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Rental Cover & Affordability

23/08/2017

Standard, Family & Consumer Buy to Let

Gross rental Income must cover the mortgage payment (calculated at the Society’s BTL Stressed Rate on an interest only basis) by a minimum of 145% (130% for Holiday Lets) calculated after taking into account any other borrowings secured against the BTL subject property

Evidence of actual or anticipated rental income is obtained by reference to a mortgage valuation report. Rental income declared will be compared to the estimated rental figure provided on the valuation report and the lower of the two will be used to assess the 145% coverage

Holiday Let

Gross rental income must cover the mortgage payment (calculated at 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 the latest years accounts for the business or 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