| Accord Mortgages |
England and Wales |
Income under £45,000 - 125% @7.5% OR payrate + 2% whichever is higher
Income over £45,000 - 145% @7.5% OR payrate + 2% whichever is higher
Like for like - 140% @6.5% OR payrate + 2% whichever is higher
Basic rate taxpayer - 5 yrs fixed rates - 125% @6.5% OR payrate + 1% whichever is higher
Higher rate taxpayer - 5 yrs fixed rates - 145% @6.5% OR payrate + 1% whichever is higher
|
Yes |
| Aldermore Mortgages |
England, Scotland and Wales |
Basic rate taxpayer - 125% IO calculation @ payrate + 2% OR 5.5% whichever is higher
Higher rate taxpayer - 145% IO calculation @ payrate + 2% OR 5.5% whichever is higher
5 yrs fixed rate
Payrate OR reversion rate +4% whichever is higher for 5 year fixed rates
(Use a 120% calculation if surplus earned income is being used)
|
Yes - Affordability will now be based on higher of (i) pay rate or (ii) 4.0%
(previously, higher of (i) pay rate or (ii) reversion rate plus 0.75% |
| Bank of Ireland |
England, Scotland and Wales |
2 year fixed product
145% @8.50%
5 yr fixed product
145% @7.25%
|
Yes - underwriters will review case to ensure of ability to pay, including level of overall debt-to-income. |
| Barclays |
England, Scotland, Wales and Northern Ireland |
The separate rental coverage has been removed as the below affordability test includes rental coverage @ 5.5% |
Yes - the BTL affordability calculator has to be completed for each application to asses personal affordability across all mortgages. |
| Bath Building Society |
England and Wales |
Basic rate tax payer
125% interest-only @5.5%
5-year fixed - 125% @ 4%
Higher rate tax payer
145% interest-only @5.5%
5-year fixed - 145% @ 4%
Like for like RM - 125% @payrate regardless of taxable income
Ltd co - 125%
|
Apply income multiples to any outstanding residential mortgage and commitments in the background. |
| BM Solutions |
England, Scotland, Wales and Northern Ireland |
Basic rate taxpayer - 125% IO @6% OR payrate +2%, whichever is higher
Higher rate taxpayer (1 or more applicant is HRT) - 145% IO @6% OR payrate +2%
5 year fixed rates
Over 65% LTV stressed at higher of 5.5% or payrate +1%
65% LTV or below stressed at higher of 5% or payrate +1%
Like-for-like remo
2 year fix is stressed @5.5% or payrate +1%, whichever is higher
5 year fix is stressed @ 5% or payrate +1%, whichever is higher
|
Underwriters will look at income received per month against residential mortgage and unsecured commitments. |
| Bluestone |
England, Scotland and Wales |
Basic rate taxpayers - 125% @payrate +2% OR 5.5%, whichever is higher
Higher rate taxpayers - 140% @payrate +2% OR 5.5%, whichever is higher
For Interest Only - @ payrate 5 years fixed
For capital repayment - 50% of rent and all earned income taken into whole affordability calculation
|
Only for the repayment products. |
| Buckinghamshire |
England and Wales |
Basic rate taxpayer - 125% @pay rate +2.5%
Higher rate taxpayer - 135% @pay rate +2.5%
Ltd co - same calculation as per the 125%
|
Yes, ONLY for consumer buy to lets, i.e. clients who are homeowners but FTLs and becoming owner of property that they or their family members have lived in. |
| Cambridge Building Society |
England and Wales |
2 year products
140% @ payrate +2%
5 year products
140% @ payrate
|
No |
| CHL Mortgages |
England and Wales |
BRT/Ltd Co/LLP - 125% @higher of 5.5% or payrate +2%
HRT - 140% @higher of 5.5% or payrate +2%
Blended ICR available where 1 applicant is HRT and 1 is BRT
5 year fix @payrate
Like-for-like remo on less than 5 year fix - stressed at higher of 5% OR payrate
|
N/A |
| Chorley |
England and Wales |
Basic rate taxpayer
125% @ 5.5%
Holiday let: 140% @ 5.5% or payrate +2% which ever is higher
Higher rate taxpayer
148% @ 5.5%
Holiday let: 160% @ 5.5% or payrate +2% which ever is higher
|
No |
| Coventry for Intermediaries |
England, Scotland and Wales |
Basic rate taxpayer (less than £49k)
Purchase - @higher of payrate + 2% OR 7%
Like for like RM - 125% @higher of payrate + 1% OR 5.5%
Higher rate taxpayer (more than £49k)
Purchase - 145% @higher of payrate + 2% OR 7%
Like for like RM - 145% @higher of payrate +1% OR 5.5%
5 yr fixed @higher of payrate OR 5.5% for any LTV
For portfolio landlords, whole portfolio will be stressed at 6.5%
|
The case will also be subject to a background affordability assessment. |
| Clydesdale Bank |
England, Scotland and Wales |
No minimum rental coverage required, based purely on affordability |
Yes, will look at an overall affordability assessment. Refer to discuss the case |
| Darlington |
England and Wales |
Basic rate taxpayer - 130% @6.99% on repayment method chosen
Higher rate taxpayer - 145% @6.99% on repayment method chosen
|
No. |
| Dudley Building Society |
England & Wales |
Basic rate taxpayer
Purchase - 125% @5.5%
Like for like RM - 130% @5.5%
Capital raising RM - 130% @5.5%
Higher rate taxpayer
Purchase - 140% @5.5%
Like for like RM - 130% @5.5%
Capital raising RM - 140% x 5.5%
|
N/A |
| Family Building Society |
England and Wales |
145% @ 5.8% |
No |
| Fleet Mortgages |
England and Wales |
2 year fixed rates:
BRT, Ltd Co, HMO, MUB - 125% @ higher of 5.5% or payrate +2%
HRT - 145% @ higher of 5.5% or payrate +2%
5 year fixed rates:
BRT, Ltd Co, HMO, MUB - 125% @payrate
HRT - [email protected] payrate
|
Yes, take into account borrowers overall indebtedness amongst other factors |
| Foundation Home Loans |
England, Scotland and Wales |
Basic rate taxpayer - 125%
Higher rate taxpater - 145%
Joint app with both BRT and HRT - 135%
2 or 3 year fix - Loan amount must be covered by the higher of 8% or payrate + 2%
5 year fix - @ payrate
|
No |
| Furness Building Society |
England, Scotland and Wales |
Overall affordability is used to assess each case using the online calculator.
Rent must also be at least 125% IO @ payrate in the background.
Holidat lets: as above
|
Yes |
| Gatehouse Bank |
England and Wales |
Ltd co and basic rate tax payers (including expat paying UK tax)
2 year fix - 125% @8%
5 year fix - 125% @pay rate
Higher rate tax payer (including expat paying UK tax)
2 year fix - 145% @7.75%
5 year fix - 145% @pay rate
International residents (including non-UK tax paying expats)
2 year fix - 130% @7.75%
5 year fix - 130% @payrate
|
Yes |
| Hanley Building Society |
England and Wales |
145% @5.5% OR payrate + 2%, whichever is higher |
Yes |
| Hampshire Trust Bank |
England and Wales |
BTL&HMO (up to 6 bed) - 140%
Large HMO (>6 bed) - 155%
Ltd Co - 140%
Semi Commercial (Resi) - 125%
Semi Commercial (Com) - 150%
2 year fixed - @payrate + 2% (BTL/HMO)
2 year fixed semi Com @payrate + 1%
5 year fixed - @payrate
|
No |
| Harpenden Building Society |
England and Wales |
135% @ 5.5% |
Yes |
| Hinckley and Rugby |
England and Wales |
145% @5.5%
5 year fixed - 145% @payrate
Top Slicing - Applications failing the stressed rate check can still be considered using net disposable income in the affordability calculator if rent covers at 145% @ payrate
[Top slicing unavailable for Portfolio Landlords.]
|
Yes |
| Hodge |
England, Scotland and Wales |
Portfolios & Holiday Lets only
145% @5.5%
For holiday Lets - ICR calculation based on average of 30 weeks using average of low, medium and high figure
|
N/A |
| Interbay |
England and Wales |
Personal name - 140% @5% OR @payrate +1.55% whichever is higher
Ltd Co - 125% @5% OR @payrate +1.55% whichever is higher
Complex BTL (HMO or student let of more than 6 rooms, MUB of more than 6 flats or multiple properties on one loan):
Personal name - 160%
Ltd co - 145%
All products:
5 yr fixed rate: @payrate
Like-for-Like RM: @payrate + 1.05%
|
N/A |
| Kensington |
England, Wales, Scotland and Northern Ireland |
Bespoke calculator online for every case
|
No |
| Kent Reliance |
England and Wales |
Minimum stress rate is 5.5% OR payrate + 1.55%, whichever is higher.
