EquityOne Finance Ltd - Fast & Reliable Bridging Loans

Standard buy-to-Let 5 yr fixed 75% 6.49% 125% STD-5755-014

Standard buy-to-Let

STD-5755-014

***** UTB ***** A new range of buy-to-let products available to individual, portfolio, limited company SPV and first time landlords. Catering for specialist buy-to-let requirements such as unusual property types including flats that are high rise and over commercial premises, HMOs, multi unit freehold properties and holiday lets.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.49%

Reversion rate:

10% (BBR + 5%)

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Standard buy-to-Let 5 yr fixed 75% 7.05% 125% STD-575-021

Standard buy-to-Let

STD-575-021

***** UTB ***** A new range of buy-to-let products available to individual, portfolio, limited company SPV and first time landlords. Catering for specialist buy-to-let requirements such as unusual property types including flats that are high rise and over commercial premises, HMOs, multi unit freehold properties and holiday lets.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.05%

Reversion rate:

10% (BBR + 5%)

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Standard buy-to-Let 5 yr fixed 80% 7.19% 125% STD-580-026

Standard buy-to-Let

STD-580-026

***** UTB ***** A new range of buy-to-let products available to individual, portfolio, limited company SPV and first time landlords. Catering for specialist buy-to-let requirements such as unusual property types including flats that are high rise and over commercial premises, HMOs, multi unit freehold properties and holiday lets.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

80%

Initial rate:

7.19%

Reversion rate:

10% (BBR + 5%)

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Small 5 yr fixed 75% 6.59% 125% SHMO-5755-014

House of Multiple Occupancy (HMO) Small

SHMO-5755-014

Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.59%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Small 5 yr fixed 75% 7.15% 125% SHMO-575-021

House of Multiple Occupancy (HMO) Small

SHMO-575-021

Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.15%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Small 5 yr fixed 80% 7.30% 125% SHMO-580-026

House of Multiple Occupancy (HMO) Small

SHMO-580-026

Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

80%

Initial rate:

7.30%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Large 5 yr fixed 65% 6.65% 125% LHMO-5655-014

House of Multiple Occupancy (HMO) Large

LHMO-5655-014

Six rooms or more, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

65%

Initial rate:

6.65%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Large 5 yr fixed 75% 6.80% 125% LHMO-5755-014

House of Multiple Occupancy (HMO) Large

LHMO-5755-014

Six rooms or more, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.80%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Large 5 yr fixed 65% 7.25% 125% LHMO-565-027

House of Multiple Occupancy (HMO) Large

LHMO-565-027

Six rooms or more, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

65%

Initial rate:

7.25%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

House of Multiple Occupancy (HMO) Large 5 yr fixed 75% 7.45% 125% LHMO-575-027

House of Multiple Occupancy (HMO) Large

LHMO-575-027

Six rooms or more, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.45%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual & Corporate borrowers
Purchase & remortgage applications
Maximum term: 35 Years
Legal charge: First charge
For houses, flats, maisonettes & new-builds
Min lease: At least 75 years at application
Tenure: Freehold & leasehold property
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits. The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Small 2 yr fixed 65% 6.60% 125% / 140% SMUB-5655-014

Multi Unit Freehold Block (MUFB) Small

SMUB-5655-014

For blocks with less than 4 units funding available up to £1.5m at 70% loan-to-value, or £1.0m at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

2 yr fixed

Loan-to-value:

65%

Initial rate:

6.60%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

2% year 1, 2% year 2

Interest cover ratio:

125% / 140%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties of up to 4 units
Max loan: £1.5m subject to loan to value limits
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Small 5 yr fixed 75% 6.85% 125% SMUB-5755-014

Multi Unit Freehold Block (MUFB) Small

SMUB-5755-014

For blocks with less than 4 units funding available up to £1.5m at 70% loan-to-value, or £1.0m at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.85%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties of up to 4 units
Max loan: £1.5m subject to loan to value limits
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Small 2 yr fixed 65% 7.15% 125% / 140% SMUB-565-027

Multi Unit Freehold Block (MUFB) Small

SMUB-565-027

For blocks with less than 4 units funding available up to £1.5m at 70% loan-to-value, or £1.0m at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

2 yr fixed

Loan-to-value:

