Buy to let and HMO loans

With experience in complex proposals and ownership structures, we can help with more than just standard buy to let.

Offering up to 85% LTV and interest-only options, our criteria can support both converted and purpose-built HMOs – with investment value being considered.

We also could help with large portfolio* cases where properties are on either a single freehold or in multiple locations.

*You must register on our Buy to Let Hub if you wish to submit portfolio cases.

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Limited edition range

Five-year fixed rate products

Standard range fee reductions and Expat loadings still apply

65% LTV	75% LTV
3.99%	4.09%

Fixed rates include 3m LIBOR and margin

Standard product range

(Fee 1.7%)

Product	Loan size	65% LTV	75% LTV	85% LTV
Variable	£100,000+	3m LIBOR + 3.19%	3m LIBOR + 3.39%	3m LIBOR + 3.99%*¥
Two-year fixed	£100,000+	4.04%	4.24%
Five-year fixed	£100,000+	4.14%	4.34%

Three month LIBOR is currently 0.79%, and subject to a minimum rate of 0.75%.

Fixed rates include 3m LIBOR and margin

*Maximum loan amount £1,000,000.

¥ Maximum 75% LTV for HMOs with more than eight rooms.

Expat

If your client's a UK national living and working abroad, an additional 0.25% margin will apply, as will specific lending criteria. All other fees and product terms remain as standard.

Property type	Features	Personal applicants	Limited company
Standard	Single dwellings HMO/multi/student lets with up to five rooms Freehold blocks/titles of land with up to four residential units	140% rental cover applies	125% rental cover applies
Specialist	HMO/multi/student lets with six or more rooms Freehold blocks/titles of land with five or more residential units	160% rental cover applies	145% rental cover applies

Location	England and Wales
LTV	Up to 85% on buy to let and small HMO properties (eight rooms or fewer) Up to 75% on large HMO properties (more than eight rooms)
Term	2-30 years
Interest-only option (I/O)	Normal rates apply if I/O period is 10 years or less. If I/O period exceeds 10 years, 0.5% rate increase applies
Interest coverage ratio (ICR)	125% – 160% as shown above
Eligible applicants	Individuals, limited companies, LLPs, partnerships, trusts and pension schemes
Property types	Houses, flats, blocks of flats, multiple units on one freehold, new-build (up to 75% LTV), converted during past two years (up to 75% LTV) are all acceptable Multiple units must all be individually marketable and mortgageable for us to consider lending against the sum of individual values, otherwise lending may be based on the lower of vacant possession value (VP), investment value or purchase price
Credit history	Good credit history is required – at least two years with no adverse credit
Interest rate	Interest rate is margin plus LIBOR (three month) Three month LIBOR is currently 0.79%, and subject to a minimum rate of 0.75% If LIBOR reaches 3%, minimum LIBOR becomes 3% The start rate is the lifetime floor rate for a loan Discretionary rate increases may apply to complex cases, large HMOs generally eight or more rooms, (including purpose-built student accommodation) or cases involving a high concentration of individual units in a particular location
Fees	£130 administration fee is payable when the valuation is instructed, and is non-refundable 1.7% arrangement fee, payable on completion, can be added to the loan and is non-refundable Arrangement fee reduces by 0.25% for applicants with a clear six-month InterBay Commercial payment history Arrangement fee reduces by 0.5% for loans above £1m Minimum fee (if combining discounts) is 1.2%
Early repayment Charge (ERC)	Variable: 3% years one to five, then 1% for the life of the loan Fixed: 4% year one, 3% for remaining fixed period, then 1% for the life of the loan 10% of the balance can be repaid in any 12 month period, without notice and without incurring ERC
Expat	UK nationals only Limited company/LLP applicants acceptable Minimum loan £125,000 Minimum UK equivalent income of £50,000 Employed applicants must work for a UK, EU, UK agency, or for a recognised and traceable company abroad Self-employed applicants must be professional, such as an equity partner in a law firm, professional contractor or a business owner with an internationally recognised accountant Self-employed applicants who only have a PO Box address aren’t acceptable Applicants must have at least two years of UK commercial property ownership experience Applicants, including directors and shareholders of limited companies, must have a UK credit footprint, with a clean credit history for a minimum of three years If an applicant resides in Australia or Monaco, the property must be held in a limited company Applicants who live in Saudi Arabia, or who work/reside in any country on a banned or watch list, aren't acceptable Additional requirements may apply depending on the country of residence, and these will be made clear in any offer document Mortgage payment must be by direct debit, in sterling from a UK bank

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Buy to let and HMO loans

Limited edition range

Standard product range

Expat

Fast turnaround on a large portfolio loan

The scenario

Our buy to let criteria

The outcome