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 also 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.

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
• 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 not accepted

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.