buy to let mortgages

Santander Buy to let

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.

Santander Buy to let Lending Criteria

The notes listed below show some of the lending criteria for Santander. You should NOT rely on this information. Please contact us to discuss your Enquiry

 

These pages were last updated on 12th March 2022

Advances

Up to £750,000 (Remortgage only LTV 75)

Notes
Illustration Type = ESIS.

Mortgage is Portable

If you move house you may be able to transfer this mortgage to another property as long as you meet the conditions set
out in the mortgage conditions booklet under ‘Transferring your loan to a new mortgage`. All offers need to meet
Lender’s normal lending policy

Offers are subject to availability and may be withdrawn at any time
Lender reserves the right to withdraw the Fixed/Variable Tracker/Capped / Rate and reclaim the cashback if the property
is no longer owner occupied or the customer does not comply with the conditions of their mortgage.

The mortgage must remain with the Lender until the charge end date or a charge will apply. If the benefit end date is
before the charge end date, the mortgage must remain at the appropriate Tracker rate until the charge end date.

– Mortgage is NOT for First time buyers

Arrears:

Arrears are not acceptable within last 12 months

General Conditions:

All offers need to meet Lender’s normal lending policy
These offers are subject to availability and may be withdrawn at any time
Lender reserves the right to withdraw the Fixed/Variable Tracker/Capped / Rate and reclaim the cashback if the property is no longer owner occupied or the customer does not comply with the conditions of their mortgage.

The mortgage must remain with the Lender until the charge end date or a charge will apply. If the benefit end date is
before the charge end date, the mortgage must remain at the appropriate Tracker rate until the charge end date.

Residency:

Resident in the UK with permanent rights to reside in the UK;

Maximum of two applicants.

Portfolio Landlords – remortgaging:

We only consider portfolio landlords if the application is a remortgage without capital raising (£4£).
We don’t accept portfolio landlords for new purchase applications or remortgages with capital raising.
If portfolio landlords meet the transitional arrangements rules Santander accepts 125% rental cover for remortgages without capital raising (must meet eligibility criteria for transitional arrangements)

If you complete this mortgage with us, we will pay for the cost of standard legal fees for the conveyancing in connection
with your mortgage and, if applicable, the purchase of your home, using a solicitor/conveyancer chosen by us. We will give you your first standard mortgage valuation free (costing up to £1,190) using one of our chosen surveyors. You will
be obliged to use one of our participating panel of surveyors and solicitors/conveyancers.

If you are transferring your mortgage to us, the solicitor/conveyancer instructed will only act for us. If you are purchasing your home the solicitor/conveyancer instructed will act for both you and us.

You’ll have to pay the following third party fees:

a) solicitor/conveyancer fees for submitting the Stamp Duty Land tax form to HMRC;

b) any disbursements due like land searches and land registration fees; if applicable; and

c) Stamp Duty.

If any additional work is required which is not normally associated with a remortgage/purchase, e.g. a transfer of equity, then this must be at your own cost. You will be provided with details of any additional fees or the cost of any additional work before work is carried out.

We will give you your first standard mortgage valuation free, using one of our chosen surveyors. You will be obliged to use one of our participating panel of surveyors and solicitors/conveyancers.

Santander’s ERCs are calculated as a percentage of the outstanding mortgage balance at the time of redemption. The
level of charge will differ by the type of product and the product term.
All Buy to Let borrowers are able to make overpayments of up to 10% of their total outstanding loan balance each
calendar year without incurring an ERC.

You may borrow additional money up to £750 to be able to complete your mortgage.

Your conveyancer will tell you that additional money is required and request your written agreement to this.
Alternatively, you should confirm this in writing to your conveyancer so that they may request it on your behalf. This would increase the total amount borrowed.

Your monthly payment would increase based on the product rate in section 4
charged on the additional money. The same early repayment charge would apply as section 10 on the additional amount borrowed.

This will be in addition to the early repayment charge payable on the money already borrowed.

