Robert Lankey, N&P’s head of commercial lending, said: "We have improved our lending criteria and will now consider first time landlords for our Buy to Let (BTL) mortgages. They will need to meet all of our standard BTL criteria as well as having a personal income that covers any outstanding mortgages and the proposed BTL mortgage. This exciting change allows first timers the opportunity to take advantage of our very attractive products which have previously been available only to experienced landlords. This offers the best possible yield on their new venture and enabling them, if they wish, to start building up a property portfolio."
Main details:
- Minimum advance £50,000
- Maximum advance £1,000,000
- Minimum property value £75,000 (£100,000 ex-local authority properties)
- Up to 75% LTV
- Rental coverage 125% - 130%
- Minimum age of 25 for main income earner
- Maximum age of 70 at end of mortgage term
- Affordability is assessed by applying the residential income multiples of 3.75 x income for single applicants, or 2.6 x income for joint applicants.
- 75% of the annual rent receivable from the BTL property can be included in these income calculations
- Maximum 10 properties
- To find out more, customers can call N&P’s Buy to Let Services Team on 0845 127 27 28 or log onto www.npbs-commercial-mortgages.co.uk
Example:
- Single applicant
- Existing residential mortgage of £80,000
- Proposed BTL mortgage £60,000
- Annual rental income on BTL mortgage £4,200 X 75% = £3,150
- Personal income £35,000 + £3,150 = £38,150
- £38,150 x 3.75 = £143,063
- £143,063 covers all mortgages and as long as all other standard BTL criteria is fulfilled this application could proceed.
