Buy to Let at The Cambridge

Buy to let mortgages for expatriates (expats) will be considered for British citizens up to 80% LTV, subject to product availability.

All expats must as a minimum have:

• a UK passport
• a UK bank account
• a history living and working in the UK
• a UK correspondence address (we will carry out a credit search on this address)
• minimum of £25,000 employed income. Self-employed applicants will only be considered if the business is based in the UK

With the exception of financial sanctions, all countries and currencies will be considered, at the Underwriters discretion.

First time landlords will be considered in line with the above, and consumer buy to lets are acceptable where the property has been let out for a minimum of 24 months prior.

We do not allow First time Buyers for Buy to Lets. If your customer owns a property outside of the UK, we will require a copy of their mortgage statement to confirm they are an owner/occupier.

You must:

• select an Expat Buy to Let product with a maximum loan size of £1,000,000
• provide confirmation of your customer’s UK correspondence address
• confirm details of your customer’s circumstances

Rental Calculations are based on product selection & availability:

• Where a 2-year fixed or discounted rate has been selected we will use a stress rate of the payrate + 2%.
• Where a 5-year fixed rate has been selected, the stress rate will be the payrate.
• Gross rental income from the security property, must be at least 140% of the required mortgage payment when calculated at the relevant stress rate.

We will allow Holiday Lets for Expats and an Expat product must be selected. Please visit the ‘Holiday Lets’ section of this guide for more information.

Please note: Top slicing is not available.

A specific product range is available for Holiday Lets up to 80% LTV. This is subject to availability.

We will also allow Holiday Lets for Expats; however, an Expat product must be selected.

We will consider Holiday Lets subject to the following:

• minimum loan size is £50,000
• maximum loan size of £1,000,000
• minimum income required is £25,000 per application
• a letter from a local holiday letting agency, to confirm the high, medium and low season rates. An average of these seasons, over a 30 week period is taken to calculate the annual rental income
• gross rental income from the security property, must be at least 140% of the required mortgage payment when calculated on an interest only basis at the relevant stress rate*
• EPC rating of E or above

Rental Calculations are based on product selection & availability:

• Where a 2-year fixed or discounted rate has been selected we will use a stress rate of the payrate + 2%.
• Where a 5-year fixed rate has been selected, the stress rate will be the payrate.

Gross rental income from the security property, must be at least 140% of the required mortgage payment when calculated at the relevant stress rate.

Acceptable Properties

• new and established Holiday Lets
• Airbnb and similar
• the property can be personally used up to 90 days per annum

Unacceptable Properties

• additional properties on sites
• holiday parks
• B&Bs
• properties with restrictive usage or holiday let covenants
• properties which are temporary or moveable are not permitted

Please note: Top slicing is not available.

A specific product range is available for Limited Company Buy to Lets up to 80% LTV. This is subject to availability.

We will consider Limited Company Buy to Lets subject to the following:

• minimum loan size is £50,000
• maximum loan size of £1,000,000
• minimum income required is £25,000 per application
• up to four applicants accepted
• portfolio landlords are accepted with no limit on the number of background properties
• we accept up to 10 properties to be held directly with us, or a maximum value of £4,000,000
• director guarantees are required for each mortgaged property, with independent legal advice also required
• directors only must hold 100% of the company shareholding
• newly established Limited Companies are accepted
• acceptable SIC codes: 
  • A68100 / 7012 buying and selling of own real estate
  • 68209 / 7020 other letting and operating of own or leased real estate
  • 68320 / 7032 management of real estate on a fee or contract basis
  • 68201 renting and operating of Housing Association real estate

Rental Calculations are based on product selection & availability:

• Where a 5 year fixed rate is chosen, the stress rate will be the payrate with an interest cover ratio of 125%
• Where any other Limited Company Buy to Let product is chosen, the stress rate will be the product payrate plus 2% with an interest cover ratio of 125%

We are accepting applications from Buy to Let Portfolio Landlords up to 80%, or 80% where a Special Purpose Vehicle is used (please see our Buy to Let Limited Company criteria).

This is defined as landlords with four or more mortgaged Buy to Let properties in their personal name or company owned Buy to Let rental properties.

Portfolio landlords are acceptable with no limit on the number of background properties. 

Up to 10 properties can be held directly with us, or a maximum value of £4 million.

The following documentation must be provided at Decision in Principle stage for each application.

• BTL Portfolio Spreadsheet found here
• Financial Statements and / or Tax Returns
• Last two years Tax Calculations and Tax Year Overview
• Statement of Assets and Liabilities found here
• Bank Statements to confirm rental income and mortgage payments of the portfolio
• Last two years accounts (only required for properties that are held in a limited company) 

In addition, please ask your customer to advise on: 

• The property investment objective for the whole portfolio?
• The management arrangements for the portfolio?
• The type of tenants within the portfolio?
• How rental voids are managed and any history of voids within the last 12 months
• If there is any overdue tax that needs to be paid on the portfolio
• The future plans for your portfolio?

Your customer must sign a Portfolio Landlord mortgage declaration as part of the application process found here.

There is no limit, to the number of properties held in the Portfolio however where the Portfolio LTV is greater than 75%, this will be unacceptable. For multiple applicants this will be tested on an individual portfolio basis.

We will not offer Top Slicing for Portfolio Landlords.

Buy to Let applications are not accepted from First Time Buyers. 

We define a 'First Time Buyer' as an individual who has not been party to a mortgage or owned a property at any time. 

To qualify for a Buy to let mortgage your customer must be either an owner outright or an owner with a mortgage (which must have been in place for at least 6 months).

Loan to value (LTV) is calculated as; loan amount divided by property value or purchase price (whichever is the lower), expressed as a percentage.

We will lend up to 80% on buy to let purchases and remortgages.

For buy to let portfolio landlords, expats and holiday lets, the maximum LTV is 80%.

The main criteria for assessing your customer’s ability to repay is based on the Interest Coverage Ratio (ICR) against rental income. Gross rental income from the security property, must be at least 140% of the required mortgage payment when calculated at the relevant stress rate.

Rental Calculations are based on product selection & availability:

• Where a 2-year fixed or discounted rate has been selected we will use a stress rate of the payrate + 2%.
• Where a 5-year fixed rate has been selected, the stress rate will be the payrate.

An assessment of the market rent based on a single household will be provided as part of the valuation (excluding Holiday Lets). We will apply the lower of the current rent or estimated rental value as given by the valuer.

We may be able to consider top slicing on standard Buy to Lets, please visit the 'Top Slicing' section of this criteria search for further information. 

We will use your customer’s personal income to cover any shortfall in rent which is needed for your customer to obtain the loan amount they require.

Our residential affordability assessment will need to be completed to show the shortfall is affordable, taking their income along with their monthly expenditure into consideration.

Top slicing is limited to landlords with 1-3 mortgaged buy to let properties and is not available to portfolio landlords, expats or Let to Buy applicants.

Properties must be self-sufficient with the existing rental income being equal to or greater than 110% cover of the pay rate. This will also apply to any other buy to let’s owned by your customers.

Where your customer has a high level of debt, or the Underwriters are concerned about the residual affordability, Top Slicing may not be agreed.

Speak to your Business Development team for further information before submission.