All money borrowed will need to be paid back in full by the end of the mortgage term. The total loan must not be above 90% LTV.

If you wish to use this feature please contact Santander for a revised KFI.
THIS WILL INCREASE THE AMOUNT OF BORROWING SECURED ON YOUR HOME.
FIRST APPLICANT MUST BE EMPLOYED OR SELF EMPLOYED AND EARNING A MINIMUM BASIC INCOME OF AT LEAST £25,000 PER YEAR

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

Repayment Types

Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 75% LTV

Fees

Arrangement : varies
Booking : £varies Can be Added

Early Repayment Charges
varies, 10% capital repayments allowed per year without penalty

Higher Lending
None

Valuation
Basic:
Free
Homebuyers:
up to £50,000 – £350
up to £100,000 – £400
up to £150,000 – £450
up to £200,000 – £500
up to £250,000 – £550
up to £300,000 – £600
up to £400,000 – £700
up to £500,000 – £800
up to £600,000 – £875
up to £700,000 – £950
up to £800,000 – £1000
up to £900,000 – £1050
up to £1,000,000 – £1100
up to £1,500,000 – £1385
up to £2,000,000 – £1700
up to £2,500,000 – £2025
Min Valuation £75000

Where a product offers a free valuation incentive, this incentive is specifically for the provision of a Valuation for Mortgage Purposes only. If the applicant requires any other valuation type, no incentive is available. Please refer to
lender for further details if required.

Remortgage Solution

(Available to remortgage customers only.)
Free Valuation
All Remortgage Solution customers will receive a free valuation for mortgage purposes. Sometimes the property will be
valued by external inspection when the surveyor will view the property from the road or footpath to gain an estimate of
the value or by reference to an Automated Valuation Model (AVM). The customer will not be provided with a copy of the
AVM or External Inspection. In certain circumstances we may need to arrange a full inspection; in these cases, the
surveyor will contact the customer directly.

Free Legals
We also arrange and pay for the cost of legal work involved in transferring the mortgage, ensuring it will be undertaken
professionally and speedily. However, your customer will be required to pay for the following third party fees above this limit if they apply

For leasehold properties the landlord’s registration fee for registering the mortgage with the landlord in accordance with the terms of the lease

If the title to the property is unregistered the additional land registry registration fee.
If any additional work is required, which is not normally associated with a remortgage, then this will be at your customer’s own cost. Your customer will be advised of the cost of additional work before any work is carried out.

If the client wishes to instruct their own solicitor, this will also be at their own cost. Should the client redeem their mortgage on or before benefit package end date, all benefits must be repaid (a maximum of £200 must be repaid for legal contribution).

However, the benefit won’t need to be repaid if a new mortgage is completed on the same day with
Santander. The repayment of benefit received will be in addition to any product related charge applicable.

Mortgage Account Fee:
£225.00. There is a Mortgage Account Fee of £225, which is payable on completion of the mortgage. The fee can be deferred until the end of the mortgage

Valuation:
Please refer to the Lender’s Scale of charges
Lender will require a valuation to be undertaken on the property to be let. The surveyor will be asked to confirm the expected rental income and the value of the property. The opinion of the Surveyor will be final and non-negotiable.
Where a product offers a free valuation incentive, this incentive is specifically for the provision of a Valuation for Mortgage Purposes only.

If the applicant requires any other valuation type, no incentive is available.
Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.

Funds Transfer Fee – £35.00 Payable on completion.
Clawback of Remortgage Solution – £200.00 Payable on early redemption.
Account Fee – £225.00 Payable on redemption. A Mortgage Account Fee for the provision and general administration of
your mortgage. This fee can be paid on completion or deferred until the end of your mortgage. If you defer the payment,
this fee will not increase

Acceptable Property Types

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

Right to Buy
Not Accepted

New Build acceptable. Please refer to lenders website for full details
Property Price/Valuation:
Minimum value £75,000
No Maximum Value

