BUY TO LET PRODUCTS & CRITERIA

Number of Applicants

Four. For Limited Company application details of up to four directors or shareholders as applicants will be captured. The applicants must cover a minimum of 75% of total shareholding.

Minimum age

21 years at application.

Maximum age

80 years at application, 95 years at end of term.

Applicants (including any Directors) older than 80 years at the end of the mortgage term should have a clear succession plan in place. Please provide confirmation of this.

Nationality

Applications from UK nationals and EEA member states must be traceable at a UK address. We will not lend to applicants who are not UK nationals and do not reside in the UK.

Skilled Worker or Health & Care VISA accepted with the following criteria:

• A minimum of 1 years residency in the UK A valid UK Skilled Worker (formerly tier 2 VISA) or Health & Care VISA

• A minimum of 6 months remaining on the VISA at application.

• Maximum of 75% LTV

Diplomatic immunity is not allowed.

Acceptable proof of ID and address

If we are unable to verify all applicants using Electronic ID, proof of ID and residency will be required for each applicant.

Impaired credit

Please refer to the product guide for product credit profile criteria. Credit profile refers to the individual personal applicants.

Consumer buy-to-let

We cannot accept applications for consumer buy-to-let. Prior to submitting an application, the Intermediary is required to establish and confirm that the application is not a consumer buy-to-let.

Prior Residential Use

Applications to remortgage a main residence including inherited properties to a Buy to Let are not accepted unless they satisfy property has been let for 12 months prior to application, has been vacated for 24 months and satisfies the below criteria:

• The applicant must have vacated the property for a minimum period of 24 months prior to application.

• The property must have been rented out for a minimum of 12 months, with rental proof required where applicable.

• Applications must be submitted via an intermediary; direct applications are not permitted.

• Ex-Pats are acceptable but also subject to criteria within our BTL Ex-Pats Criteria Guide and in line with above the property must have been vacated for a minimum period of 24 months prior to application.

First-time landlord

First time buyers are not permitted. At least one applicant or Director must have owned and still own at least one residential property for a minimum of 12 months. Maximum loan amount for First Time Landlords £500,000.

Additional Support Requirements

The Additional Support Requirements form should only be submitted where applicable to ensure TML can provide any support required to applicants. It will not impact the outcome of an application.

Interest coverage rate (ICR) test will apply on all cases on an interest only basis. The interest rate used to calculate the ICR test will be:

• 5 or more years fixed rate products: the initial rate.

• Tracker and 2 year fixed rates products: A nominal rate (currently 5.5%) or the initial rate + 2%, whichever is higher.

ICR

Proof of basic rate tax status - all applicants

Where all applicants are declared as basic rate tax status during application, proof of basic rate tax status will be required. Where the ICR meets 140%, we will assess the cases as such and will not require proof of tax status

Acceptable proof is tax code status letter/payslip/p60/tax calculation plus tax year overview. Other items may be acceptable on a case by case basis.

Applications

We will only accept applications from Special Purpose Vehicle (SPV) Ltd companies.

Acceptable Standard Industrial Classification (SIC) codes

68100 Buying and selling of own real estate.
68209 Other letting and operating of own or leased real estate.
68320 Management of real estate on a fee or contract basis.
68201 Renting and operating of Housing Association real estate.
55100 Provision of accommodation for short term stay.
55209 Other holiday and other collective accommodation.

Directors or shareholders

For Limited Company applications we will accept up to 4 directors or shareholders. They must cover a minimum of 75% shareholding. If the company has less than 4 directors or shareholders, all must be included in the mortgage application.

Personal guarantees

Personal guarantees are required from all directors and shareholders.

Minimum income & Employment status

There is no minimum income requirement except for Ex-pat BTL applications (See Ex-pat Criteria Guide). One or more applicants must be employed/self-employed or being in receipt of pension income.

Minimum valuation

Refer to product and criteria guides as minimum valuation amounts may vary by product or property type.

Maximum valuation

None.

Tenure

Freehold or leasehold in England and Wales, absolute ownership or freehold in Scotland. Multi-unit blocks must be freehold only.

Locations

We will consider lending on residential properties in mainland England, Wales & Scotland. We will also consider properties on the Isle of Wight & Anglesey. Applications in relation to properties in Northern Ireland are not acceptable.

Acceptable tenancies

AST of either 6 or 12 months if the property is in England.

