Finance Criteria changes for our Buy-to-Let and Home Purchase Plans

We have today updated our Finance Criteria for our Buy-to-Let (BTL) and Home Purchase Plan (HPP) products. Listed below is a summary of the key changes.

In addition, across all our products, the term ‘Application Fee’ has been renamed ‘Product Fee’.

HPP and BTL Criteria Highlights:

• The number of bank statements required for employed and self-employed UK Expat and International resident BTL and HPP applicants has been changed to 4 months personal, 6 months business and the need for a UK credit footprint has been removed
• Overtime, commission and bonuses will now be considered for all applicants (previously essential workers only)
• Following Brexit, various changes have been made by the UK Government to the status of some UK residents from the EU. EEA/EU Nationals can have either ‘settled status’ or ‘pre-settled status’ depending on their time resident in the UK, and this may affect the documentation they are required to provide and the maximum FTV limits they are entitled to apply for. This applies to UK residents only. Please see our Criteria guides for more information
• London and big city allowances will be considered for income purposes at 100% of amount received (HPP & UK resident BTL only)
• Director/Shareholder loans will be considered (subject to terms) on BTL cases, but inter-company loans will not be accepted

HPP only Criteria Highlights:

• Maximum finance over £1m has been increased to 75% FTV from 70%
• HPP International residents maximum FTV increased to 80% from 75%

BTL only Criteria Highlights:

• Rental Top Ups are no longer allowed for International BTL applicants
• Only UK registered Limited Companies, SPVs and LLPs will be accepted on any BTL/HMO/MUFB application regardless of the location of the applicants. Therefore, offshore registered SPVs/Limited companies or LLPs will no longer be accepted
• SPVs with negative equity will not be accepted
• Director’s loans to a Limited Company/SPV will be considered but inter-company loans will not be accepted
• Child Benefit and Working/Child Tax Credits will no longer be accepted for income purposes on BTL cases
• Zero-hour contracts will now be considered for UK resident BTL applications
• Maximum age of 99 years has been removed, however, for cases where there is reliance on income to support the affordability, the maximum age remains at 85 years

Our updated Criteria Guides can be found here. Products are available to UK residents, UK Expats, International residents and UK registered corporate entities to purchase or refinance property in England and Wales, details of which can be found here.

If you have any queries or require further information our team remains available via phone and email, details of which can be found here.

Thank you for your continued support.