Skipton Mortgage lending criteria

Skipton BS
Principal Office The Bailey Skipton
North Yorkshire BD23 1DN

www.skipton.co.uk

Skipton Buy to let

Advances

Up to £1,000,000 60% LTV

Max LTV 75%

Notes
Illustration Type = ESIS.
Mortgage is Portable, Mortgage is Flexible, 10% Overpayments allowed per year.
You can keep your product should you move to a different property subject to our normal lending criteria. If you wish to change the terms of the mortgage during any early repayment period (for example switching to another product) then any early repayment charges will be payable. This is subject to conditions; see the Mortgage Guide for details.
– Mortgage is NOT for First time buyers

Where the product offers free legals for remortgage, the free legals are NOT available for additional borrowing. Any products that have any cashback are not available for additional borrowing.
Brokers need to be directed to e-mortgages to obtain an illustration (as the illustration will need to take into account the customer primary account details).
Maximum of 10 properties allowed per BTL portfolio, maximum portfolio loan of £3m.

All quoted rates assume payment by direct debit. If payment is not via direct debit the rate will be increased by 0.25%.

First time landlords are acceptable provided they have owned their own residential property in the UK, and had/has at least 6 months mortgage experience with evidence available when required. This would apply to Joint applicants where a First Time Buyer is accompanied by an existing owner.

Payment Holidays Allowed. You may take a payment holiday subject to conditions. Please see the Lender’s Mortgage Guide for details.

The Society will pay a maximum of £1271 towards the standard valuation fee, which includes the valuation administration fee where the property value is £1,500,000 or below. If the property is valued above £1,500,000 some fees may be payable. This incentive does not apply where your existing mortgage is with the Society and the remortgage taking place because of a Transfer of Equity.

Overpayments of up to 10% per annum of the original loan amount can be made to repay part of your mortgage.
If the product has no ERC’s, unlimited overpayments are allowed, otherwise, overpayments of up to 10% per annum of the original loan amount can be made to repay part of your mortgage.

This mortgage includes a facility for additional secured borrowing. Additional borrowing can be applied for on any of Skipton’s Remortgage or Retention products.

Buy to Let : Accepted, Max properties 10 Capital Rest Period : Daily

Repayment Types

Repayment Yes
Endowment Yes
PEP No
Pension No

Interest only (no RV) With Profits Yes Yes
Unit Linked ISA
Split Repayment Yes Yes Yes

Fees

Arrangement : Booking : £varies Can be Added None
Early Repayment Charges
varies

Higher Lending
None

Valuation Basic: Free

Min Valuation £50000
Fees payable at application or completion (whether paid up-front or added to the loan) are non-refundable.
After the end of the initial tie in period, interest is calculated daily until the date of redemption or product transfer. If a mortgage with the lender on a new property is taken out simultaneously this charge will be waived subject to all the Lenders lending criteria being met at that time.

There is an administration fee included in the fee above. Re-inspection Report Fee £40.
Up to date Report Fee £60.
For remortgage only where the debt consolidation amount exceeds £50,000: There is a fee of £50 +VAT payable to the solicitor for each credit card/loan repaid, (N/A to additional borrowing applications)

Lender Conveyancing Fee – £105.00 Payable on completion. A non-refundable legal fee will be payable to the conveyancer on or before completion of the loan. The figure quoted here is an estimate for the mortgage work only and the total fees for the conveyancing may be higher. You should discuss this with your conveyancer
Redemption Administration Fee – £95.00 Payable on redemption.
Funds Transfer Fee – £6.00 Added to loan. This fee is not applicable for a Product Transfer.

Acceptable Property Types

Freehold Flat Refer
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Yes
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Refer
Timber Framed Refer
Concrete Refer
Agricultural Tie Yes
Flat Over 4 Storeys Yes
Listed Building Yes

Right to Buy
Not Accepted

New Build acceptable. Single Skin Construction – Refer

All flats and maisonettes must be leasehold (Feuhold in Scotland) with a minimum unexpired term of 85 years at completion of the mortgage.

Leasehold flats where the borrower will also own a share in a management company that owns the freehold are acceptable.

Freehold flats are not acceptable. The only exception to this is the purchase of freehold flats in Scarborough. Tyneside

flats where there are reciprocating lease/freehold arrangements are also acceptable.

Flats over 4 storeys are acceptable, but where storey height exceeds 5 floors access to a lift is required. New Build flats are not acceptable for BTL loans, but new build flats can be considered.
A new build is defined as:
Any property that has been newly constructed or converted and is being sold for occupation for the first time.
Any property newly built or converted within the current calendar year (that commenced 1st January) or the last 2 previous calendar years.
For clarification on acceptable New Build Incentives please refer to lender.

Space 4 System – is generally acceptable and in each case suitability for lending purposes dependant on valuer’s comments

Minimum property values apply to all non-standard flats * ( £150,000 / £300,000 in Greater London)

* Non- Standard flat defined as; Studio Flat , Flat with Retail/Commercial Unit within development, Ex Local Authority Flat, Deck Access Flat or Flat with Mezzanine/Galleried Floor. LTV restrictions continue to apply where applicable by lending type (e.g. New Build, Shared Ownership, BTL).

