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.
|Loan size||Rate||65% LTV||75% LTV||85% LTV|
|£100,000+||Three month LIBOR +||3.19%||3.39%||3.99%†|
Three month LIBOR is currently 0.77%, and subject to a minimum rate of 0.75%.
*maximum loan amount £1,000,000.
†Maximum 75% LTV for HMOs with more than eight rooms.
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.
Add to variable rate:
|Two-year fixed||Add 0.1%|
|Five- year fixed||Add 0.2%|
The required interest coverage ratio (ICR) will depend on the property type and whether or not we’re lending to a limited company.
ICR will be calculated using a stressed rate of 5.5%, or the initial pay rate + 1.55%, whichever is higher.
However, the following exceptions apply:
- If the case is a remortgage with no additional borrowing, ICR will be calculated using the initial pay rate + 1.05%, with no minimum stress rate.
- If the five-year year fixed rate is being used, ICR will be calculated using the initial pay rate, with no additional margin or minimum stress rate.
|Personal applicants||140% rental cover applies|
|Limited company||125% rental cover applies|
|Personal applicants||160% rental cover applies|
|Limited company||145% rental cover applies|
|Property type||Features||Personal applicants||Limited company|
||140% rental cover applies||125% rental cover applies|
||160% rental cover applies||145% rental cover applies|
|Interest-only option (I/O)||
|Interest coverage ratio (ICR)||
|Early repayment Charge (ERC)||
Fast turnaround on a large portfolio loan
A loan of more than £18m was required for a portfolio of more than 130 properties
The application also involved the transition of a professional landlord’s portfolio into a corporate structure
Our buy to let criteria
Large portfolios welcomed
Single facility available for large portfolios
The case was approved at our transactional credit committee (TCC) the next day, with the case being completed in 31 days after first introduction