Let to buy (LTB)

Let to Buy (LTB) applications are acceptable.   

The anticipated monthly rent should cover the monthly mortgage payment by 145% at an interest rate of 5%*. If it does not we will calculate the deduction as the monthly mortgage payment multiplied by 145% minus the monthly rental income.  If the rental income does not meet at least 100% of the calculation the full mortgage payment will be taken as a commitment. 

*As the majority of Buy to let properties are mortgaged on an interest only basis, we use an interest rate of 5% on the outstanding mortgage (as evidenced on the credit records) to determine if the rental income meets the 145% rule.

The applicant(s) may be asked to provide: 

• Verification of rental Income - A copy of the rental valuation document which must have been completed by an ARLA registered agent
• Consent to Let - Evidence the customer has consent to let
• Verification of future mortgage balance - If the customer is applying to re-mortgage the property to a BTL – a copy of the KFI or ESIS document will be required to evidence the future mortgage balance.