Solar Panels – Where the solar panel provider is creating a lease the maximum LTV is 50% and the property value must be a minimum of £100,000. For further information please refer to Lender’s website www.skipton-intermediaries.co.uk

Accepted Locations: England, Scotland, Wales

Requirements

Bank Statements 1 months
At Least 3 Months Pay Slips No
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions On Loan
Min Loan £5,000
Max Loan £1,000,000
Max Portfolio of BTL Loans £3,000,000
Min Age none
Max Age 85 years
Min Term 5 years
Max Term 35 years
£20,000 Gross minimum acceptable earned income for non-portfolio landlords (where application is in joint names the main earner must have a gross minimum acceptable earned income of £20,000). Portfolio landlords will require a minimum income of £45k (for the main earner if joint application) or combination of £60k.

Non-portfolio Portfolio landlord and lower rate tax payer affordability will be stressed at 125% @ 5.5% (5% for 5 year fixed rate terms) on the rental income. Portfolio landlord and higher rate tax payer affordability will be stressed at 145%
@ 5.5% (5% for 5 year fixed rate terms) on the rental income

Portfolio landlords will require a minimum of 2 years’ Buy to Let experience

A max term of 35 years will be considered on a Capital & Interest basis and 25 years on ILA and Part & Part as long as the maximum age does not exceed 75 years.

Contract Workers: Normal affordability rules apply subject to the following:-
– Must be a loan for their main residence for their own occupation.
– Must be a UK resident or have indefinite leave to remain.
– Contract must be for at least 12 months.

Skipton will consider applications from foreign nationals and normal lending criteria applies with the addition of a max LTV of 70%

Minimum 6 months continuous employment

Let to Buy 

criteria:
– For the new residential purchase in a Let to Buy scenario, we will allow capital raising on the existing property as a source of deposit.
– We will accept Buy to Let remortgage applications on a client’s existing property to be let out up to 75% LTV, based on our standard Buy to Let criteria.

Acceptable tenancy types for Buy To Let is as follows:
– The following tenancy types will be considered as acceptable for Buy to Let applications: sole occupants, single family units, students and professionals (professionals are defined as individuals in paid occupations).
– Properties to be occupied by students or professionals must be limited to a maximum of 4 tenants.
– Applicants who wish their properties to be occupied by students or professionals must have previous experience as a landlord.
– Single and multiple Assured Shorthold Tenancy Agreements will be acceptable.

Buildings Insurance must be maintained throughout the lifetime of the mortgage. If you take out a combined Buildings and Contents policy this condition will be satisfied.
Foreign Citizens Not Accepted Ex-Patriates Not Accepted

Income Multipliers

Landlord Type
Tax Band
LTV
Loan Size
Interest Rate %
Cover Level %
Landlord Basic Rate Any Any 5 125
Landlord Higher Rate Any Any 5 145
Portfolio Landlord Basic Rate Any Any 5 145
Portfolio Landlord Higher Rate Any Any 5 145
Portfolio Landlord Additional Rate Any Any 5 145

Min months in current position 1
Min months in continuous service 6
Min no. of years accounts 2
Average years taken to calculate income Will consider declining profit 2
Yes
Outgoings
Minimum Income £20,000 pa required. Where there is a joint application the highest earner must have a minimum income of £20,000.

£20,000 Gross minimum acceptable earned income for non-portfolio landlords (where application is in joint names the main earner must have a gross minimum acceptable earned income of £20,000). Portfolio landlords will require a minimum income of £45k (for the main earner if joint application) or combination of £60k.

Non-portfolio Portfolio landlord and lower rate tax payers rental income must cover: 125% x 5% Standard Rate Tax Payers with a product term of 5 years or more.
125% x 5.5% Standard rate Tax Payers with a product term less than 5 years.

Portfolio landlord and higher rate tax payers rental income must cover: 145% x 5% Higher Rate Tax Payers with a product term of 5 years or more. 145% x 5.5% Higher Rate Tax Payers with a product term less than 5 years.

Background properties rental income must cover: 135% x 5/5.5% All Background BTLs.

There is an expectation that landlords have sufficient personal disposable income to cover any voids, maintenance or any other expenditure on their buy-to-let property or portfolio.

Portfolio Information:

Maximum of 5 properties with the SBS group to a maximum value of £3m. Maximum of 10 properties held in total (including properties with other lenders). Maximum 4 tenants

Minimum Income – Single £20000 Minimum Income – Joint £20000

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account Extra Income:-
Other Income – Guaranteed Refer to Lender
Other Income – Regular Add 50% to income before multiply
Other Income – Irregular No
Investment Income Refer to Lender
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Refer to Lender
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Adverse Credit

CCJs/Defaults : Accept:
– Max 2 Defaults to a max of £1,000.00. These must be fully paid at least 12 months ago or over prior to application. There must be no Defaults in the last 12 months. This condition does not incur any rate loading.
– Max 1 CCJs to a max of £500.00. These must be fully paid at least 12 months ago or over prior to application. There must be no CCJs in the last 12 months. This condition does not incur any rate loading.
Ignore:
– CCJs registered 36 months ago or over.
– Defaults registered 36 months ago or over. Arrears : Accept:
1) Max 2 missed payments in the last 24 months. This condition does not incur any rate loading.
2) Max 1 missed payment in the last 12 months. No arrears (paid or unpaid) in the last 6 months. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) IVA must be discharged at least 4 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 4 years prior to application. This does not incur any rate loading. Repossessions : Not accepted.

No more than 2 defaults within the last 3 years. Neither of which can exceed £500. Defaults must have been registered over a year ago, but just need to be showing as satisfied at application.
Arrears: No more than 1 missed payment within the last 12 months, with the latest 6 months being up to date and not to have exceeded 2 months in the last 2 years.
Bankruptcy and IVAs – not generally acceptable but a referral can be considered if the bankruptcy has been discharged
for at least 48 months