buy to let mortgages

Godiva Mortgages

We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.

Godiva Buy to let Lending Criteria

Coventry BS/Godiva 

New Lending, Godiva House, Harry Weston Road,
Binley Business Park, Coventry,
CV3 2TB

Opening Hours:
Monday to Friday 9am to 5pm

Advances
Up to £750,000 (Remortgage only LTV 65)
Up to £1,000,000 (Remortgage only LTV 50)

Max LTV 75%

Notes
Illustration Type = ESIS. Mortgage is Portable
The product(s) selected are fully portable. Please refer to our ‘Moving your Mortgage to a New Property’ brochure for further information.
– Mortgage is NOT for First time buyers
These products are NOT available to portfolio landlords, please see our portfolio landlord product range for available products.

New Regulated Buy to Lets (where the property will be occupied by the borrower or a member of the borrower’s close family, now or in the future) are not acceptable.

Applications to re-mortgage a main residence to a Buy to Let basis are not allowed

A maximum term of 40 years is only available on mortgages backed by a pension, PEP or ISA. A maximum term of 35 years is available for all other acceptable repayment methods.
Customers will be asked how they intend to pay off the loan if the term will take them past the age of 65.

For Buy to let remortgages, Lender will only accept pound for pound applications. Lender will consider further advances on BTL properties but only for essential repairs to the mortgaged property.

One mortgage valuation fee is waived up to a maximum amount of £700 if the Lender instructs the valuer. In some instances different valuation assessments may be under taken. If applicable the actual fee you pay is shown in interest rates and other costs.

For this mortgage, you will, during the period where early repayment charges apply, be allowed to overpay by up to 10% of the mortgage balance outstanding, each calendar year without having to pay early repayment charges. The mortgage balance outstanding is taken at the 1 January or at the start of your mortgage, whichever occurred last.
During the period where early repayment charges apply, any payments above the annual limit will be subject to an early repayment charge on the basis shown in section 10 of this Quotation. If you repay your mortgage off in full you will be

charged early repayment charges on the entire outstanding mortgage balance required to redeem your mortgage. Following the period where early repayment charges apply, this mortgage allows you to make an unlimited amount of overpayments without incurring any early repayment charges.
Any overpayment using the direct debit overpayment facility will be applied to the mortgage immediately and interest recalculated. You will be advised of your revised repayment if applicable.

This mortgage is only available for Buy to Let properties

Please note that this product is offered by Godiva Mortgages Limited and not Coventry Building Society. You will not obtain membership rights in Coventry Building Society by taking a loan or mortgage from Godiva Mortgages Limited.

Buy to Let : Accepted, Max properties 3 

Capital Rest Period : Daily

Repayment Types
Repayment
Yes
Endowment Yes
PEP
Pension
Interest only (no RV) With Profits Yes Yes Yes Yes
Unit Linked ISA
Split Repayment Yes Yes
85% LTV

 

Fees

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

Higher Lending
None

Valuation Basic: Free

Min Valuation £75000
Product fee can be added to the loan.(Non-refundable) Application fee is payable up front.(Non-refundable)
One mortgage valuation up to the max £700, additional fees above this rate will be reduced. Only valuations conducted by the Godiva Mortgages Ltds panel of valuer’s are acceptable. You may have one mortgage valuation (up to a maximum of £700) which must be carried out by a valuer instructed by the lender. The valuation is for the Lender’s benefit only and used to confirm whether they can lend on the property. It’s important to remember that the Lender decides the type of valuation most appropriate to the application; therefore a physical inspection of the property may not be required.

Funds Transfer Fee – £8.00 Added to loan.
Mortgage Exit Fee – £125.00 Payable on early redemption.

 

Acceptable Property Types

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

Listed Building Yes

Right to Buy
Not Accepted

New Build acceptable.
Ex-local authority flats and maisonettes are restricted to 70% LTV. Will not lend on Freehold flats or Maisonettes.
Flats over certain types of commercial properties are restricted to 75% LTV.

