Applications from customers employed on a Construction Industry Scheme (CIS) Contract will be considered. The Buy to Let property address must not be the same as the applicant(s) correspondence address. Therefore, should the The lending criteria for residential mortgages from Kent Reliance for Intermediaries could help you place that tricky case. If the property is in Scotland, the landlord must register with the relevant Local Authority. more details. be verified by the documentation from the Immigration and Nationality Additional Information: Builder Cash Incentives. Latest payslip,(this applies whether the applicant is paid weekly or monthly). The following details must be visible on the online Tax Calculation: Tax year (most recent no older than 18 months old), and the following wording: "This is a copy of information held on your official online SA tax account with HMRC", and "Submission is 100% complete.". Any BTL property cannot be let to a family member. If the property being purchased is not changing but an amendment is required to the address keyed e.g. Our charge must be registered on the freehold of the whole building and the leasehold interest of the unit. mortgage we will use the above stress rate or 2% above the Affordability and Sustainability Cash incentives in excess of this amount may result in a reduction in the maximum loan available. Our rental calculation is based on 125% of the mortgage interest at initial product pay rate + 2% or 125% of the mortgage interest at a notional / stress rate whichever is higher for products less than 5 years. Please note that only products within the same range can be compared. Probate must have been granted prior to application and written confirmation of the inheritance of the property and grant of probate will be required from the customer's conveyancer. This enables you to help us understand the full The eldest applicant on the application cannot exceed age 75 at the time of the application and age 80 at the end of the term. Any recent large or unusual deposits into the account will require clarification to ascertain proof of origin. All valuations completed at no cost to the customer are not able to be appealed with the valuer, the original valuation figures will remain. Applications involving finder's fees are not acceptable. For IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum: whether employed or self employed, we accept the gross value of the contract as evidence of income. Length of employment/self-employment For the use of mortgage intermediaries & other professionals only. Self-employed/Contractors For example: If completion occurs on the 15th, interest is calculated from the 15th to the end of the month and then added to the first payment. IMPORTANT - Northern Irish law states that solicitors appointed by the Lender are not the information contained on this site, to be used with or to advise private clients, For all Buy to Let applications, apart from remortgages, the source of deposit must be captured and evidence must be retained. An early repayment charge will apply if your client takes a product transfer or repays some or all of their mortgage during the early repayment charge period. The value of your client's home may alter with market conditions so that the amount of the loan may exceed the value of the home. Where funds have originated from a Business Account, you must obtain confirmation from the accountant that the withdrawal will not have a negative impact on the business. Directorate. For portfolio customers, the Gross Monthly rent will need to be keyed into the Property Schedule Screen for each property in the portfolio. Applications will be considered from Professional Sports People where either continuous employment of 12 months or more with 6 months of the contract remaining or 2 years continuous service (for the last two years as at the date of application) in the same type of employment can be confirmed. At least one applicant must be employed, self-employed or retired, Proof of all income must be obtained and retained on file, Evidence of Gross Monthly Rent for existing BTLs must be keyed, If we request income confirmation please submit proof of all earned income and evidence of rental income, see our, We don’t accept foreign currency income – source of income must be within the UK and the customer must be registered for UK tax, Other taxable income on payslip – annualise and include in basic income, Investment income - key annual income from tax year overview, Benefits – key annual income from latest benefit statement. Latest 3 months' bank statements for the account which is used for business purposes may be required. Customers should be treated as self employed if they pay their own tax or sub contract to more than one company. 14.03.16 Written by Jeni Browne. no cost for property assessment and free legal service. Form (pdf, 666kB), Mortgage Free Properties (Unencumbered properties), Tax year overview and tax year calculations, Latest years 2 figures (latest must be within 18 months), Latest Pension Statement/latest bank statement and latest P60, Latest pension statement figure or annualise monthly figure from bank statement if gross, Latest years figure (latest must be within 18 months), We do not require evidence to be kept on file. P60/Payslips If no income is received or the customer is unable to provide evidence of income then ‘zero’ income must be used for that month. First Time Buyers are not eligible for Buy to Lets or Let to Buys. Under the BTL Landlord tax rules which took full effect in April 2020, finance costs will not be tax deductible but tax relief can be claimed at the basic rate, whatever rate of tax the customer pays. Applications which involve assignable contracts or irrevocable powers of attorney in favour of intervening sellers are not acceptable. Use Two-year fixes have been cut at the 60 per cent and 75 per cent LTV bands, while five-year fixes have been reduced at 75 per cent LTV. Self-employed applicants A maximum 75% LTV for loans from £25,001 to £1,000,000. mortgage-free property. Where a Tenancy is due to commence the customer must have a Tenancy agreement confirming the expected rental income and the start date must be within 14 days of the application. The first monthly payment includes an amount of ‘Initial Interest’ from the day of completion to the end of that month plus the first monthly mortgage payment. A finder's fee is a fee or commission paid by a seller to a third party (such as an investment club) for finding or introducing a buyer. Let to Buy products are not portable. A Business Buy to Let (BBTL) is a mortgage used to purchase/remortgage a property that is/was purchased with the intention to let to a non-family member or where the applicant is a professional landlord and has other BTL properties let out. For certain applications, deposit verification will be requested. If there is a difference in the tax figure we will consider these but may require updated documents. Additional Information: Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment. remortgage service is not available with some of our remortgage products and your If you do not have professional experience, you should not rely on the information Second Job properties that are on the old Sasine register. Our rental cover calculation provides