65%

Initial rate:

7.15%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

2% year 1, 2% year 2

Interest cover ratio:

125% / 140%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties of up to 4 units
Max loan: £1.5m subject to loan to value limits
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Small 5 yr fixed 75% 7.30% 125% SMUB-575-027

Multi Unit Freehold Block (MUFB) Small

SMUB-575-027

For blocks with less than 4 units funding available up to £1.5m at 70% loan-to-value, or £1.0m at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.30%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties of up to 4 units
Max loan: £1.5m subject to loan to value limits
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Large 5 yr fixed 75% 6.90% 125% LMUB-5755-014

Multi Unit Freehold Block (MUFB) Large

LMUB-5755-014

For blocks with more than 4 units available up to £700,000 at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.90%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties between 4 & 10 units
Maximum Loan: £700,000
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Multi Unit Freehold Block (MUFB) Large 5 yr fixed 75% 7.45% 125% LMUB-575-027

Multi Unit Freehold Block (MUFB) Large

LMUB-575-027

For blocks with more than 4 units available up to £700,000 at 75% loan-to-value, and ICR at 125%.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.45%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against MUFB properties between 4 & 10 units
Maximum Loan: £700,000
Legal charge: First charge
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Expat Borrowers 5 yr fixed 65% 6.65% 125% EXP-5655-014

Expat Borrowers

EXP-5655-014

Available for expatriates (UK citizens only) at up to 65% loan-to-value. Applicants must have residency in EEA or FATF member countries, hold a UK bank account and also have an active credit footprint in the UK.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

65%

Initial rate:

6.65%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
UK citizens with an active UK credit footprint only
Purchase and Remortgage applications
Lending against houses, leasehold flats, maisonettes, HMOs, MUFBs and new build properties
Maximum Loan: £2m subject to loan to value and property limits
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Expat Borrowers 5 yr fixed 65% 7.15% 125% EXP-565-027

Expat Borrowers

EXP-565-027

Available for expatriates (UK citizens only) at up to 65% loan-to-value. Applicants must have residency in EEA or FATF member countries, hold a UK bank account and also have an active credit footprint in the UK.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

65%

Initial rate:

7.15%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
UK citizens with an active UK credit footprint only
Purchase and Remortgage applications
Lending against houses, leasehold flats, maisonettes, HMOs, MUFBs and new build properties
Maximum Loan: £2m subject to loan to value and property limits
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Semi-commercial 5 yr fixed 75% 6.80% 125% SMC-5755-014

Semi-commercial

SMC-5755-014

Available for properties that have both commercial and residential components, and generate income from both the commercial and residential components. This could be a property that has a shop or office on the ground floor and residential apartments on the upper floors.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

6.80%

Reversion rate:

10% (BBR + 5%)

Fee:

5%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against semi-commercial properties where the commercial element does not exceed 40% of the total property
The value and rental income from any commercial element cannot be used to support either the affordability or LTV assessment
Maximum Loan: £1,500,000 (£700,000 if >4 units) subject to loan to value and property limits
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Semi-commercial 5 yr fixed 75% 7.45% 125% SMC-575-027

Semi-commercial

SMC-575-027

Available for properties that have both commercial and residential components, and generate income from both the commercial and residential components. This could be a property that has a shop or office on the ground floor and residential apartments on the upper floors.

Summary

Mortgage term:

5 yr fixed

Loan-to-value:

75%

Initial rate:

7.45%

Reversion rate:

10% (BBR + 5%)

Fee:

2%

Early repayment charge:

5% year 1, 4% year 2, 4% year 3, 3% year 4, 2% year 5

Interest cover ratio:

125%

Individual and Corporate borrowers
Purchase and Remortgage applications
Lending against semi-commercial properties where the commercial element does not exceed 40% of the total property
The value and rental income from any commercial element cannot be used to support either the affordability or LTV assessment
Maximum Loan: £1,500,000 (£700,000 if >4 units) subject to loan to value and property limits
Location: England and Wales only

Product fees can be added to the loan over and above the maximum loan limits The loan amount will be based upon the lower of purchase price or current valuation.