For a remortgage with no additional borrowing - payrate +1.05%
Standard property
Ltd Co - 125% calc
Personal - 140% calc
Non standard Property
Ltd Co - 145% calc
Personal - 160% calc
5 year fixed products: @payrate
|
N/A |
| Keystone |
England and Wales |
Basic rate taxpayer
125% @ 5.5%
5 years fixed - @payrate
Higher rate taxpayer
145% @ 5.5%
5 years fixed - @payrate
Ltd Co - 125% @5.5%
5 years fixed Ltd Co - @payrate
|
Yes |
| Landbay |
England and Wales |
Basic rate taxpayer - 125% @higher of payrate + 2% or 5.50%
Higher rate taxpayer - 140% @higher of payrate +2% or 5.50%
Ltd Co/LLP - 125% @ higher of payrate +2% or 5.50%
Ltd Co HMO/MUB - 130% @higher of payrate +2% or 5.5%
Ltd Co FTL/FTB/Ex-pat - 135% @higher of payrate +2% or 5.5%
5 Year Fixed Rate - @payrate
|
N/A |
| Leeds Building Society |
England, Scotland, Wales and Northern Ireland |
Basic rate taxpayer - @125%
Higher rate taxpayer - @145%
Additional rate taxpayer - @150%
2 Yr (Purchase & Cap Raising Remo)
60% LTV: 7.1%
70% LTV: 7.95%
75% LTV: 8.1%
Like-for-Like remo & 5 year fixed - all LTVs: 6%
HMOs: 170% @6%
Holiday Lets: 150% @6%
|
Underwriters will look at overall indebtedness to ensure that the buy to lets are affordable. |
| Lendinvest |
England, Scotland and Wales |
Basic rate taxpayer and Ltd Co - 125% @5%
HMO/MUFB - 130% @5%
Higher rate taxpayer - 140% @5%
HMO/MUFB - 145% @5%
5 year fixed rates - @payrate
|
Yes |
| Leek United |
England and Wales |
140% @5.5%
Like for like remortgage -125% @5.5%
|
N/A |
| Mansfield Building Society |
England and Wales |
Basic rate taxpayer - 125% @higher of 6% or payrate +2%
Higher rate taxpayer - 145% @higher of 6% or payrate +2% |
Yes: case also assessed on reasonability and indebtedness |
| Marsden Building Society |
England and Wales |
Holiday Lets (UK & Expat)
145% @5.5% OR @payrate +2%, whichever is higher
5 Year Fixed Rate - 145% @ payrate OR 115% @payrate for top-slicing
Like-for-like remo (max 60% LTV) - 125% @ payrate
Expat BTLs
UK BRT - 125% @5.5% OR @payrate + 2%, whichever is higher
UK HRT - 145% @5.5% OR @payrate +2%, whichever is higher
5 Year Fixed Rate BRT - 125% @ payrate
5 Year Fixed Rate HRT - 145% @ payrate
Top-slicing - 115% @ payrate
Like-for-like remo (max 60% LTV) - 125% @ payrate
|
No personal affordability assessment however we do accept top slicing on Expat BTL cases |
| Melton Building Society |
England and Wales |
145% @5.5%
5yr fixed rate - 145% @4%
Like for like RM - 130% @5.5%
Holiday Lets - 130% IO @5.5%
(using average of low, med & high season rent and taking 80% as max occupancy)
|
No |
| Metro Bank |
England, Wales and (mainland) Scotland |
Any rate taxpayer -
2 year fixed - 140% @7.5%
5 year fixed - 140% IO @7.5%
|
Yes |
| NatWest |
England, Scotland and Wales |
Basic rate taxpayer
125% @7.83%
5 year fix - 125% @7.44%
Like for like RM - 125% @7.44%
Higher rate taxpayer
145% @7.83%
5 year fix - 145% @7.44%
Like for like RM - 135% @7.44%
Portfolio landlords/FTB's/Non-owner occupiers
135% @ 7.83%
5 year fix - 135% @7.44%
|
Basic Rate Tax relief will be applied for BTL property finance costs when assessing affordability |
| Newcastle Building Society |
England, Scotland and Wales |
Basic rate taxpayer
Fixed for less than 5 years - 125% IO @6.25%
Fixed for 5 years or more - 125% IO @ 4.5%
Higher rate taxpayer
Fixed for less than 5 years - 145% IO at 6.25%
Fixed for 5 years or more - 145% IO at 4.5%
|
N/A |
| Newbury Building Society |
Specific Heartlands area only for BTLs |
Basic rate taxpayer - 125% @6%
Higher rate taxpayer - 135% @6%
|
Customers also need to meet overall affordability |
| Octopus Real Estate |
England and Wales |
Individual - 125%
Ltd Co - 120%
HMO/Mixed use - 145%
|
N/A |
| Paragon ( non-portfolio) |
England, Scotland and Wales |
Basic rate taxpayers (single self-contained properties) - 125%
Higher rate taxpayer (single self-contained properties) - 140%
5 year fixed rate - @5.5%
Discounted SVR - 2 year @7.62%
|
No |
| Paragon |
England, Scotland and Wales |
Basic rate taxpayers (single self-contained properties) - 125% @7%