for an excess of rent compared to the actual mortgage payment to enable the landlord to cover such eventualities. the information contained on this site, to be used with or to advise private clients, Sufficient and accurate information must be recorded on our application system. The maximum tenancy term is 12 months although a maximum tenancy of 5 years is acceptable when the tenancy is in the form of a Department for Communities and Local Government (DCLG) model agreement of September 2014 (or as amended) or the Scottish Equivalent. Remortgage and Capital Raising able to provide any additional services to the customer. How long has the customer been in You should contact us to make this change. There is no requirement to complete a Direct Debit mandate form, but details must be provided before the offer will be issued. Rental Income. If completion occurs on the 5th, interest is calculated from the 5th to the end of the month and then added to the first payment. Latest 3 months' bank statements for the account which is used for business purposes may be required, IT Contractors - providing 12 months or more continuous employment with 6 months of the contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment. Contractor - If applicant earns more than £500 per day or £75,000 per annum - providing 12 months or more continuous employment with 6 months of contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment. Please also check our Portfolio Landlord calculator to check whether your client’s existing portfolio and new application meet our criteria. the borrower is buying the property from someone who has themselves bought the property less than six months before. Last 2 years Tax Calculations and corresponding Tax Year Overviews or Last 2 years finalised accounts Where the customer has been trading for less than 2 years, a minimum of 1 year’s accounts will be considered. The property must not be subject to occupancy restrictions. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. It is not acceptable to hold the freehold in a Ltd company with the customer as sole director, majority shareholder or with any family member, It is only acceptable for the customer to own one unit in the whole building, including any new applications, Our charge must be registered on the leasehold interest only. Both must show at least one of the applicants' names. product changes effective from monday 17th may 2021. The minimum loan amount is £25,001 and maximum £1 million. Tax on Rental Income Telephone calls may be monitored or recorded. Following market research into the requirements of contemporary landlords and their buy to let mortgage needs, BM Solutions has revised its criteria to allow for longer-term tenancies of up to three years. BM Solutions announce two new products for Buy to Let purchases only. On a porting or product transfer application any Early Repayment Charge which may apply on your customer’s current mortgage product will be waived if the product has 3 months or less to run. Additional Information: Both must show at least one of the applicants'. BM Solutions provide mortgage applications for the following: A maximum of 4 applicants are allowed on one application, Additional Information: First Time Buyer / First Time Landlord. These are not included in the count of mortgaged BTL property, but must be declared on the Property Schedule section of the application and in the Portfolio Landlord section on the Mortgage Portal and will be included within the assessment of aggregate LTV and Rental Cover Ratio. Properties with F or G EPC rating are only allowed where a registered exemption is in place. The eldest applicant must submit the application before their 75th Birthday as we cannot exceed age 75 at the time of submission and age 80 at the end of the term. HIGHEST product rate – whichever is highest. This means lenders will consider the individual transaction and the overall customer portfolio position. Additional Information: The Credit History question should be answered as ‘Yes' if any customer has had a Bankruptcy / IVA / Debt Management Arrangement or Debt Relief Order which was: If a Bankruptcy / IVA / Debt Management Arrangement or Debt Relief Order was registered over 6yrs ago and is no long outstanding, the question can be answered as ‘No’, Additional Information: they are on our panel of conveyancers, and your customer must pay the legal charges, Written confirmation from the certifier stating "I hereby certify that this is a true and correct copy of the original document as sighted by me" (variations are acceptable). Contracts - Fixed / Short / Temporary - If Company Paying Tax (Excluding CIS contractors) - providing 12 months or more continuous employment with 6 months of the contract remaining OR 2 years continuous service (for the last 2 years at the date of the application) in the same type of employment, Contracts Fixed / Short / Temporary - If Customer Paying Tax, Last 2 years Tax Calculations and corresponding Tax Year Overviews or Business / Company accounts Where the customer has been trading for less than 2 years, a minimum of 1 year's accounts will be considered. Income Types Whilst a fixed rate mortgage can give your client certainty around monthly payments, the Bank of England Bank Rate may go down as well as up. Building Standards Indemnity Scheme from a warranty provider accepted by Lloyds Banking Group: Premier Guarantee - includes the LABC New Homes Warranty and LABC Hallmark Scheme, International Construction Warranties (ICW). For higher and additional rate tax payers, the calculation will be based on 125% of the rental cover after any additional tax liability has been taken into consideration. Where no date is available on the certificate, adequate proof that this was requested within the last three months is acceptable (either from the Land Registry or the solicitor), or, Land Registry certificate dated within the last three months. Self-employed applicants, Additional Information: The date of registration at the Land Registry is how we determine the length of ownership. connection with repaying their current mortgage. BM Solutions has clarified its portfolio lending criteria ahead of new underwriting standards taking effect from 30 September 2017. 1.86% 2 years fixed up to 75% loan to value. Ensure that you select the correct applicant’s party to each of the existing BTL’s. If we need this, we will ask for it before the case completes. E.g. resident in the UK and should not be regarded as an offer or invitation to sell Foreign currency income paid into a UK bank account and subsequently transferred to sterling is still considered to be foreign currency. costs for transferring from the Sasine register to the Land Registry within the There should also be no separate tenancy agreement in place with respect of the annexe accommodation. Additional Information: Latest 3 months’ bank statements for the account which is used for business purposes may be required. There are two categories of Buy to Let; Business Buy to Let (BBTL) and Consumer Buy to Let (CBTL), both of which are available through BM Solutions. Bankruptcies. The BM Solutions Hub; How to create brand strength and a memorable experience – McDonald. This must show at least one of the applicants' names. 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