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Mortgage Trust Buy to let Lending criteria

Mortgage Trust Buy to let Lending criteria

Mortgage Trust - Buy to let Lending criteria

Notes: The following information may contain errors. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

Mortgage Product


Advances
Up to 500,000 (Remortgage only LTV 75)
Up to 1,000,000 (Remortgage only LTV 70)

Notes
Mortgage NOT portable
You must repay the full balance outstanding on the loan together with any early repayment charges and fees
- Mortgage is NOT for First time buyers


Free Legal for remortgages - certain schemes only


We will not consider applications where the applicant is purchasing from an associated limited company or connected party.

Product is subject to availability of funds and withdrawal at any time.

At least one applicant must be employed or self-employed as defined below.
Employed applicant(s):
Applicant(s) must be in permanent non-probationary employment. Applicant(s) on long term contract work will be considered on an individual basis.

Self employed applicant(s):


Applicant(s) who work on a subcontract basis will be treated as self employed.
An applicant will be classed as self employed where the individual owns 20% or more shareholding of the company or is employed by a family business.
Applicant(s) must have been trading in their present business for a minimum of 2 years.

Where the identity of all applicants cannot be established through the underwriting process, proof of identity verified by the solicitor or mortgage broker will be required. For Accepted accountancy institutes please refer to Lender.

The Lender reserve the right to request additional information or references such as an accountant’s reference, employment reference, mortgage statements or a bank reference. Such information may be renewed if completion does not take place within 6 months of them being obtained.


Free valuation

Free Legals - Remortgage - certain schemes only - Mortgage Trust will nominate and instruct a legal advisor in respect of the remortgage. Any additional work, carried out, at the borrowers' request that incur costs, are payable by the borrower.

You are not allowed to make overpayments with this product.

Buy to Let : Accepted
Capital Rest Period : Quarterly

Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes

Fees


Arrangement : varies
Booking : varies

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
Free

Min Valuation 75000
At completion we require a valuation report no older than 3 months. If a re-valuation is required this will be at the applicants expense.


Funds Transfer Fee - 50.00 Payable on completion.
Insurance Admin - 25.00 Payable on completion.
Deeds Release Fee - 90.00 Payable on redemption.
Sealing Fee - 150.00 Payable on redemption.
Administration Fee - 150.00 Payable upfront.

Acceptable Property Types


Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Refer
Studio Flat Refer
Flying Freehold No
Thatched Consider
Timber Framed No
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Refer

Not Accepted
New Build acceptable.
A lending limit of 1,000,000 and no more than 5 properties applies across all Paragon Group mortgage products

We will take a first legal charge and will only consider single self contained properties in England and Wales.

Houses in Multiple Occupation and multi-unit blocks are not acceptable.

Let property
Property may either be let:
- on an assured shorthold tenancy subject to a minimum term of 6 months and a maximum of 12 months
or
- to a limited company registered in England, Wales or Scotland for up to 3 years or to a local authority or housing association for up to 5 years provided it is subsequently occupied by a private individual or individuals whose rights of occupation do not extend beyond the term granted to the acceptable tenant, (in both cases being pre-approved by us and being on appropriate terms).

Property shall not in whole or in part be let to or occupied by:


- the applicant, or any member of their family
- the guarantor, or any member of their family
- the vendor of the property, or any member of their family
- any previous owner of the property, or any member of their family
- an employee of the applicant
- an associated subsidiary, or parent company of the applicant


Sale-and-rent-back arrangements are not acceptable.
Holiday lets are not acceptable.
Where a tenancy agreement pre-dates the completion of the loan then the solicitor acting must ensure that our interests are fully protected.

Property exclusions


Property is unacceptable if it is:


- a freehold flat or maisonette in England and Wales
- designated as defective under any housing legislation
- subject to agricultural or other planning restrictions
- subject to notice of mineral extraction, contaminated land or previous mining subsidence and landfill
- ex-local authority flats and maisonettes
- being purchased under the right to buy scheme
- built within the last 10 years without an NHBC certificate or other guarantee acceptable to us
- non-traditional construction such as concrete or timber or where existing or possible structural defects are apparent
- a shared ownership property
- located within either 10 metres of an electrical sub-station or 100 metres of an overhead high voltage cable or communication mast.
- a flat in a block over 4 storeys high (except within Greater London)
- a studio flat, under 30 square metres
- a new or recently built flat where there is, or is likely to be, a low demand from tenants
- a property which is attached to, or is, part commercial
- a property with an element of - flying freehold
- a self-build property
- a property with restrictions relating to sale or occupancy e.g. section 106 notice
- a property subject to chancel repairs/liability
- a property subject to issues identified by an environmental search
- a converted flat where the applicant occupies a property in the same building.

