 or B2.
- We will not accept applications where a property is undergoing remediation in respect of fire safety issues with the external wall systems or attachments; works must be completed prior to application.
- We do not require an EWS1 for properties constructed after 1 January 2020 and it can be assumed that the building has been built in accordance with current Building Regulations.
Maximum LTV, criteria, and definition for new build flats, can be found within new build properties (less than or equal to two years old, or first occupation).
New build or converted properties (less than or equal to 2 years old, or first occupation)
Houses
The maximum loan to value for a new build house is 85%. Please refer to the specific mortgage product details for maximum Buy To Let LTV limits.
We define new build as properties that have been built within two years of the mortgage application or are properties to be occupied for the first time.
Any new build properties must hold either:
- A Professional Consultant's Certificate (PCC) which is valid for the first six years, or
- An acceptable builder's guarantee which is valid for the first ten years
- Full details of acceptable guarantees and PCCs can be found by clicking here.
Second hand properties under ten years old must have been built with the benefit of an acceptable builder's guarantee scheme subject to the following exception:
- Where the property was built or converted within the past six years, we will accept the application if it was built with the benefit of a Professional Consultant's Certificate (PCC) where cover was valid for the first six years.
For both new and converted properties the legal representative must confirm:
- Building regulations' approval has been obtained
- Planning approval has been obtained and in the case of listed buildings, the relevant consents for changes to listed buildings have been obtained and that the works have been carried out in compliance with those consents
Apartments, flats and coach houses
The maximum loan to value for a new build or converted apartment, flat or coach house is 50% LTV.
We define new build as properties that have been built within two years of the mortgage application or are properties to be occupied for the first time. This includes flat conversions.
Builder's incentives
Builder's financial incentives are acceptable up to 10% of the property purchase price, providing applicants are also putting in a minimum of 5% of their own deposit resources.
If the value of the incentive is more than 5% and less than 10%, it will be deducted from the purchase price to get a net purchase price. The maximum loan and mortgage offer will be based on the lower of the purchase price (or net purchase price, where applicable), or the valuation amount.
If any element of the incentive is cashback, the full amount must be paid at completion. Instalments are not acceptable.
Applications with a builder's incentives that is over 10% in value will be declined.
The vendor of any new property is required to disclose the full value of any incentive in connection with the purchase of the property.
Purchase applications
Properties close to commercial outlets
Self-builds and self-build conversions
Property exposure limits
Applications where it is identified that the customer owns more than 10% of the development, in which the proposed property will be located, will not be accepted.
Where there are ten or less properties on the development or estate, if the applicant already owns one or more properties in the development or estate, we will not consider lending under these circumstances.
Japanese knotweed
Applications where the property has Japanese Knotweed can be considered. Further specialist reports may be required where appropriate.
Where Japanese Knotweed
- is actually causing visible material damage to a structure, OR
- is not actually causing visible material damage but is still likely to prevent use of or access to amenity space, OR
- is visible on adjoining land, but is evidently unmanaged and has the potential to significantly impact the subject property/grounds
the application can be considered subject to evidence of the property undergoing a treatment plan. The treatment plan must be carried out and monitored by an appropriately qualified and accredited individual or company accredited by one of the following trade bodies:
- Property Care Association (PCA)
- Invasive Non-Native Specialists Association (INNSA)
The treatment plan must be accompanied by a minimum 5-year insurance backed guarantee from the point treatment has finished.
Where Japanese Knotweed is close to the boundary, there is a possibility that there may be future spread from the off-site infestation onto the subject property. It is recommended the applicant seeks their own independent professional advice regarding the risk this plant might impose and the adverse effects it could have on the property should it spread closer.
Spray foam
Applications where the property has existing spray foam applied to the underside of the roof in the loft space can be considered. Further specialist reports may be required where appropriate.
- The spray foam insulation must be in good order and of good quality, breathable and not closed cell.
- The spray foam must be accompanied by documentation to confirm that it has been installed in accordance with the manufacturer’s instructions and certified by British Board of Agrément (BBA), Building Research Establishment (BRE) or Kiwa.
- The certification must be accompanied by an appropriate insurance backed warranty/guarantee which is transferrable to the applicants and future owners of the subject property.
Spray foam insulation must not:
- Have been installed as a remedy for defective or life expired roof structure (often closed cell).
- Encapsulate the structural timbers.
- Have been fitted in the wall voids of the property.