Affordabilty criteria

Assessed by interest coverage ratio (ICR), the ratio of gross rental income to mortgage interest

Affordability
	2 year fixed	5 year fixed
Basic rate:	125%	125%
Higher rate:	140%	125%
Additional rate:	140%	125%
Limited Co / LLP:	125%	125%

2 year fixed rate - Affordability calculated on greater of pay-rate +2% or 100% at BOE +5%

5 year fixed rate - Affordability calculated on pay-rate

Affordability for Semi-commercial security will only include rents from the residential elements

Loan criteria

Loan limits, LTVs, ICR calculations, and acceptable deposits.

Summary
Legal charge:	First legal charge over the security property
Min term:	5 Years
Max term:	35 Years
Min loan:	£25,001
Max loan:	£2,000,000
Purchases:	The loan amount will be based upon the lower of purchase price or current valuation

Re-mortgages

We will consider pound for pound re-mortgages and capital raising for any legal purpose other than:

Consolidation of debts that have not been maintained satisfactorily (incl. any form of arrears including, but not limited to: Ground Rent, Service Charges, Secured Lending and Unsecured Lending)
Tax liabilities - Inheritance Tax or Capital Gains Tax may be considered where the proposal does not suggest a position of financial stress for the borrower

We will consider upon referral:

Let-to-Buy transactions
Re-mortgages (where the property has been purchased within the last 6 months)

The Deposit

Funds from lawful proceeds are acceptable including:

Savings
Investments
Pension
Inheritance
Sale or re-mortgage of property
Dividends

Family gifted deposits are acceptable from immediate family members (including step in-law relations)

Builder’s Deposit - A maximum of 5% is acceptable provided there is no charge of interest over the security property and/or any form of rental gurantee

Deposit from Directors Loan/Partners Loan/Shareholder Equity or Inter-Company Loan can be considered.

Repayment Type

Capital and repayment acceptable, and interest-only repayment strategies

Maximum Loan and LTV
Property type:	Up to £	Maximum LTV
Standard
	Up to £1,000,000	80% LTV
	£1,000,000 - £1,500,000	75% LTV
	£1,500,000 - £2,000,000	70% LTV
HMO
	Up to £1,000,000	80% LTV (small HMO only)
	£1,000,000 - £1,500,000	75% LTV
Small MUFB < 4 & Semi-commerical	Up to £1,500,000	75% LTV
Large MUFB > 4 & Semi-commerical	Up to £700,000	75% LTV

Total Obligor Exposure
Up to £1,000,000	80% LTV
£1,000,000 - £1,500,000	75% LTV
Above £2,500,000	70% LTV

Borrower criteria

Individual and company borrower requirements.

All applicants must be resident in the UK for the last 3 years (excludes expats). All applicants must have permanent rights to remain in the UK.

Maximum Applicants:	Up to 4 applicants are acceptable for both Company and Individual applications
Min age:	21 years old (18 years old is acceptable as a secondary applicant)
Max age:	85 years old (95 years old is acceptable as a secondary applicant)
First Time Buyer:	Yes
First Time Landlords:	Yes
Minimum Income:	£15,000
Credit Score:	The credit score will be considered as part of the manual underwriting process, generally requiring applicants to have a score of Average or above
CCJs:	No CCJs (unsatisfied or satisfied) in the last 12 months, none to exceed £500 in the last 36 months
Defaults:	No Defaults (unsatisfied or satisfied) exceed £500 in the last 36 months
Secured Arrears:	No more than a status 2 in the last 36 months
Unsecured Arrears:	No more than a status 2 in the last 36 months
Pay day loans:	None showing in the last 12 months
Debt Management Plans:	None registered in the last 36 months
Bankruptcy, Repossession, IVAs and Administration Orders:	None registered in the last 72 months
Location:	England and Wales only
Minimum Property Value:	• Standard residential: £50,000 • Properties above/adjacent to commercial: £100,000 • Ex-Local Authority/MOD properties: £150,000 London & South East, £75,000 elsewhere • HMO/MUFBs: £150,000 within London & South East, £100,000 elsewhere
Tenure:	Freehold houses and leasehold property
Minimum Lease:	At least 75 years at application
Listed Property:	Grade II acceptable, Grade I or II* are unacceptable
Minimum Sqm:	28 Sqm
Acceptable Tenancies:	Tenancies of up to 36 months are acceptable, including: • Assured Shorthold Tenancies (AST) or Occupation Contracts (Wales) • Student Lets • Single or multiple ASTs • Short term lets: AirBnb, Holiday lettings, Serviced Apartments* *Serviced apartments are subject to there being no restrictions precluding renting on standard ASTs.
Holiday Lets:	• Provided there are no holiday let planning or usage restrictions • The property has suitable demand for sale and rental in the private rental sector • The security is not on a holiday park or a park home Rental income for Holiday Lets is calculated on a residential tenancy basis (e.g. AST)

