Buy-to-let policy
Allowable Purposes
- Lending must be to individuals (rather than a company, trust, SPV etc) and is subject to our criteria for property and tenancy
- We can lend for non-regulated BTL and consumer BTL
- We allow additional borrowing as part of a remortgage application for most reasons other than business purposes, stocks and shares, currency speculation, time-shares, ASU premiums and tax bills
- Allowable purposes for additional borrowing include for the deposit on a new property, home improvements, secured or unsecured debt consolidation, paying off a Help to Buy Equity Loan in full, fully staircasing shared ownership
For additional borrowing taken out as part of a let to buy transaction to purchase a new residential property, check the let-to-buy article of our BTL criteria.
Maximum LTV
The maximum LTV for additional borrowing, including where it is for debt consolidation, is 80%.
The maximum LTV for portfolio landlords or top slicing is 75%.
Debt Consolidation
We include the monthly payments of any debts being repaid in (other than Help to Buy Equity Loans), our affordability assessment as if they were not being paid off.