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
• 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
• 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
England and Wales
• BTL & Small HMO (8 rooms or less): Up to 85%
• Large HMO (more than 8 rooms): Up to 75%
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
Individuals, Limited Companies, LLPs, Partnerships, Trusts and Pension Schemes.
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.
Minimum 2 years relevant sector experience.
Good credit history is required – at least 2 years with no adverse credit.
• 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):
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.