To search for an item in the Society's Lending Criteria you can either:
- Select the category - Residential, Buy to Let etc.
- You can then:
- Search for key words - "BTL", "Income", "Self Employed" etc. OR
- Select the All or First Letter within the alphabetical filter
Filter Lending Criteria Alphabetically:
Policy
Where the interest coverage ratio (ICR) on the SBS security falls below 145%, we may consider the application where all the following conditions are met;
- Rental income cover is at least 110% @ 7.05% (or 5.99% if a fixed product of 5 years or more is required)
- Applicant’s Income is £45k minimum (or £60k for joint applications)
- Background BTL portfolio rental income covers at least 135% @ 6%
On TSM's where the LTV is 65% or below the Society will assess the property using the original file valuation (index linked) supported by an AVM.
Property
Assured Shorthold Tenancy Agreements (ASTs) are acceptable, (from a minimum of 12 months experience is required), or if in Scotland a Private Residential Tenancy is acceptable.
A maximum of 4 tenants is allowed. Where there is any element of multiple occupancy, the maximum number of bedrooms acceptable is 4. We do not accept mandatory licensed HMOs.
Where the tenants are students, professionals or there is any element of multi-occupancy the Landlord must be experienced (a minimum of 12 months experience is required).
Corporate Lets are acceptable for a maximum of 3 years. The Landlord must be experienced (minimum of 12 months experience), and no sub-letting is permitted.
Where a premium lease exists, this is not acceptable. The corporate body must be responsible for the rent and can only use the property for their own letting use and not sub let. We will not accept applicants purchasing property and then creating a tenancy agreement with a letting company, who subsequently sub let to tenants.
All flats and maisonettes must be leasehold (feuhold in Scotland) with a minimum unexpired term of 85 on completion of the mortgage.
Freehold flats where the borrower will also own a share in a management company that owns the freehold are acceptable.
Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside flats where there are reciprocating lease / freehold arrangements are also acceptable.
Commonhold properties are not acceptable to lend on, by the Society.