Flats with more than 5 storeys are not considered, if they are ex local authority, or do not have lift access. Flats with more than 10 storeys are not considered.
All property, flying freehold not to exceed 25% of the total property.

Timber properties are not normally acceptable but Godiva Mortgages Ltd will consider modern timber framed properties provided they have an outer skin of brickwork.

Steel Frame houses and all types of property <10 years with no NHBC or equivalent properties are not accepted. Houses with 2 Kitchens and houses with no bathroom are not accepted.
The Godiva Mortgages Ltd will not lend in Isle of Man, Channel Island, Scottish Isles. Except Isle of Skye For purchase applications, the vendor must have owned the property for a minimum of 6 months.
The maximum loan to value for a new build or converted apartment/flat is 50% LTV.

The maximum loan to value for a new build house is 75% LTV (subject to product availability)

We define new builds as properties that have been built within three years of the mortgage application or are properties to be occupied for the first time. This includes apartment/flat conversions where the number of apartments/flats in the development exceeds ten.

Applications cannot be considered where the property offered as security is a self-build property or a self-build conversion, where the construction or conversion of the property is not fully completed at the time of application.

We will not lend to flats above or adjacent to workshops, restaurants, take-aways, public houses, sex shops, massage parlours and premises that stock explosive or toxic materials (fireworks, dangerous chemicals etc.).
We will not lend to flats above or adjacent to void/empty premises.
* ‘adjacent to’ includes properties within an ‘influential’ distance. This will be determined by the valuer.

Purchase applications are only allowed where upon completion the purchaser will obtain vacant possession of the property.
The property may normally be let to individuals on an assured shorthold tenancy basis or to companies on a corporate let, for a minimum term of 6 months and a maximum term of 12 months
For unencumbered or where there is less than £5,000 outstanding on the current mortgage the maximum LTV is limited to 50%.
Buy to Let Sale and Rent Back Scheme not accepted. New properties must have the benefit of either:
A Professional Consultant’s Certificate which are valid for the first 6 years or
An acceptable builder’s guarantee which is valid for the first 10 years

Secondhand properties less than 10 years old must normally have been built with the benefit of an acceptable Builder’s Guarantee scheme subject to the following exception:
Where the property was built or converted within the past 6 years, the case will be acceptable if it was built with the benefit of a Professional Consultant’s Certificate where cover was valid for the first 6 years.

A Professional Consultant’s Certificate must be for a minimum period of 6 years from the date the property was built.

Properties must be let on a single assured shorthold tenancy agreement to either a sole occupant, single family unit, a maximum of four tenants or let to a Corporate Body. Where the property is let to a Corporate Body (this includes educational establishments, housing associations or local authorities) the tenancy agreement between the Corporate

Body and the occupier(s) is a minimum of six months and a maximum of 12 months.

Applications where solar power panels are installed on the property being purchased or remortgaged are acceptable, subject to the valuer confirming the property is suitable security, and where the solar panels have a lease the acting conveyance confirming that the lease is acceptable.

We will now accept a property that is subject to an Additional HMO licence, subject to the standard policy.

For New and existing borrowers where the property is in a Multi-storey, multi-occupancy residential building (flats) with external wall systems (cladding) or external wall attachments (i.e. balconies) are only acceptable when an EWS1 form is satisfactorily completed by a suitably qualified professional.

