Buy-to-let policy
Maximum LTV
We lend up to 80% LTV for a new build house and 75% LTV for a new build flat.
Definition
When do we define a property as a new build?
- Up to 2 years after it was built, converted or first occupied, whichever is later
- If it’s being sold by the builder or developer, regardless of when it was built or converted
- If it’s a flat that’s been converted from a building with a different, non-residential use (for example, a church, office block, shop or factory), the 2 year rule above also applies
A residential type house that is converted into flats is not defined as a new build.
Incentives
Cash incentives
Cash incentives up to 5% of the purchase price are accepted without affecting the loan amount. If greater than 5%, the balance of the incentive above 5% must be deducted from the purchase price when calculating the maximum loan amount. Cashback deals, Stamp Duty paid, payment of professional fees (solicitors, surveyors etc) and guaranteed rental payments for a specific period, are all considered to be cash incentives.
Non-cash incentives
Non-cash incentives are accepted without affecting the loan amount. Incentives which are fixed or fitted to the property or white goods are considered to be non-cash incentives.
Warranty
Properties built or converted in the last 10 years must be covered by an acceptable warranty or professional consultant’s certificate. Find out more in our property criteria.
Offers
New build offers are valid for 210 days.
Further offer extensions of 210 days require up to date documentation, a new on sale product to be selected and re-assessment against current criteria. We will also refer to the valuer to determine whether the original valuation report can be used, an updated valuation figure should be used or a reinspection is required. This will not result in additional product or valuation fees.