Private Residential Tenancy, or Short Assured Tenancy (if prior to 1st December 2017) if the property is in Scotland. Occupation Contract or Standard Contract if the property is in Wales. Shared households and student lets. Corporate lets. Standard format tenancy.

Unacceptable tenancies

Assured, protected or statutory tenancies. Holiday & Short term lets where no sustainable AST demand or the specific the product is not selected.

New Build

A new build property is a property built/converted within the last 12 months based on the date of the completion certificate. Or, where the build or conversion was completed more than 12 months ago, new build applies where the property has not been previously occupied.

Definition

Applicants with 4 or more mortgaged Buy to Let properties

Maximum number of properties

No maximum

Maximum portfolio value

£5,000,000 with The Mortgage Lender.

Evidence requirements

For 4-10 properties:

• Business plan

• Portfolio schedule

On request by underwriting, or for more than 10 properties:

• Business plan

• Portfolio schedule

• Cashflow statement

• Asset and liabilities declaration

Unencumbered properties

Details of all properties held by applicants should be included in the Portfolio Schedule, including unencumbered properties.

Purpose

Purchase and remortgage.

Remortgage

Remortgages within 6 months of purchase can be considered. Please contact The Hub for more information.

Repayment method

Capital and Interest. Interest Only. Part and Part.

Minimum loan

Refer to product and criteria guides as minimum loan amounts may vary by product or property type.

Maximum loan

Up to £3,000,000 per single asset exposure with Aggregated exposure limited to £5,000,000.

Minimum term

5 years.

Maximum term

35 years.

Porting

Our loans are not portable.

Offer validity

90 days. New build offers will be valid for 6 months subject to valuation / reinspection, if required.

Payment method

Payments must be made by direct debit. The direct debit mandate is required along with a bank statement for this account evidencing the account holder name and address.

Capital raising

If capital raising more than £150,000, evidence may be required of use of remortgage funds. If you are seeking to capital raise more than 50% of the available value in your property, evidence of use of remortgage funds may be required.

Void reserves

TML may request evidence that the applicant holds a minimum of 3 months of funds to meet mortgage payments in instances of rental voids. A full copy of a bank or deposit statement/bank data in an electronic format from an approved source demonstrating an acceptable level of savings may also be required.

Maximum loan and LTV

Standard

*Only applies to London and South East of England

Deposit

Deposits are required to be evidenced.

Acceptable deposits

• Individual savings

• Limited Company/LLP reserves or working capital.

• Sale of property or pending sales.

• Sale of shares or investment.

• Inheritance.

• Equity from another property.

Please contact The Hub to discuss.

Vendor/Builder gifted deposit

New build properties can have up to 5% builder gifted deposit.

Converted properties up to 5% considered on a case-by-case basis.

Gifted deposit

Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members will be considered on a case by case basis. Gifts from non–family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to a TML Gifted Funds/Equity Form being provided from the deposit provider together with all required identification and evidence of funds being submitted.

Family gifted equity

Up to a maximum 75% LTV and satisfaction that the transaction does not constitute Consumer BTL. Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members. Gifts from non – family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to TML Gifted Funds/ Equity Form from deposit provider and identification.

Maximum bedrooms

6

Minimum valuation

£120,000.

Maximum LTV

75%

Licence

HMO licence is required if deemed appropriate from the Local Authority.

Our maximum intermediary fee is capped at 2% of the loan amount or £2,500, whichever is higher. Applications with intermediary fees exceeding this amount will refer to allow the fee to be adjusted within the maximum limit.

Current country of residence

UK Nationals living or working outside of the UK

Acceptable proof of ID and Proof of Residence in current country.

Valid, in-date UK Passport is required for ALL applicants. TML will also attempt to validate all applicants by EID where possible.

The passport copy supplied must be certified by a suitable person e.g. lawyer, legal professional, Embassy, accountant who must certify by signing, and in clear, block capitals, confirm their name, profession, business address and state they have “seen the original” and that it is a “true likeness” of the applicant.

Proof of Current residency is required on all cases. Ideally this should be provided in English or we may require additional evidence (for example an employment reference in English).

1 item dated within the last 3 months.