Higher rate taxpayer (single self-contained properties) - 140% @7%
HMO/MUFB - 145% @7%
Discounted SVR rates - 12 months @6.75%/ 2 yrs @6.62%/ 3 yrs @6.95%
5 yrs fixed or more - @5.5%
|
No |
| Pepper Money |
England and Wales |
5 year fixed rate products
SSTD BTL - 140% @payrate
All other products
140% @ (see rate guide)
5 year Fixed rate products
Ltd Co: 125% @payrate
All other products
140% @ (see rate guide)
All on repayment method chosen
|
No background affordability |
| Platform Mortgages |
England, Scotland and Wales |
Basic rate taxpayer - 128% IO @5.5%
Higher rate taxpayer - 145% IO @5.5%
Like for like RM - 128% IO @5.5% (ppty must have been purchased prior to 1/1/17 and had NO further borrowing after then)
|
An overall sense check is made, such as debt to income ratio for unsecured debt and for the whole portfolio of properties |
| Precise Mortgages |
England, Scotland and Wales |
Basic rate taxpayer and Ltd co
125% @payrate +2% OR @5.5% min, whichever is higher
Higher rate taxpayer
145% @payrate +2% OR @5.5% min, whichever is higher
Additional rate taxpayer
160% @payrate +2% OR @5.5% min, whichever is higher
5yr+ fixed rates - @payrate.
|
Yes, additional underwriting checks may be required |
| Principality Building Society |
England and Wales |
Any rate taxpayer - 145% IO @7.2%
Like-for-Like RM - 125% calc (the property must have been purchased prior to Jan 2017)
Holiday Lets - same calculation - use an average of low, mid & high season rent
|
No, but a sense check is made |
| Saffron for Intermediaries |
England and Wales |
Variable products/ Capital raising/ Purchase - 140% IO @payrate +2%
5 yr fixed rate - 140% @payrate
Like for like RM - 125% IO @payrate
|
Yes |
| Stafford Railway |
England and Wales |
Below 50% LTV - 130% IO @% above pay rate
Over 50% LTV - 140% IO @2% above pay rate |
Yes |
| Santander for Intermediaries |
England, Scotland, Wales and Northern Ireland |
Basic rate taxpayer
2 or 3 year fixed rates - 125% IO calc @7.59%
5 year fixed rates* - 125% IO calc @6.09%
Like for like RM - 125% @6.09%
Higher rate taxpayer
2 or 3 year fixed rates - 150% IO calc @7.59%
5 year fixed rates* - 150% IO calc @6.09%
Like for like RM - @6.09%
*Porting applications - @5.50% applies.
Rent also needs to cover mortgage and monthly running costs – including things like voids, ground rent and service charge.
|
Yes |
| Skipton Intermediaries |
England, Scotland and Wales |
Basic rate taxpayer and £4£ Portfolio LLd's - 125% @7.15%
Higher rate taxpayer - 145% @7.15%
5+ yrs fixed rates - @6%
For Standard BTLs only (not portfolio BTL applications) - no stress test for background portfolio, just needs to be self-financing.
|
Yes, maximum 10x annual income across the buy to let portfolio |
| Suffolk Building Society |
England and Wales |
145% @5.5% OR @payrate + 2%, whichever is higher
5 year fixed rates - 145% @payrate
Like for like RM - 125% @payrate
|
No |
| Swansea Building Society |
England and Wales |
Basic rate taxpayer - 125% @payrate +2% OR @5.5% minimum
Higher rate taxpayer - 145% @payrate +2% OR @5.5% minimum
Holiday let - 145% @5.75%
|
Yes, will take into account personal income |
| Teachers for Intermediaries |
England and Wales |
Basic rate taxpayer - 125% @ pay rate + 2% OR 5.5%, whichever is higher
Higher rate taxpayer - 145% @ pay rate +2% OR 5.5%, whichever is higher
Holiday lets - 135% @payrate +2% OR @5.5%, whichever is higher
|
No |
| The Mortgage Works |
England, Scotland and Wales |
Basic rate taxpayer (max 3 properties) or Ltd co - 125% calc
Higher rate taxpayer - 145% calc
HMOs - 170% calc
1 or 2 year fixed - Higher of payrate +2% OR 5.5%
5 or 10 year fixed -
BRT/Ltd Co: @payrate + 0.50%
HRT/HMO: @payrate + 1.50%
Like-for-like remortgages -
BRT/Ltd Co: @higher of 5.50% or payrate + 0.50%
HRT/HMO: @higher of 5.50% or payrate + 1.50%
Tracker & Variables -
BRT/Ltd Co: @Higher of payrate + 2% or 5.50%
HRT/HMO: @Higher of payrate + 2% or 5.50%
Nb. if the rental income on the new application takes the client into the higher rate tax bracket, then the HRT calculation is used.
