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Buy to Let Mortgages for Brokers
As a broker, you’ll be looking to pair up your customer with just the right lender for their Buy to Let property. A lender with over 20 years’ experience in the buy to let industry. A relationship managed service provider with real people reviewing each case on an individual basis. A lender where kinder banking comes naturally and a ‘computer says no’ approach just doesn’t exist. As a broker, you’ll find that The Cumberland value your customers, just as much as you do.
We are proud to offer a fully relationship managed service to our customers, so we're always on hand when you need us. We are committed to delivering a personal service that’s kinder to people – we make it our priority to get to know you as the broker, the needs of your client and the intricacies of their business from the outset.
Lending Criteria
| Tenure | Properties can be freehold or leasehold with a minimum of 85 years left on the lease at the start of the mortgage and 50 years on maturity
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| Income | Amateur Landlords (Individuals & Partnerships): Annual income of above £25,000 (or £50,000 with 100% rental coverage where top slicing is required). Amateur Landlords (Limited Companies): Annual income of above £25,000 (or £50,000 with 100% rental coverage where top slicing is required). Portfolio Landlords (Individuals, Partnerships & Limited Companies): Annual income of above £25,000 (or £50,000 with 100% rental coverage where top slicing is required). Background portfolio cannot exceed 20 properties. Maximum 8 individual Society BTL loans per borrower. |
| Fees | Arrangement fees will apply. Free valuations up to £750k loan amount, on selected products only. Legal fees are met by borrowers. |
| Limited companies | Limited Company borrowers must be incorporated in the UK and beneficial owners must be resident in the UK |
| Residency | Individual borrowers must be resident in the UK |
| Construction | We are unable to mortgage property which is a temporary or movable structure |
| Tenancy Agreement | Tenancy agreement should be on Assured Shorthold Tenancy basis or in Scotland Private Residential Tenancy Basis, with maximum term of 6 months, with any existing tenancy agreement having commenced after 1 March 1997. All properties have an Energy Performance Certificate (EPC) with a rating of E or higher or higher or a suitable exemption for properties in England and Wales |
Rental Income and Affordability
For products less than 5 years, annual rental income should be minimum 145% of annual mortgage interest at stressed rate of 5.5%, or product rate +2% if higher.
For products fixed for a period of 5 years or more, annual rental income should be minimum 145% of annual mortgage interest calculated using the product rate.
For remortgages with no additional borrowing, annual rental income should be minimum 145% of annual mortgage interest calculated using the product rate.
Where a capital & interest mortgage is required, evidence DCR at 125% coverage with a further check that ICR is met at 145%. Both DCR and ICR must be met.
For products less than 5 years, annual rental income should be minimum 125% of annual mortgage interest at stressed rate of 5.5%, or product rate +2% if higher.
For products fixed for a period of 5 years or more, annual rental income should be minimum 125% of annual mortgage interest calculated using the product rate.
For remortgages with no additional borrowing, annual rental income should be minimum 125% of annual mortgage interest calculated using the product rate.
Where a capital & interest mortgage is required, evidence DCR at 110% coverage with a further check that ICR is met at 125%. Both DCR and ICR must be met.
For products less than 5 years, annual rental income should be minimum 145% of annual mortgage interest at stressed rate of 5.5%, or product rate +2% if higher.
For products fixed for a period of 5 years or more, annual rental income should be minimum 145% of annual mortgage interest calculated using the product rate.
For remortgages with no additional borrowing, annual rental income should be minimum 145% of annual mortgage interest calculated using the product rate.
Where a capital & interest mortgage is required, evidence DCR at 125% coverage with a further check that ICR is met at 145%. Both DCR and ICR must be met.
For products less than 5 years, annual rental income should be minimum 125% of annual mortgage interest at stressed rate of 5.5%, or product rate +2% if higher.
For products fixed for a period of 5 years or more, annual rental income should be minimum 125% of annual mortgage interest calculated using the product rate.
For remortgages with no additional borrowing, annual rental income should be minimum 125% of annual mortgage interest calculated using the product rate.
Where a capital & interest mortgage is required, evidence DCR at 110% coverage with a further check that ICR is met at 125%. Both DCR and ICR must be met.
Buy To Let Application Form
Download a copy of the Buy to Let Application form.