Existing Customers – Further Borrowing with an unacceptable or no EWS1 form please refer to lender EPC:
BTL properties in England, Scotland & Wales are required to have an Energy Performance Certificate (EPC) rating of ‘E’ or above, unless they are exempt from the regulation. (England & Wales only)

Accepted Locations: England, Scotland, Wales

 

Requirements

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

Insurance
Buildings Conditional

Conditions On Loan
Min Loan /Rmg £25,001
Max Loan /Rmg £1,000,000
Max Portfolio of BTL Loans £2,000,000
Min Age 18 years
Max Age 85 years
Min Term 1 years
Max Term 35 years
Minimum age is 18 on application FTB are not permitted.
Please note that Godiva products cannot be submitted using a Coventry Application form. The maximum number of applicants is 4.
Refer to the Lender for Directors’ requirements.
Employment and income checks may be required, dependant on you client’s credit history.
Buy To Let Applicants must be aged 18 for the first applicant on a joint mortgage and a maximum of 85 at the end of the mortgage. The maximum age at application is 75.
Buy To Let not available to first time buyers.
Maximum aggregate BTL loan values with the Coventry group £2,000,000 (Individual BTL loan maximum £1,000,000) Buy To Let Properties to be let to individuals on an assured shorthold tenancy basis or to companies on a corporate let. Panel Solicitors only.
Maximum number of properties that can be held with all lenders is 10.
Maximum number of properties that can be held across the Coventry Building Society Group is 5. Lending to replace development finance is not acceptable.
Applications from applicants wishing to purchase properties in their own name for owner-occupation or Buy to Let purposes, from a limited company or a Limited Liability Partnership in which they have an interest is not acceptable.

Nationality and Right of Abode requirements:
Applications from non-EEA nationals with indefinite leave or a right of abode to live and work in the UK can be considered provided that:
None of the applicants hold any level of diplomatic immunity. Each applicant must have permission to live and work in the UK.
Each applicant must have been granted indefinite leave to remain or a Right of abode to live and work in the UK. A copy of the document confirming the right must be obtained and kept on file indefinitely.
Tenants must not hold any level of Diplomatic Immunity.

Where applicants are self-employed and the loan amount is >=£200,000 a 3 months personal bank statements are required.

Applications not paid in pounds sterling will not be accepted.
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Standard ID requirements:

Group A – to confirm who they are
-Passport (UK or foreign) – current, valid and full
-Valid (UK or EEA) photo card driving licence (full or provisional)
-EEA member state identity card
-Full old style paper driving licence (UK) – current, signed
-DWP pension entitlement letter – valid for the current year
-Birth certificate/adoption certificate (under 18s only)
-NHS medical card/document, showing holder’s name, DOB, NHS number (under 18s only)

Group B – to confirm their name and address
-Full or provisional UK photo card or old style paper driving licence – current, signed
-Bank/building society statement – less than 3 months old and not printed off the internet. Those issued by the Coventry are not acceptable
-House insurance certificate – valid for the current year
-Council/local authority tax bill – less than 12 months old and valid for the current year
-Utility bills (i.e. gas, electricity, water) or cable/satellite/phone bill (excluding mobile phones) – less than 3 months old and not printed off the internet
-NHS medical card/document, showing holder’s name, DOB, NHS number (under 18s only)
We will now accept a property that is subject to an Additional HMO licence, subject to the standard policy. The property must be adequately insured under an acceptable insurance policy.
Foreign Citizens Refer
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
Landlord Additional Rate Any Any 5 145

Min months in current position none
Min months in continuous service none
Min no. of years accounts 1
Average years taken to calculate income 1
Will consider declining profit Refer

Outgoings

Applicants must be employed, self employed or retired (or at least one applicant in joint situations).

– If the applicant is currently in a probationary period, the application may be considered provided the applicant has previously been employed in a permanent position for a minimum of 6 months and is now moving to a similar job.

If each applicant’s individual income is less than £49,000 (£42,500 in Scotland), including all gross income, total gross monthly rental income on this application and all other investments, and all applicants declare themselves to be a
non-taxpayer or basic rate (starter or intermediate rate in Scotland) the minimum rental income required is 125% of your client’s monthly mortgage interest payment on a reference rate of up to 5.5%*, based on the chosen product.