New Builds:
Builders sometimes offer sales incentives to prospective buyers to encourage them to purchase their properties. An
incentive is anything the builder gives or provides to the buyer in cash or goods. We will accept up to 5% cash back
towards the purchase price (no financial limit) and builders payment of legal fees and stamp duty only. Any non cash
incentives, e.g. white goods, carpets, curtains etc. will be ignored.
New Build Flats – Max 70% LTV

The following flat types will be considered subject to valuation:
Fours storeys or less
Over four storeys
Over seven storeys – dwelling must have a lift.
Heritable properties considered.
The following construction will be considered subject to valuation:
Spree-fabricated
Steel frames.
Accepted Locations : England, Scotland, Wales, N Ireland

Requirements

Bank Statements No
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No
Insurance
Buildings Conditional
Conditions On Loan

Min Loan /Rmg £25,000
Max Loan /Rmg £750,000
Max Portfolio of BTL Loans £3,750,000
Min Age 21 years
Max Age 85 years
Min Term 5 years
Max Term 40 years
Address History: At least 3 years address history is required.
Mortgage Term:
Minimum term 5 years.
Maximum term 40 years.
Maximum age at maturity 85.

Tenancy Types:

Assured Shorthold Tenancy (minimum 6 months, maximum 36 months)
Student lets with one AST only.
Maximum of four tenants per single tenancy agreement
Only one tenancy per property.
Self-employed Applications Over 75% LTV Must Provide the following information:
In addition to existing evidence requirements, Santander will now be asking for three months’ business bank statements
for all self-employed applications over 75% LTV. The most recent bank statement must not be more than 30 days before the date of the application and should evidence that the business is healthy, trading at the expected level, and showing
no signs of financial pressure.

Self Employed Income Evidence Requirements:
Taxable income evidenced by latest SA302 or final accounts signed off by suitably qualified accountant (most recent year end must no be more than 18 months old)
Employed customers on a probationary period accepted.
Builders gifted deposits accepted but not vendors.

We will consider BTL applications from retired customers, where income is solely from a pension.
Santander will now accept applications from mortgage prisoners.
Clients letter from FCA third party administrator must be included, evidencing they have been identified as a mortgage prisoner. Refer to lender website for further details.
EEA/Swiss citizens (excluding Republic of Ireland)
For residential mortgage applications over 75% LTV where we use their income for affordability purposes, EEA/Swiss
citizens (excluding Rep. of Ireland) will need to evidence their permanent right to reside in the UK. This can be proof of their settled or pre-settled status as part of the EU Settlement Scheme or other acceptable evidence.

This will also apply to Buy to Let (BTL) applications where their income is required to meet the minimum £25,000 for
eligibility purposes.

Country of residence
All residential and BTL applicants must be UK resident. Where applicants are not UK resident, we’ll only consider applications for new lending (including existing Santander mortgage customers moving home) in certain scenarios.

Portfolio Landlords – We only consider portfolio landlords if the application is a remortgage without capital raising (£4£).
For these applicants, the application must meet the following property criteria on completion:
Maximum number of mortgages let properties with Santander – 3
Maximum number of let properties (mortgaged & mortgage-free) – 10
We do not accept portfolio landlords for new purchase applications or remortgages with capital raising.

Foreign Citizens Accepted
Ex-Patriates Not Accepted

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 Yes

The lender will no longer accept the following income types towards the £25,000 minimum income eligibility for Buy to Let applications: Child Benefit, Child Tax Credit, Working Tax Credit/Pension Credit or Maintenance payments.

For joint applications, at least one applicant must have a minimum income of £25,000

Credit History:

Landlord must be credit worthy and have a good track record as evidence by good credit score and minimal adverse data at the credit bureau

Applicants must have no more than ten secured credit commitments at application if they meet transitional
arrangements. If not, then no more than seven secured credit commitments at application.

We will not be able to proceed with the application if the applicant does not own the residential property in which they
live. For joint applications one applicant must own the residential property in which they live.

