buy to let mortgages
Birmingham Midshires Buy to let Criteria in brief
Information on this page is for information purposes only. It is not intended as investment advice
Mortgage Criteria in brief
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- Borrowers must be homeowners – not first time buyers
- No minimum income, but Portfolio landlords will need to show earned income of at least £30k
- You will need a minimum 25% deposit
- Let to buy considered. Current home can be remortgaged as a buy to let providing there is a simultaneous purchase of a home to live in. Capital can be raised from the remortgage which can be used towards a deposit for the new property
- Buy to let remortgages can be considered after the property has been owned for at least 6 months
- The maximum loan is £1m
Birmingham Midshires Rental Calculation
Purchase, Let to Buy, remortgage with capital raising and further advances:
2 year fixed/tracker – 5.5% or pay rate + 2% whichever is higher.
5 year fixed – 5% or pay rate +0.5% whichever is higher.
(For further advances to qualify for 5 year stress rates the total loan, including all existing balances, must be fixed for 5 years or more at point of application)..
Like for Like remortgage (Buy to Let / Let to Buy):.
2 year fixed/tracker – 5.5% or pay rate + 0.5% whichever is higher.
5 year fixed – 5% or pay rate +0.5% whichever is higher.
Rental cover ratio’s (RCR).
All applicants are basic rate tax payers – 125%.
One or more applicants are higher / additional rate tax payers – 145%.
Note:
Higher / Additional rate tax payers are customers whose total earned income plus 80% share of the gross rental income for all properties that the applicant will own on completion exceeds £50,271 pa (£43,663 pa in Scotland).
If the application is for a Portfolio Landlord, the total portfolio (including the subject property) must achieve a minimum rental cover of 145% stressed at 5.5% and be no more than 75% LTV. (Minimum joint income of £30,000 pa).
For example
You are a basic rate taxpayer interested in buying a property with a mortgage loan of £100,000 using a 2y fixed rate at 5%
For a purchase the following rule applies….
2 year fixed/tracker – 5.5% or pay rate + 2% whichever is higher.
In this case the pay rate + 2% is higher, so use 7% in the calculation
The rent required is:
100,000 x 7% x 125% = £8750
or £727 pcm
If the rent is insufficient – contact us as this lender may be prepared to use surplus earned income towards any shortfall
Birmingham Midshires buy to let advantages
- Part of the Lloyds/Halifax/Bank of Scotland Group
- Birmingham Midshires will consider lending to Portfolio landlords with up to 10 properties in portfolio
- Buy to let remortgage applications with capital raising is acceptable for Portfolio landlords
- Competitive fixed rates
- Free basic valuation and standard legal fees paid on some remortgage products
- Corporate lets considered
- HMO property considered
- Inherited property considered
Birmingham Midshires buy to let restrictions
- Bedsits are NOT acceptable
- Maximum 5 Tenants on one AST agreement
- Maximum 5 properties within the Lloyds Banking group
- Birmingham Midshires do NOT offer Limited company buy to let mortgages
How to apply for a Buy to let mortgage with Birmingham Midshires
We can arrange a buy to let mortgage with Birmingham Midshires
Providing your mortgage is at least £100k there are NO Broker fees to pay
Please complete Your enquiry now!