BTL & HMO Mortgages

We offer mortgages for a wide variety of residential property, whether it’s single or multiple occupancy, purpose built or converted. We also provide single loans to cover large property portfolios, including some or all units on a single freehold, or multiple properties in different locations.

The popularity of property investment is at an all time high, even amid several tax blows. With more high street lenders ready to invest, and the emergence of strong second tier lenders featuring highly competitive rates, it’s easy to see why so many people are investing their money in buy-to-lets. Whether you’re investing in property to prepare for the future, or you’re an experienced buyer with a substantial property portfolio, we have a number of options available to suit your needs. 

 

Rental Cover Requirements

Debt Service Coverage Ratio (DSCR) will depend on the property type, whether or not we are lending to a limited company and, if we are not lending to a limited company, the number of investment properties owned by each individual.

DSCR 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, DSCR will be calculated using the initial pay rate + 1.05%, with no minimum stress rate.

• if the 5 year fixed rate is being used, DSCR will be calculated using the initial pay rate, with no additional margin or minimum stress rate

 

Standard Property

• Single dwellings

• HMO/multi/student lets with up to 5 rooms

• Freehold blocks/titles of land with up to 4 residential units)

 

140% cover applies where each applicant owns fewer than 4 investment properties, including the subject property (known as a ‘Non-Portfolio’ landlord)155% cover applies where at least one applicant owns 4 or more investment properties, including the subject property (known as a ‘Portfolio’ landlord)

125% cover applies for Limited Company

 

Specialist Property

• HMO/multi/student lets with 6 or more rooms

• Freehold blocks/titles of land with 5 or more residential units

 

165% cover applies where each applicant owns fewer than 4 investment properties, including the subject property (known as a ‘Non-Portfolio’ landlord)180% cover applies where at least one applicant owns 4 or more investment properties, including the subject property (known as a ‘Portfolio’ landlord)

145% cover applies for Limited Company

 

 

Product details and criteria

Location:

England and Wales

 

LTV:  

• BTL & Small HMO (8 rooms or less): Up to 85%

• Large HMO (more than 8 rooms): Up to 75%

 

Term:

2-30 years

 

Interest-Only (I/O) Option:

Normal rates apply if I/O period is 10 years or less. If I/O period exceeds 10 years, 0.5% rate increase applies

 

Minimum Debt Service Coverage (DSCR):

125% – 180% 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 2 years (up to 70% 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 Investment Value.

 

Sector Experience:

Minimum 2 years relevant sector experience.

 

Credit History:

Good credit history is required – at least 2 years with no adverse credit.

 

Fees:

• 1.70% Arrangement Fee

• Arrangement fee reduces by 0.25% for applicants with a clear 6-month DCANS Capital payment history.

• Arrangement fee reduces by 0.50% for loans above £1m.

• Minimum fee (if combining discounts) is 1.2%.

• 0.25% of the Arrangement Fee, known as the Booking Fee, is payable on acceptance of the Formal Offer and is non-refundable.

• The balance of the Arrangement Fee can be added to the loan (without increasing the interest rate banding) or can be deducted from the advance

 

Early Repayment Charge (ERC):

Nil

 

 


Any property used as security, which may include your home and/or business assets may be repossessed if you do not keep up repayments on your loan, or any other debts secured on it.

Useful Information

The FCA does not regulate some forms of buy to lets, commercial mortgages, secured loans, unsecured loans, bridging loans, trusts, agricultural loans, overseas mortgages, and conveyancing or debt management. Our lending to limited companies, incorporated partnerships and unincorporated partnerships of three or more is not regulated by the FCA.
 
Not being regulated by the FCA means that we can make our own lending decisions (incl creative credit options). All loan agreements are still subject to UK Laws and UK Courts.
 
Kindly read all our Terms and Conditions (T&Cs) carefully before you sign any Loan Agreement. If you do not understand our loan contract terms & conditions, invest in the services of a solicitor before you sign.
 
Your use of this website and/or services constitutes acceptance of our T&Cs.
 
If you disagree with our T&Cs and How We Operate, please don't use our lending services.
 

Before You Apply

You should not apply for a loan amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
 
It is an offence to knowingly give false, inaccurate or misleading information when applying for a loan. If you give such information, you may face criminal prosecution and/or civil action for the recovery of any losses incurred by us.
 
Any property used as security, which may include your home or pensions and/or business assets, may be repossessed if you do not keep up repayments on a loan or any other debts secured on it. | Our Repayment Assistance Programme is, however, available to qualified borrowers only.
 
Note: As part of our KYC and anti-fraud checks, you cannot email us from any of the free mail providers accounts as a business, including but not limited to gmail, hotmail, or yahoo. You are advised to send us an email from the email of your business or company website. If you are borrowing as a business and you don't have a website, we can't deal with you. Learn more.