|
No |
| The Mortgage Lender |
England, Scotland and Wales |
Basic rate taxpayer - 125% @5.5% OR @payrate +2%
Higher rate taxpayer - 140% @5.5% OR @payrate +2%
5 years fixed - @payrate
Ltd Co - 125% for any rate tax payer
HMOs/ MUFB - 140% for any rate tax payer
|
No |
| The Nottingham |
England and Wales |
Like for like - 145% @6.25%
5 year fixed - 145% @6.25%
All other lending - 145% @8.25%
Ltd Co - 125% at 6.5% for all other lending
|
No |
| Tipton and Coseley Building Society |
England and Wales |
Where product rate is 3.5% or below:
BRT, Ltd Company or Ex-pat - 125% @ 5.5%
HRT - 130% @ 5.5%
Where product rate is above 3.5%:
BRT, Ltd Compant or Ex-pat - 125% @ product rate + 2%
HRT - 130% @ product rate +2%
For 5+ year fixed rates, all will be stressed at payrate
|
No |
| Together |
England, Wales and Scotland |
Basic rate taxpayer and Ltd Co - 125%
Higher rate taxpater and Additional rate taxpayer - 145%
|
If ICR is not met, yes
If ICR met, no
|
| TSB for Intermediaries |
England, Scotland and Wales |
BRT (both applicants must be BRT) - 125%
HRT, all self-employed and day rate contractors - 145%
Re-mortgages (With no additional borrowing) - Higher of 6.5% OR product rate +1% no matter product selected.
Purchases and capital raising remo:
Higher of 7.5% OR product rate +2%
For 5+ year fixed rates - Higher of 6.5% or product rate +1%
|
Yes |
| United Trust Bank |
England and Wales |
Basic rate taxpayer - 125% @ 5%
Higher rate taxpayyer - 140% @ 5%
Combined - 130% @ 5%
|
N/A |
| Vernon |
England and Wales |
Basic rate taxpayer - 130% @ 6.75%
Higher rate taxpayer - 145% @ 6.75%
Ltd co - 130% @ 6.75%
Holiday let - 145% @ 6.75%
Holiday let in a Ltd co - 145% @ 6.75%
5 year discount - payrate + 3% (capped at 6.75%)
5 year fixed rate - payrate
|
Yes |
| Vida Homeloans |
England and Wales |
Basic rate taxpayer and ltd co - 125% @ pay rate + 2% OR 5.5%, whichever is higher
Basic rate taxpayer HMO - 130% @payrate +2% OR @5.5%, whichever is higher
Higher rate taxpayer - 140% @ pay rate + 2% OR 5.5%, whichever is higher
2-year fixed rates - @ payrate OR minimum of 5%
5-year fix - @ payrate
|
Yes - only for first time buyers |
| Virgin Money |
England, Scotland, Wales and Northern Ireland |
145% @5.5% OR @payrate +2%, whichever is higher
5 year fixed rates - 145% @4.5% OR @payrate +1%, whichever is higher
Like for like RM - 125% @5% OR @payrate +1%, whichever is higher
|
Will look at outstanding balances on credit cards and loans in the background for debt to income ratio |
| West One |
England and Wales |
Basic rate/ Ltd Co/ LLP's
Variable and sub 5 year fixed - 125% @7.25%
HMO and MUFB - 135% @7.25%
Higher & additional rate - 140% @ 7.25%
For five year fixed or longer rate products - calculation is at payrate.
|
No |
| Zephyr Homelons |
England and Wales |
Basic rate taxpayer and like-for-like remo:
Standard Property - 125%
HMO, MUFB - 150%
Higher rate taxpayer:
Standard property - 140%
HMO, MUFB - 150%
Ltd Co.
Standard Property - 125%
HMO, MUFB - 135%
Stressed rate is @higher of payrate +2% or 5.5%
5 year fix: @payrate
|
No |