Our HMO Limited Company Buy-to-Let products are available for landlords operating via a UK registered limited company to purchase or remortgage a HMO property.
Eligibility and applicant criteria
- 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
- All Shareholders in the Company must be named as Directors
- Maximum of 4 Directors – individual credit checks will be undertaken
- Details of all properties each Director has an ownership in (either in own name or a business name) must be provided
- Regulated or consumer buy to let not accepted
- For unexperienced landlords accepted. At least one applicant must meet the minimum income requirement of £50,000.
Loan, Fee and product details
- Maximum loan size £3,000,000. Loans over this are priced on a bespoke basis and have restricted LTVs
- 5 Year Fixed Rates: Rental Cover 125% of pay rate
- Rental Cover on debt for debt re-mortgage cases 125% of pay rate. Fees can be added to the loan for debt for debt remortgages
- Personal Guarantees for total borrowing (inclusive of fees) taken from all Directors for applications exceeding 55% LTV
Property requirements
- Minimum energy performance rating of D on an Energy Performance Certificate (EPC)
- Minimum Property Value: £150,000
- Property must be let on an AST basis
- Student Lets accepted
- Some or all tenants share toilet, bathroom or kitchen facilities
- MUB not accepted
- Up to 6 bedrooms acceptable
- Unlicenced HMO accepted unless license mandated by Local Authority
- Maximum number of kitchens for standard properties: 1
Affordability and income criteria
- Rental assessment is based on AST rental valuation
- 5 Year Fixed Rates: Rental Cover 125% of pay rate
- Rental Cover on debt for debt re-mortgage cases 125% of pay rate
- For unexperienced landlords accepted. At least one applicant must meet the minimum income requirement of £50,000.