Self Employed Income Evidence Requirements:
Taxable income evidenced by latest SA302 or final accounts signed off by suitably qualified accountant (most recent
year end must no be more than 18 months old)

IMPORTANT :
Minimum Income – Single £25,000
Hire Purchase NOT Taken into account
Personal Loans NOT Taken into account
Overdraft NOT Taken into account
Credit/Store Cards NOT Taken into account
Child Maintenance NOT 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

BTL RENTAL COVER – PLEASE REFER TO BROKER

PRODUCT TERM LESS THAN 5 YEARS:
All applicants’ income tax bands are 40% or 45%
Purchase and all non-transitional Remortgage assessed at Rental cover of 150% and BTL affordability rate of 5.50%
Transitional Remortgage without capital raising assessed at Rental cover of 150% and BTL affordability rate 4.00%
At least one applicant’s income tax band is 20% or less
Purchase and all non-transitional Remortgage assessed at Rental cover of 125% and BTL affordability rate of 5.50%
Transitional Remortgage without capital raising assessed at Rental cover of 125% and BTL affordability rate 4.00%

5 YEAR PRODUCT TERM:
All applicants’ income tax bands are 40% or 45%
Purchase and all non-transitional Remortgage assessed at Rental cover of 150% and BTL affordability rate of 4.00%
Transitional Remortgage without capital raising assessed at Rental cover of 150% and BTL affordability rate 4.00%
At least one applicant’s income tax band is 20% or less
Purchase and all non-transitional Remortgage assessed at Rental cover of 125% and BTL affordability rate of 4.00%
Transitional Remortgage without capital raising assessed at Rental cover of 125% and BTL affordability rate 4.00%

We do not accept portfolio landlords for new purchase applications or remortgages with capital raising.
All new business residential self-employed applications are limited to 75% LTV.

PORTING:

All BTL Porting applications will be assessed at BTL affordability rate of 5.50%
Remortgage without capital raising application must meet eligibility criteria for transitional arrangements (New BTL Remo
application must not raise capital, property purchased before 1 Jan 2017 and no additional lending taken on or after 1
January 2017). Applications for Remortgage without capital raising that do not meet these criteria will not be accepted
The income tax band selected should take into account profit on rental income for all properties that the applicant will
own on completion.
The property being mortgaged with Santander must be self-financing.
The lender will no longer accept the following income types towards the £25,000 minimum income eligibility for Buy to Let
applications: Child Benefit, Child Tax Credit, Working Tax Credit/Pension Credit or Maintenance payments.

Minimum Income – Single £25000
Hire Purchase NOT Taken into account
Personal Loans NOT Taken into account
Overdraft NOT Taken into account
Credit/Store Cards NOT Taken into account
Child Maintenance NOT 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 Max LTV Max% increase
Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees Not accepted
Holidays/Cars Not accepted
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement Not accepted
Unencumbered Acceptable

For all BTL remortgages the property must have been owned for at least 6 months.
We do not accept applications where the customer is remortgaging their existing residential property as a Buy to Let,
regardless of any future intentions.
We will consider remortgaging with capital raising for personal use up to 75% LTV; including:
Home/property improvements
Personal debt consolidation
Investment, including purchase of another BTL or residential property

Capital raising for business purposes is not accepted. Buy to Let capital raising is only available for personal use.
PORTFOLIO LANDLORDS (4 or more mortgaged let properties)
REMORTAGES WITH CAPITAL RAISING AND PURCHASES
No new applications from portfolio landlords accepted for purchase and remortgages with capital raising.
Income and property criteria apply on completion of the new mortgage:
A minimum income is £25k required where a maximum of 3 mortgaged let properties with any lender (on completion new
mortgage) and an overall maximum of 7 let properties
REMORTAGES WITHOUT CAPITAL RAISING (TRANSITIONAL)
Portfolio landlords must meet transitional eligibility criteria (No capital raising, property purchased before 1 January 2017
and no additional lending has been taken on or after 1 January 2017)
In addition applicants must meet income and property criteria on completion of the new mortgage:
Minimum income is £25k is required where a maximum of 3 mortgaged let properties (on completion new mortgage) with
Santander and an overall maximum of 10 let properties

Adverse Credit

CCJs : Not Acceptable
Defaults : Not Acceptable
Arrears : Not Acceptable
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable
No Adverse accepted

Notes

Capital raising (including debt consolidation) is allowed but details of the amount and reason for borrowing the additional funds must be supplied with the application.

