Lending criteria

Here’s everything you need to know about our buy-to-let lending criteria. If you can’t find the answer you’re looking for then use our Criteria Assessment Tool or get in touch with the team.

Who do we lend to?

  • Individuals
  • Limited Companies (SPVs and Trading)
  • Limited Liability Partnerships (LLPs)
  • First-time landlords

Please note: we only lend on properties which are intended for rent. We will not agree an advance where the owners (or their relatives) plan to occupy the property.

All applicants must have/ be

  • Minimum age of 21
  • Maximum age 95 if at least one director is under 85 at End of Term
  • A UK credit footprint
  • No adverse credit history
  • Minimum income of £25,000 PA (there is no minimum for landlords with more than 24 months experience) .
  • Note that all income must be proved.

First-time landlords

  • Maximum LTV of 75%
  • Must be owner occupiers of current main residence


  • HMO Minimum property value – £75,000 in qualifying areas
  • MUFB Minimum property value – £120,000
  • Maximum LTV for HMO is 80%
  • Maximum LTV for MUFB is 75%
  • Applicants must have a minimum of 12 months prior experience as a landlord
  • Small HMO/MUFB is up to 6 beds/units
  • Large HMO/MUFB is 7-12 beds/units
  • HMOs – max. 12 bedrooms
  • MUFBs – max. 12 units
  • The definition of an MUFB is multiple flats on a single freehold
  • HMO minimum room dimensions must be determined by statute and local authority requirements

First-time HMO or MUFB landlords

Subject to availability: We offer a specific range of products for first-time landlords wishing to purchase an HMO or MUFB.

  • Maximum 75% LTV
  • Max loan size – £1,000,000
  • Up to 6 beds or units
  • Maximum 2 borrowers
  • Excludes trading limited companies
  • Excludes new builds
  • Investment valuations
  • Borrowers must be residential homeowners

We lend against

  • Standard properties
  • Houses of Multiple Occupancy (HMO)
  • Multi-Unit Freehold Blocks (MUFB)
  • Properties adjacent or above commercial premises*

*We will consider applications adjacent or above commercial premises, provided that the use for the commercial properties are in line with the local market and that they do not affect the property’s security or long-term rental opportunities. This is restricted to max. LTV of 75%.

Properties must have/ be

  • In England and Wales**
  • Rental income that meets a certain percentage of monthly mortgage repayments. To find out the percentage value that applies to your case, click here
  • A minimum property value of £65,000 for standard properties
  • A minimum property value of £75,000 for HMOs in qualifying areas
  • A minimum property value of £120,000 for MUFBs
  • Be in an area with strong rental demand, as determined by our surveyor partners
  • Be suitable for letting at completion

**Must not be holiday lets, Airbnb lets, consumer buy-to-lets, shared ownerships, Help to Buy, Right to Buy or residential properties.

ICR Rules

2 year fixed rate and Tracker rate products stressed at the greater of either 5.50% or pay rate + 2%

Standard HMO/MUFB First-time landlord HMO/MUFB
Individual – Basic rate 125% 125% 135%
Individual – Higher rate 140% 140% 140%
LTD Company/LLP 125% 125% 135%

5 year fixed rate products stressed at pay rate

Standard HMO/MUFB First-time landlord HMO/MUFB
Individual – Basic rate 125% 125% 135%
Individual – Higher rate 140% 140% 140%
LTD Company/LLP 125% 125% 135%

Affordability notes

Where the application meets more than one of the above stress rates, the higher stress rate will apply to the application.

The underlying affordability of the background portfolio for an applicant will be considered against a minimum underlying ICR rate of 125% @ 5.00%.


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Alex WithamRegional Account Manager

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