The local equivalent of the following item showing their full current residential address (not PO Box);

• Bank/building society statement

• Utility bill (excluding mobile phone and catalogue/mail order)

• Credit card statement

• Most recent lender statement

• Equivalent local authority notification of local rates or tax

• A traceable employers reference

These documents must be certified by a suitable person e.g. lawyer, legal professional, Embassy, accountant who must certify by signing, and in clear block capitals, confirm their name, profession, business address and state they have “seen the original” and that it is a “true copy”.

First time landlord

First Time Landlords are not allowed. At least one applicant or Director must have owned, let and still own one or more Buy to Let property for a minimum of 12 months.

Definition of an Expat

Applicant(s) must be UK Nationals, living or working abroad and must own at least one property in the UK. If one of the applicants is UK based, the overall application will still be underwritten as an Expat case.

Maximum number of applicants

Four. For Limited Company applications, details of up to four directors or shareholders as applicants will be captured. The applicants must cover a minimum of 75% of total shareholding. If any applicant is a UK resident, the application will be underwritten as an Expat case.

Minimum age

21 years at application.

Maximum age

80 years at application, 95 years at end of term.

Spouses

A nonexpatriate spouse can be accepted but where one/more of the applicants is UK based, the overall application will still be processed as an Expat case.

Additional Support Requirements

The Additional Support Requirements form should only be submitted where applicable to ensure TML can provide any support required to applicants. It will not impact the outcome of an application.

Minimum income

Minimum income is £40,000 GBP equivalent for employed and retired.

Minimum Income is £60,000 GBP equivalent for self-employed and contractors.

For joint applications, at least one applicant must meet the minimum income thresholds above.

Employed

1 month’s payslip required (or P60/local equivalent) plus 1 month’s salary mandated bank statement.

The employer must be a recognisable, traceable company abroad.

If a reference is to be supplied, this should be in English.

Self-employed

Self-employed applicants must be professionals (e.g. a business owner, professional consultants, professional contractors, lawer/partner). Business owners will be required to have an accountant with internationally accepted qualifications).

PO Box addresses will not be accepted.

Evidence should be provided in English.

Contractors

Professionals who work for recognisable and traceable companies.

Retired

Accepted.

Minimum ICR

140% on Ex-Pat applications.

Interest coverage rate (ICR) test will apply on all cases on an interest only basis. The interest rate used to calculate the ICR test will be:

5 or more years fixed rate products: the initial rate.

All other products: A nominal rate (currently 5.5%) or the initial rate + 2%, whichever is higher

Purpose

Purchase and remortgage.

Remortgage

Remortgages within 6 months of purchase can be considered. Please contact The Hub for more information.

Repayment method

Capital and interest. Interest only. Part & part.

Minimum loan

£75,000

Maximum loan

£750,000

Porting

Our loans are not portable.

Offer validity

3 months. New build offers will be valid for 6 months.

Deposit

Funds are expected to be in the UK.

Acceptable deposits

Individual savings. Limited Company/LLP reserves or working capital. Sale of property or pending sales. Sale of shares or investment. Inheritance. Equity from another property. Please contact The Hub to discuss.

Evidence must be in English.

Vendor/Builder gifted deposit

New build properties can have up to 5% builder gifted deposit. Converted properties up to 5% considered on a case by case basis.

Gifted deposit

Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members will be considered on a case by case basis. Gifts from non–family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to a TML Gifted Funds/Equity Form being provided from the deposit provider together with all required identification and evidence of funds being submitted.

Gifted deposits must be from a UK donor source and held in a UK bank account.

Family gifted equity

Up to a maximum 75% LTV and satisfaction that the transaction does not constitute Consumer BTL. Gifted deposits are allowed from family members i.e. parents, grandparents, spouse, gifts from wider family members. Gifts from non - family members will be considered on a case by case basis. All gifted deposits must be disclosed. Subject to TML Gifted Funds/Equity Form from deposit provider and identification.

Gifted deposits must be from a UK donor source.

Our maximum intermediary fee is capped at 2% of the loan amount or £2,500, whichever is higher. Applications with intermediary fees exceeding this amount will refer to allow the fee to be adjusted within the maximum limit.

Active UK credit profile

Must have an active UK credit profile.

UK bank account

Must have an active UK current bank account, this is the account from which the monthly mortgage payment will be made.

Proof of the account is required.

UK property management

Must be able to demonstrate family member or management company who can oversee the property. Provide company name & address (if a property company) or family member name, address & relationship.

HMO/MUB

Not acceptable.