Santander will not accept applications from customers with a criminal record (or where they are living with someone who has), unless the conviction is for a minor traffic offence, or is spent under the Rehabilitation of Offenders Act 1974.

Santander will consider BTL applications from retired customers, where income is solely from a pension.

All BTL Porting applications will be assessed at BTL affordability rate of 5.50%

A Remortgage application without capital raising must meet the eligibility criteria for transitional arrangements (New BTL Remo application must not raise the capital on a property purchased before 1 Jan 2017 and no additional lending taken on/or after 1 January 2017

Santander will consider applications where any element of employed income is paid in any of the following foreign currencies: US Dollar (USD), Euro (EUR), Swiss Franc (CHF), and UAE Dirham (AED). The sterling equivalent must be calculated and discounted by 25% to allow for currency fluctuations. This figure must be input into the £ equivalent field in Introducer Internet.

All parties contributing towards the purchase of a Buy to Let should be named as an applicant and meet the criteria stated. Applications where a third party is providing towards the deposit may be considered subject to sufficient supporting information being provided.

Santanders Buy to Let mortgages do not allow a landlord to borrow additional funds from Santander after completion of the mortgage. They reserve the right to ask for additional customer information where they deem necessary. Your clients need to meet the lenders normal residential lending policy, where applicable.

Santander do not accept applications for BTL properties with six or more bedrooms

With regards to Flats if the loan is over £350,000 the maximum LTV Santander will consider is 85%. For loans under £350,000 then the maximum LTV is 95%

For lower rate Tax payers, Purchase and all non-transitional Remortgage is assessed at Rental cover of 130%. A Transitional Remortgage without capital raising assessed at Rental cover of 125%. For higher rate Tax payers, Purchase and all non-transitional Remortgage assessed at Rental cover of 145% and Transitional Remortgage without capital raising assessed at Rental cover of 125%

Santander accepts remortgage applications up to 90% LTV to redeem a Help to Buy: equity loan in full from the Help to Buy schemes in England, Scotland and Wales. Where the LTV is over 85% and up to 90%, the advance can only be used to redeem the first mortgage and the equity loan.

DEPOSIT TYPE: Vendors deposit – refer to lender

Where any part of the loan is Interest Only, the minimum leasehold term requirement at outset is 50 years.

ADVERSE: Unsatisfied CCJ’s and Defaults are up to underwriters discretion

EEA/SWISS CITIZENS (EXCLUDING REPUBLIC OF IRELAND): For Buy to Let (BTL) mortgage applications where their income is required to meet the minimum £25,000 for eligibility purposes, EEA/Swiss citizens (excluding Rep. of Ireland) will need to evidence their permanent right to reside in the UK. This can be proof of their settled or pre-settled status as part of the EU Settlement Scheme or other acceptable evidence.

COUNTRY OF RESIDENCE: All residential and BTL applicants must be UK resident. Where applicants are not UK resident, lender will only consider applications for new lending (including existing Santander mortgage customers moving home) in certain scenarios.

Santander do not accept portfolio landlords for new purchase applications or remortgages with capital raising. Santander will only consider portfolio landlords if the application is a remortgage without capital raising (£4£). Maximum number of mortgaged let properties with Santander is 3. Maximum number of let properties (mortgaged & mortgage free) is 10.

FUNDS TRANSFER FEE: Funds Transfer / CHAPS Fee is only applicable if the application is for Purchase.

Santander are unable to accept Shared Ownership or Right to Buy applications.

PRODUCT FEES: Product fees can be paid on either up front (at application), or add to the loan amount. If added to the loan then customers can repay it within 21 days without incurring any interest.