Limited Company/LLP

The Limited Company or LLP must be registered in England and Wales before Offer and can be setup as a Special Purpose Vehicle (“SPV”), or a Trading Company.

Limited Company guarantors must include all Directors, and all Shareholders with > 25% controlling interest. Limited Company guarantors must hold an aggregate of at least 60% of the controlling interest. Guarantors to provide personal guarantees on a ‘joint and several liability’ basis
LLP guarantors must include all designated members/general partners and those members with management rights as detailed in the LLP Agreement. LLP guarantors must own 100% of the Company
All Guarantors must be individual Directors/Shareholders/Members, or a Connected Company
All Guarantors must take Independent Legal Advice before entering into the transaction

Adverse credit rules apply to the Company applicant and all Guarantors.

Portfolio Landlords

A Portfolio Schedule must be provided in all cases
Validation of their existing portfolio
Assessment of portfolio leverage subject to max acceptable portfolio leverage of 75% LTV
Assessment of the portfolio’s debt affordability. The portfolio’s aggregate gross annual rental income (pre-tax/costs/voids) should be equal to or greater than 125% of the portfolio’s aggregate annual mortgage debt interest only payments based on a stressed interest rate of 5.00%

No limit on the number of loans property investors hold with other lenders.

Expatriate

Maximum 65% LTV
UK citizens only
Residency in EEA or FATF member countries
Holding a UK bank account
Having an active credit footprint in the UK
Minimum income requirement £15,000 sterling or equivalent

Employment Status

A full 12-months employment or self-employed trading history is required, and at least one applicant must be a UK Tax Payer and either:

Employed
Self-Employed
A Contractor
Retired

Property criteria

Property requirements and restrictions.

Flats

Converted self-contained flats are acceptable subject to

Maximum 75% LTV
Maximum Loan: £1,500,000
Studio Flats are acceptable subject to them being self-contained with their own separate bathroom facilities
High-rise property, over 6 storeys are accepted where the valuation indicates good marketability and good rental demand. Blocks over 5-storeys to include a lift
Properties with Cladding can be considered, subject to Valuers comments and the EWS1 report with ratings A1, A2 and B1 only being acceptable

New builds

Maximum LTV: Houses: 75% LTV / Flats: 70% LTV
Maximum loan: £750,000

All new build properties or properties less than 10 years old must have an acceptable New Build Warranty stated in the UK Finance Handbook or Professional Consultants Certificate.

House of multiple occupancy

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 80%
Maximum Loan: £1,500,000
Up to 10 bedrooms
Small HMO – Up to six rooms with no complex structure (easily converted back to residential status) and / or let to no more than six unrelated individuals. If room sizes allow for more than one individual per room under government guidelines, the share must be a related individual.
Large HMO – Six to ten rooms, complex structures (not easily converted back to a residential status), Suis Generis planning and / or smaller size HMOs where planning allows the rooms to be a shared let to unrelated individuals and therefore unrelated individuals exceed room total.

Multi-unit freehold block

At least one applicant must have at least a 12 months of property investment experience
Maximum LTV: 75%
Maximum Loan: £1,500,000 (£700,000 if > 4 units)
Up to 10 units accepted
All units must be self-contained

Ex Local Authority/MOD properties

Maximum LTV: 70%
Balcony /Deck access flats are acceptable subject to Valuer’s comments
Levels of Low private ownership are only acceptable up to maximum 60% LTV, subject to valuers confirming good rental demand and good saleability

Properties above/adjacent to commercial premises

Maximum LTV: 75%
Maximum loan: £1,500,000
Will not consider properties above or adjacent to commercial premises where valuer comments are negative, the valuer does not recommend the property as suitable security for mortgage purposes, or where the valuer believes the proximity to commercial materially impacts future saleability or marketability of the security

