HMO Ltd Co BTL

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.