HMO BTL

Our HMO range features products available to first-time and experienced landlords looking to purchase or remortgage properties with up to 6 bedrooms.
In addition, the range features Large HMO products available to experienced landlords, acceping properties with 7 or more bedrooms.
Products are available for individual landlords, as well as those operating through a Limited Company. Expat solutions are available.
Please note: MUB BTL products are currently unavailable.

Who is this product suitable for?

• First Time Buyers (up to 6 bedrooms)
• First Time Landlords (up to 6 bedrooms)
• Existing landlords looking to purchase a new property or remortgage an existing property
• Landlords operating via a Limited Company
• Portfolio Landlords

Loan, Fee & Product Details

• Interest only or repayment
• Maximum loan size £3,000,000. Loans over this are priced on a bespoke basis and have restricted LTVs
• Maximum LTV is 75% for properties with up to 6 bedrooms and 70% for properties with 7 or more bedrooms
• For portfolio landlords the maximum LTV INCLUDING fees is 75%
• Maximum Portfolio with Saffron of £3m (no external exposure limit)
• Student Lets accepted
• Regulated BTL accepted for individual landlords with properties up to 6 bedrooms

Applicant Criteria

• First Time landlords and First Time Buyers accepted for properties up to 6 bedrooms
• For properties with 7 or more bedrooms, borrowers must have a minimum of 12 months standard landlord experience.

Affordability and Income Criteria

Individual Landlords:

• 5 Year Fixed Rate - 140% of pay rate
• 2 Year Fixed Rate and Variable rates: Rental cover 140% of either pay rate +2% or 5.5% whichever is higher
• Rental Cover on debt for debt re-mortgage cases 125% of pay rate
• Regulated buy to let mortgages are based on affordability. We will not include rental received on this property towards the affordability calculation.

Limited Company landlords: 

• 5 Year Fixed Rate - 125% (up to 6 bedrooms)/ 140% (7 or more bedrooms) of pay rate 
• 2 Year Fixed Rate and Variable rates: Rental cover 125% (up to 6 bedrooms) / 140% (7 or more bedrooms) of either pay rate +2% or 5.5% whichever is higher
• Rental Cover on debt for debt re-mortgage cases 125% of pay rate

• No minimum income for experienced landlords (minimum of 12 months experience)
• If the borrowers are inexperienced landlords, at least one applicant must meet the minimum income requirement of £50,000

Property Requirements

• Property must not be let on single contract without prior agreement
• Minimum Property Value: £150,000 
• Property must be let on an APT basis (single or multiple accepted)
• Up to 6 bedrooms: Rental assessment is based on occupation by 1 family on an unfurnished let
• 7 or more bedrooms: Rental assessment is based on HMO rental valuation
• Minimum energy performance rating of D on an Energy Performance Certificate (EPC)
• Unlicenced HMO up to 6 bedrooms accepted unless license mandated by Local Authority.
• If license is required, all local authority licensing requirements must be met prior to funds being released
• Maximum number of kitchens: 1 for properties with up to 6 bedrooms, unlimited for properties with 7 or more bedrooms
• Some or all tenants share toilet, bathroom or kitchen facilities
• MUB BTL products are currently unavailable.

Additional Details for Limited Company Landlords

• Personal Guarantees for total borrowing (inclusive of fees) taken from all Directors for applications exceeding 55% LTV
•  All Shareholders in the Company must be named as Directors
• Maximum of 4 Directors – individual credit checks will be undertaken
• Any proposed changes to Directors during life of mortgage must be subject to our approval
• Details of all properties each Director has an ownership in (either in own name or a business name) must be provided
• Limited Companies registered in the UK only
• No time limit as to how long registered i.e. new SPV’s allowed
• Company must be set up with the principal activity of buying and holding residential investment property and used for that purpose only in line with the appropriate SIC Code
• Certificate of Incorporation to be provided
• Latest set of accounts to be provided (where the company has been set up for more than 18 months)
• Regulated or Consumer buy to let not accepted.

Additional details for Expat Landlords

• The applicant must be a British Passport holder or have permanent rights to remain
• Regulated buy to let applications are accepted for individual landlords if the applicant has Sterling income. 
• All documentation* not in English will need to be translated by a qualified translator - e.g Bank statements, payslips and proof of address documents.
• No country restrictions – subject to list of sanctioned countries. 
• Mortgage offers are subject to the appointment of an acceptable individual or company that will be authorised to accept legal notices and court documents on the borrower's behalf in connection with the mortgage in England and Wales. Any individual appointed must meet the UK's approved countersignatory requirements. Family members are acceptable.  Please note this is a requirement of an offer and we will not proceed to completion without this.

* Please see our criteria for Expat document requirements