• Regulated BTL based on full affordability
• Let To Buy will be considered
• Consumer Buy to Let’s can be based either on rental or full affordable
• We do not offer Top Slicing, needs to fit on rental or full audibility.
• Minimum income of £15,000 to cover any rental voids which may incur
• We will not accept an application from a portfolio landlord
• Applicant(s) should ordinarily be existing owner occupiers (with or without a mortgage). Consideration will be given where an applicant does not own their own home, subject to the underwriter being satisfied with the underlying rationale
• Special Purpose Vehicle Companies are not allowed
• Borrowers are restricted to a maximum portfolio with the Society of £1 million including main residence
• The maximum duration on the term of the tenancy is 36 months and the AST should be renewable at 12-monthly intervals.
• We will accept a maximum of 4 individuals (regardless of the relationship to each other) on the agreement and a maximum of 4 separate agreements for any one property (where individual rooms are let out).

For professional BTL applications (not CBTL), the rental income calculation is used to determine affordability. The amount earned in rental income must cover 140% for higher tax payers, 130% for basic payers, of the Interest Only mortgage payment, calculated in accordance with the following:

• For fixed rate products of 5 or more years duration – 5.5%
• For all other products - the higher of pay-rate plus 2% or 5.5%

Where the rental cover calculations are not met, the Society will consider lending where it can be adequately demonstrated that the strength of borrowers’ covenant is sufficient to create an acceptable lending risk. In order to demonstrate this, the following criteria will be met:

• The BTL mortgage must fall within multiples of 4.75 (income) for a sole application and 4.5 for a joint application, with the annualised payment for the background residential mortgage having first been deducted from gross income and
• The applicants must provide a budget planner and by using either this or ONS data, it must be clear that affordability exists for the background residential mortgage
• The Society will accept as income the net rental figure from existing BTLs in the background, provided that this can be evidenced for at least the previous 12 months. Evidence will be required in the form of SA302s or company accounts
• The Society will carry out an assessment of the customer’s ability to cover rental voids, to ensure the customer can not only cover the void but also cover the required expenses associated with owning and maintaining a rental property.