Coronavirus - Help us to help you.

We have temporarily reduced our opening hours.  From Monday 8 June our Principal Office will be open Monday to Friday, 9am to 6pm and closed on Saturdays. Please be patient with us while we work hard to minimise the impact of COVID-19 on our services. We apologise for any inconvenience this may cause.

Due to unprecedented demand we are extremely busy at the moment and our service levels may be longer than normal.  We apologise for any inconvenience this may cause.

Key Temporary Criteria

  • Maximum LTV is 80%
  • We are now accepting new build applications up to max 80% LTV (60% for flats)
  • We have temporarily withdrawn all shared ownership products
  • We will consider furloughed applicants by referral only. Please contact us to discuss with full details of the circumstances before submitting an application
  • We are conducting desktop valuations on all applications up to 70% LTV that meet our AVM criteria. These can then progress to offer as normal. Applications above 70% LTV and those that do not meet criteria, will be progressed as far as possible and subject to a physical valuation before a binding offer can be issued. We are now instructing physical valuations in England & Wales

 

Thank you for your patience
The Melton for Brokers

THE INFORMATION ON THIS WEBPAGE IS FOR THE USE OF PROFESSIONAL INTERMEDIARIES ONLY

Welcome to The Melton’s Buy to Let Hub

Buy to Let Calculator



Type of Buy to Let

Consumer Buy to Let – this is when you have lived in the property as your main residence or you inherit a property that was a main residence and then due to a change in circumstances you choose to let the property and you receive no other rental income. Intermediaries must hold appropriate FCA permissions

Regulated Buy to Let – this is when you or a member of your family will at some stage be a tenant (this also applies to Holiday Buy to let where you or a family member expect to rent the property at some stage)

Business Buy to Let – this is where the transaction does not merit either of the criteria above and is purely a business transaction to generate income and yield



ICR Calculation

The Melton’s standard ICR (Interest Coverage Ratio) calculation is 145% of the mortgage payment, calculated at the Society’s BTL stressed rate of 5.5% on an interest only basis (4% for 5 year fixed rate products).

This calculation is reduced to 130% for our Holiday Buy to Let products.



Income Requirements

Applicants must have a minimum earned income amount of £25k. This can be shared between joint applicants. Evidence of income is in accordance with our standard proof of income requirements.



Portfolio & Security

A maximum portfolio of 3 properties in total in mortgage to the Society or any other lender will be allowable to an individual or connected counterparty. The maximum amount that may be lent to any individual or connected counterparty is £500k in aggregate.

Leasehold properties will be considered up to a maximum loan to value of 60%.

The EPC rating for the property must have a minimum of grade E.



Regulated Family Buy to Let

Many landlords who are looking to buy a property to rent to a family member will know it’s not easy, however at The Melton we offer a Family Buy to Let mortgage allowing just that. This mortgage is also available to customers who are intending on letting the property out to non-related tenants in the short term but moving in themselves at a later date.



Holiday Buy to Let

Our Holiday Buy to Let mortgages continue to remain popular, especially due to the fact that we offer a regulated product allowing the applicant(s) to holiday in the property themselves.

Gross rental income must cover the mortgage payment (calculated at the the Society’s BTL stressed rate on an interest only basis) by a minimum of 130%. For the purpose of HBTL, gross rental income shall be;

  • In the case of an existing holiday let (purchase or remortgage), a minimum of one year’s gross rental income verified by an approved accountant, or
  • In the case of a new holiday let, confirmation of potential income and the % occupancy rate are required. These must be based on an average of low, medium and high seasonal data, received from a letting agent with relevant experience in the area of the property taking 80% as a maximum occupancy rate.

The property must be free of any planning restrictions that limits use to holiday home use only.

Details of any company managing and/or marketing the property will be required and the requirement for an assured shorthold tenancy agreement is not applicable.



Service Update

Due to unprecedented demand we are extremely busy at the moment and our service levels may be longer than normal.

We apologise for any inconvenience this may cause.