Our wide range of Buy to Let mortgages gives your clients a choice of different products, LTVs and product fees as well as:
- Your client will get a free standard valuation for mortgage purposes.
- Plus, either standard legal fees paid (and free checking of the written Tenancy agreement) or £250 cashback (paid to the conveyancer) for Buy to Let remortgages. Early repayment charges apply.
Please see our key criteria, affordability and property criteria details below. Alternatively, you can review our Buy to Let lending criteria
All Buy to Let properties need to meet the following criteria:
- At least 1 applicant owns a residential or Buy to Let property (not commercial) in the UK.
- At least 1 applicant must have a minimum income of £25,000 (please refer to our lending criteria for acceptable income types).
- Maximum loan size £750,000.
- Minimum property value £75,000.
- Maximum LTV 75% including new build flats.
- Remortgage with capital raising (including debt consolidation) for personal use up to 75% LTV.
On 21 March 2016, the Mortgage Credit Directive introduced new guidelines for the small number of Buy to Let mortgages that aren't set up for business or investment purposes.
Investment Buy to Let - most Buy to Let mortgages
- The property is for business purposes and aims to provide long-term income or asset growth.
- No consumer rights as this is a business or investment transaction.
Consumer Buy to Let - likely to happen as a short-term solution due to a change in your client's circumstances e.g. 'accidental landlords'
- The property isn't for business or income purposes.
- Your client can't own any other let properties.
- For remortgage applications only.
Our Buy to Let calculator tells you the maximum we may be able to lend. All Buy to Let properties must meet our minimum rental cover at the Buy to Let affordability rate on an interest only basis:
| Application type | Rental cover | Buy to Let affordability rate | ||
|---|---|---|---|---|
| All applicants' income tax bands are 20% or less1 | Any applicant's income tax band is higher than 20% | Less than 5 year products | 5 year fixed | |
| Purchase or remortgages with capital raising | 125% | 145% | 7.50% | 5.50% |
| Remortgages without capital raising (£4£) | 125% | 145% | 5.50% | 5.50% |
1The income tax band you choose should take into account profit on rental income for all properties that the applicant will own on completion.
For Limited Company Directors, please use their highest tax band payable to make sure all income is included. For more information on income tax bands, please visit https://www.gov.uk/income-tax-rates
The property being mortgaged with Santander must be self-financing.
Portfolio landlords
We define portfolio landlords as an applicant or applicants owning 4 or more mortgaged let properties (including holiday lets) on completion of the new Buy to Let property with us. Whether it's on their own, with anyone else or in a limited company or LLP where your client or clients own an interest.
Purchase and remortgage applications must meet our property criteria on completion of the new mortgage.
We'll only consider portfolio landlords if the application is a remortgage without capital raising (£4£). For these applicants, the application must meet the following property criteria on completion of the new mortgage:
- The maximum number of let properties (mortgaged and mortgage-free) can be up to 10.
- We don’t apply an affordability rate to let properties held in the applicant’s portfolio.
We don't accept portfolio landlords for remortgages with capital raising or new purchase applications. For these clients, the application must meet the following property criteria on completion of the new mortgage:
- The maximum number of let mortgaged properties is 3.
- The maximum number of let properties your client holds in their portfolio can be up to 10.
The maximum number of let properties, mortgaged with Santander your client can hold at any time is 3.
We don't accept applications where your client is remortgaging their existing residential property as a Buy to Let, regardless of any future intentions.
We don't currently offer additional loans if your client has a Buy to Let or consent to let mortgage.