Semi-commercial

Semi-commercial freehold property acceptable subject to the commercial element not exceeding 40% of the security
The value and rental income from any commercial element cannot be used to support the affordability or LTV assessments
Subject to no negative commentary on the saleability or marketability of the residential

Property Exposure

No more than 20% or 2 units (whichever is the greater) exposure within a block of flats over 4 units
For blocks of flats of 4 units or less we can look up to 100% exposure within the block

Energy performance

All security properties are required to have a minimum EPC rating of E

Acceptable security

Will only consider property types where the Valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property List.

Acceptable construction types

Any construction/roof types where the valuer confirms the property is suitable security for mortgage purposes subject to it meeting the property criteria and is not on our Unacceptable Property/Construction List. A property is considrered to be of standard construction if it is built of stone, concrete block and/or brick with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.

Modern Methods of Construction are acceptable (subject to Valuers comments)
Timber-framed construction is acceptable with an external brick skin or is BOPAS-approved
Flat roofs are acceptable. 100% flat roofs are only acceptable if a modern method is used, or the security property is a block of flats (subject to Valuers comments)

Acceptable property types:

Freehold flats/maisonettes
Commonhold properties
Non-HMO properties with more than 6 bedrooms
Properties with an EPC rating lower than E
Properties with multiple kitchens where the Valuer states it negatively impacts resaleability
Properties with shared services unless part of a House in Multiple Occupation
Properties with more than 10 acres
Properties in high-risk flood area. A High-Risk area is defined as the chance of flooding from rivers or the sea is greater than once every 30 years
Working farms or properties with agricultural restrictions/farms/small holdings
Properties with continuing structural movement, or movement that requires monitoring
Underpinned properties where no guarantees are available
Grade I & Grade II* listed buildings

Uncceptable property types:

Pre-fabricated reinforced concrete construction (PRC)
Concrete block construction designated Mundic
Mundic block materials
Properties of High Alumina Cement
Properties of 100% timber construction
Any property designated defective under the Housing Act
Properties under 10 years’ old without an acceptable structural defects warranty
Wimpey No Fines if the property is a bungalow or flat

Buy-to-Let mortgages

Competitive buy-to-Let mortgages at up to 80% loan-to-value, for investors in many types of property including residential and semi-commercial

Latest rates now available from 4.80% per annum

Mortgage type

Loan-to-value

Competitive buy-to-Let mortgages at up to 80% loan-to-value, for investors in many types of property including residential and semi-commercial

Latest rates now available from 4.80% per annum

Standard buy-to-Let

STD-5755-014

Affordabilty criteria

Loan criteria

Re-mortgages

The Deposit

Repayment Type

Borrower criteria

Limited Company/LLP

Portfolio Landlords

Expatriate

Employment Status

Property criteria

Flats

New builds

House of multiple occupancy

Multi-unit freehold block

Ex Local Authority/MOD properties

Properties above/adjacent to commercial premises

Semi-commercial

Property Exposure

Energy performance

Acceptable security

Acceptable construction types

Standard buy-to-Let

STD-575-021

Affordabilty criteria

Loan criteria

Re-mortgages

The Deposit

Repayment Type

Borrower criteria

Limited Company/LLP

Portfolio Landlords

Expatriate

Employment Status

Property criteria

Flats

New builds

House of multiple occupancy

Multi-unit freehold block

Ex Local Authority/MOD properties

Properties above/adjacent to commercial premises

Semi-commercial

Property Exposure

Energy performance

Acceptable security

Acceptable construction types

Standard buy-to-Let

STD-580-026

Affordabilty criteria

Loan criteria

Re-mortgages

The Deposit

Repayment Type

Borrower criteria

Limited Company/LLP

Portfolio Landlords

Expatriate

Employment Status

Property criteria

Flats

New builds

House of multiple occupancy

Multi-unit freehold block

Ex Local Authority/MOD properties

Properties above/adjacent to commercial premises

Semi-commercial

Property Exposure

Energy performance

Acceptable security

Acceptable construction types

House of Multiple Occupancy (HMO) Small