Loan criteria
Minimum loan amount
Maximum loan amount
LTV
|
Maximum advance
|
---|---|
Up to 50%
|
£1,000,000
|
Over 50% - 75%
|
£750,000
|
Acceptable loan purposes
We will consider applications for the following loan purposes providing the application meets all our lending criteria:
- to purchase a property that is or will be let
- to remortgage a property that is or will be let
- to pay for improvements/repairs to the let property or any other property owned by the applicant (owner-occupied or let)
- to raise capital to fund the purchase or provide the deposit for a new investment property or for a main residence
- to purchase the freehold title of a leasehold property which is already in mortgage to us
- to extend the lease of a property
- to purchase the equity of another party to the mortgage
- to purchase additional land
- to raise capital to repay a mortgage on another property owned by the applicant (owner occupied or Buy to Let)
This list also applies to properties that are currently unencumbered.
Unacceptable loan purposes
We will not accept applications for the following:
- where the applicants intend to purchase properties in their own name from a company in which they have an interest
- remortgage of a property currently used as a main residence on to a Buy to Let basis
- where a property is being purchased with the intention of letting it to any previous owner(s), or close relative*
- where the property is valued and/or purchased at a value less than £75,000
- where the property will be let to a close relative* or where the applicant(s) intend to live in the property in the future
- to debt consolidate
- use of the loan for bridging finance
- business investments, payment of taxes, replenishment of savings and investment in timeshares
- where the loan does not benefit all parties on the mortgage
* We define close relative as:
- Spouse, Civil Partner or Common law partner (whether or not of the opposite sex)
- Children, step-children, parents, step-parents, brothers, sisters, step-brothers. step-sisters, grandparent, step-grandparent, grandchildren or step-grandchildren
- Spouse, Civil partner or Common law partner of any person within the second bullet
Source of deposit
For property purchases applicants must provide a deposit from their own resources.
The following exceptions apply:
- family* sale purchases at a discounted price where a loan for the full purchase price (e.g. no deposit) may be considered
- a gifted deposit from close relatives*. The deposit must be a genuine unconditional gift and must not be secured by a charge or in any other way
*We define 'family' and 'close relative' as:
- Spouse, Civil Partner or Common law partner (whether or not of the opposite sex)
- Children, step-children, parents, step-parents, brothers, sisters, step-brothers. step-sisters, grandparent, step-grandparent, grandchildren or step-grandchildren
- Spouse, Civil partner or Common law partner of any person within the second bullet
Maximum repayment term
Maximum repayment term requirements apply to all loan types. The maximum repayment term is 40 years.
The maximum term may be restricted by the maximum age restrictions.
Repayment types
The following repayment types are acceptable:
- Repayment (also known as Capital and Interest repayment)
- Interest-only
- Any combination of the above
Offer validity
Find out more
Offers of advance for purchases (including Transfers of Equity) and remortgages of six months from the date of application (using the Coventry for intermediaries platform) or six months from the date of offer (when submitted via MSO).
Offers for further advances are valid for a period of four months from the date of application (using the Coventry for intermediaries platform) or four months from the date of offer (when submitted via MSO).
Please note: Where there is a simultaneous request for a further advance and a transfer of equity, the Transfer of Equity offer will be valid for six months and the further advance offer will be valid for four months.
New Build offers are valid for for nine months from the date of application (using the Coventry for intermediaries platform) or nine months from the date of offer (when submitted via MSO). A further three months may be requested using our New Build offer extension form.
Remortgaging criteria
Applications
The property needs to have been owned by the applicant(s) for a minimum of six months prior to the application date. The only exception to this is where the property has been inherited.
We’ll consider applications to remortgage a property with a residential mortgage that is currently let if:
- The property has been let for at least 6 months - prior to the date of application
- The mortgage has not been in arrears during that period.
- We may ask for evidence from the existing lender that the property is let, or we may ask for evidence of rent.
We don’t accept applications to remortgage a property currently used as a main residence on a Buy to Let basis.
Capital raising purposes
Subject to loan amount and LTV limits, we accept the following loan purposes:
- To pay for improvements/repairs to the let property or any other property owned by the applicant (owner occupied or let)
- To raise capital to fund the purchase or provide the deposit for a new investment property or for a main residence
- To purchase the freehold title of a leasehold property which is already in mortgage to us
- To raise capital to extend the lease of a property and any associated costs incurred with this transaction
- To purchase the equity of another party to the mortgage
- To purchase additional land
Portability criteria
Find out more
Portability means that your client can move (or 'port') their existing mortgage scheme to purchase a new property.
Our porting policy varies according to the customer's type of mortgage scheme. Please contact the Intermediary Development Team on 0800 121 7788 (selecting option 2) for any porting queries.