If any individual applicant’s income is £49,000 or more (£42,500 in Scotland), including all gross income, total gross monthly rental income on this application and all other investments, or if any applicant declares themselves to be a higher or additional rate (top rate in Scotland), the minimum rental income required is 145% of your client’s monthly mortgage interest payment on a reference rate of up to 5.5%*, based on the chosen product.

*Where the total loan has 5 years or more remaining on a Fixed rate product the reference rate is currently 5%. Self employed borrowers;

Directors

A director will be considered self-employed if they have a 20% shareholding or more in their company. Personal bank statements are required where proof of income is more than 12 months old.

Sole traders, partnerships and contractors

Latest year’s HMRC Tax Calculation plus the Tax Year Overview documentation are required for proof of income. The latest year’s Tax Assessment (SA302) are acceptable where the applicant(s) are unable to access their self-service HMRC requests. The documentation must show the latest financial year’s figures, which must be no more than 18 months old. Where more than 12 months old, applicants must also provide six months’ personal bank statements.

Self employed references only acceptable from the following accountancy bodies Institute of Chartered Accountants(ICA)
Association of Chartered Certified Accountants (ACCA) Chartered Institute of management Accountants (CIMA) Institute of Financial Accountants (IFA)
Association of Authorised Public Accountants (APA) Charted Institute of Public Finance & Accountancy (CIPFA) Chartered Institute of Taxation(CIOT)
Association of International Accountants (AIA)

Car Allowance is an acceptable form of income provided it is an integral part of the salary package and that it is not a refund of expenses already paid out by the applicant.

UNACCEPTABLE SOURCES OF INCOME:
Income from temporary employment Child/working family tax credits Disability allowances
All other state benefits
Maintenance (including court ordered) Bursaries and other educational subsidies Foster income
Rental income where it is secondary income, expect where the applicant can confirm that the income is derived from a business, can provide 2 years accounts (1 year Buy to Lets) or two SA302s and meet all other self employed criteria. Rental Income where the rent will be paid by the DWP, formally known as DSS.
Please note that this list is not exhaustive and any similar income source may be declined. Applicants can be Self employed (min 1 year) or Retired with a Private pension.
Retired Applicants 100% of state and private pension may be used when calculating admissible income. Total admissible income is made up of total gross income minus a deduction for ongoing liabilities.

Documents required for validation: Private Pension
– At least 2 months bank statements
– Latest pension slip
– Latest annual statement from the pension provider State Pension
– Latest 2 months bank statements
– Latest annual letter from the Department for Work and Pensions
-Copies of the front and first two inside pages of the applicants pension book.

Income from Umbrella companies:
Coventry Building Society will potentially consider contractor income that is paid via an umbrella company. Applicants paid via an Umbrella company are acceptable subject to meeting our Daily Rate contractor or Contracted personnel criteria.

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 Taken into account Extra Income:-
Other Income – Guaranteed Add 100% to income before multiply

Other Income – Regular No
Other Income – Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments No
Non Contributory Pension Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

 

Remortgage 

Capital Raising 65%
Home Improvements Acceptable
Debt Consolidation Not accepted
School Fees Not accepted
Holidays/Cars Not accepted
Buy Other Property Acceptable
Business Purposes Not accepted
Divorce Settlement Refer to Lender
Unencumbered Acceptable

Offer validity is 6 months from application.

Capital raising / Remortgage + Capital raising on BTL – subject to acceptable borrowing purposes Acceptable up to 75% LTV
Adverse Credit
CCJs/Defaults : Accept:
1) Max £250.00 in Defaults unsatisfied. This condition does not incur any rate loading.
2) Max £250.00 in CCJs unsatisfied. There must be no CCJs in the last 6 months. This condition does not incur any rate loading.
Arrears : Accept:
1) Max 1 missed payment in the last 36 months, which may be unpaid at the time of application. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading. Repossessions: Not accepted.
CCJs over 3 years old considered on an individual basis. Defaults on Mortgages and secured loans must be satisfied