Occupation

Depending on the specific conditions of each loan, the property must either be occupied by acceptable tenants, or may be vacant between lettings for up to 90 days, subject to the terms of the insurance cover being complied with.

Ex local Authority houses can be considered by exception (ex-local authority flats/maisonettes are not acceptable)

Accepted Locations : England, Wales

Requirements
Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency No
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions

 
Min Loan /Rmg 30,000
Max Loan /Rmg 1,000,000
Max Portfolio of BTL Loans 1,000,000
Min Age 21 years
Max Age 80 years
Min Term 5 years
Max Term 25 years

New build is accepted subject to terms and conditions please refer to Lender before submitting an application.

Applications will be considered for a maximum of two individuals who should all have been resident and liable to tax in the UK for a minimum of the last 2 years.

All applicant(s) must have indefinite leave to remain in the UK. At least one applicant must be the owner of a residential property or residential investment property.

The applicant(s) should not be over 80 years of age at the end of the mortgage term.

Where the identity of all applicants cannot be established through the underwriting process, proof of identity verified by the solicitor or mortgage broker will be required.

Applications will not be accepted where the property is being purchased or refinanced through, or where the applicant is in anyway connected to, a property investment club or syndicate.

Proof of the source of the deposit may be requested. Where the applicant(s) are not providing the whole of the balance of the purchase price from their own funds, full details must be provided on the application form for consideration by us.

It should be noted that property sales between corporate entities that are part of the same group or have common directors, are not normally acceptable.

A total mortgage exposure per borrower of 5,000,000 may be advanced to an applicant on a property portfolio.

The property must be adequately insured under an acceptable buildings insurance policy in accordance with the Paragon Mortgages 2010 Ltd Mortgage Conditions.
You are not required to buy any insurance through Paragon Mortgages 2010 Ltd, but a single fee of 25 will be charged for reviewing your buildings insurance policy.
Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income


Rental Income must be 125% of the monthly mortgage payments

Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer

Outgoings

A minimum income of 25,000 (single or combined) is compulsory.

Applicant(s) income can include:
- gross employment income.
- taxable self employed income.
Income from renting property cannot be included.

In respect of self-employed income:
Last 2 years accounts prepared by a qualified member of an accountancy body acceptable to Paragon or last 2 years self-assessment tax returns plus HM Revenue and Customs (HMRC) approval form SA302 or SA300 (if HMRC calculated) or SA310 (if self-calculated).

The gross rental income from the property is subject to an absolute minimum of 125% of an interest only loan payment calculated at 5% or the product charging rate if greater.

Applicants may be subject to validation of the income requirements detailed above. Intermediaries should obtain and hold on file proof of income in all cases.

Applicant(s) must be in permanent non-probationary employment.

Minimum months in current employment please refer to Lender.

Minimum months in continuous employment please refer to Lender.


Rental Income must be 125% of the monthly mortgage payments
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed No
Other Income - Regular No
Other Income - Irregular No
Investment Income No
Mortgage Subsidy No
Large Town Allowance No
Maintenance Payments No
Non Contributory Pension No
Car Allowance No

Remortgage


Capital Raising 75%
Home Improvements 75%
Debt Consolidation Not accepted
School Fees Not accepted
Holidays/Cars Not accepted
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement Not accepted
Unencumbered 75%


Where the applicant(s) has been the registered owner(s) of the property for less than 6 months, the loan amount will be based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works which have enhanced the property value have been carried out. In all instances, the property must be registered at the Land Registry as owned by the applicant(s), at the date of application.

Acceptable capital raising purposes for remortgages are all purposes concerned with owning and renting of residential property.


Adverse Credit


CCJs : Not Acceptable
Defaults : Not Acceptable
Arrears : Not Acceptable
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable