No minimum income required on 5-yr fixed rate deal at 3.79%

New houses in a street

Although lenders can adjust their criteria and products to compete in the buy-to-let market, two areas of lender criteria that are not usually altered are the minimum income of the applicant that a lender will accept and, the minimum length of time an applicant is required to have been working for their current employer. 

However, when it comes to both of the above criteria, this lender has a far more flexible approach, as outlined further down.

75% LTV* 5-year fixed rate buy-to-let mortgage

75% LTV*5-year fixed rate rate buy-to-let
Product type Initial rate Max LTV* Product fee ERC's**
5-year fixed rate 3.79% 75% 2.00% For 5 years

* Loan to Value
**Early Repayment Charge
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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Long-term stability

With a fixed rate product, you have the benefit of knowing exactly what your monthly repayments will be for the initial period, irrespective of fluctuations in the wider mortgage market.

No minimum employment period for full time employed applicants

When it comes to length of employment, mortgage criteria often requires applicants to have been in their current role for a period of 3-6 months after they have passed their probationary period. This can be a stumbling block for those who have recently started a new job.

Not so here, if you have just started a new job this lender will consider your application and assess it on a case-by-case basis, as long as you can provide evidence of your income.

Newly trading self-employed applicants

Self-employed buy-to-let mortgage applicants commonly need to demonstrate between 12-24 months’ worth of trading on their books. However, in this instance, applications are again assessed on a case-by-case basis and evidence of trading over much shorter periods may be accepted.

No minimum income level required

Approximately two thirds of the lenders we currently work with set a minimum requirement for an applicant’s income at application, most commonly £25,000 per annum. However, there is no minimum requirement in this instance - to apply for this mortgage you will just need to provide evidence of some form of income at application.

Please note, Jobseekers Allowance and Income Support are not accepted forms of income.

Evidence of income

When submitting an application, the following are acceptable as evidence of income:

  • Employed applicants: Last month’s payslips and your last P60, OR,
  • Self-employed applicants: Last year accounts or SA302, OR,
  • Retired applicants: Evidence of pension income (pension income statement, payslip), OR ,
  • Additional income: Trust funds, investment and rental income (SA302 or income statement) 

If you are unable to provide any of the above, bank statements showing activity over the last three months, are also accepted. All bank statements must come from a UK bank.

Limited company applications

This mortgage is available to non-trading limited companies investing in property via a Special Purpose Vehicle (SPV). The SPV must fall under one of the following SIC code classifications: 68100, 68209 or 68320.
Please note there is a £500 limited company processing fee for this product.

Favourable stress testing for limited company SPV’s

For borrowers who are utilising a SPV structure to invest in property, this lender offers a rental coverage that is calculated at 125% and mortgage affordability at pay rate (3.79% for this particular deal).

Below are two borrowing scenarios on behalf of a limited company. They illustrate how calculating mortgage affordability at pay rate can achieve a higher loan amount than with stricter calculations.

The first example is hypothetical, but based on an enhanced 5.5% rate that some lenders apply to calculate mortgage affordability:

Example 1:

Desired loan amount: £155,000

Rental income of: £750

Rental coverage calculated at: 125%

Mortgage affordability rate: 5.5%

Calculation to work out the maximum loan amount: (£750 *12 months) /125% / 5.5%
Maximum loan amount possible = £130,909

In this scenario, the limited company applicant is unable to achieve the borrowing they require.

The second example uses the pay rate to that this lender uses to calculate mortgage affordability.

Example 2:

Desired loan amount: £155,000.

Rental income of: £750

Rental coverage calculated at: 125%

Mortgage affordability rate: 3.79% (pay rate of this product)

Calculation to work out the maximum loan amount: (£750 *12 months) /125% / 3.79%
Maximum loan amount possible = £189,973

In this scenario, not only has the limited company applicant achieved the loan amount they required, they can actually borrow more than they were aiming for.

Mortgage criteria summary

  • Available for property in England and Wales
  • For purchase and remortgage
  • Available for individuals and limited company SPV (must be non-trading)
  • First-time landlords only accepted on joint applications with an experienced landlord
  • Application fee of £125
  • Limited company processing fee of £500
  • Minimum age at application, 25 years old, maximum age at term end, 85 years old
  • Not available to expats

Apply today with our experts

If you feel that you would benefit with this deal, ensure you don’t miss out, speak with one of our advisors today or click on the link below and we will call you back.

Call us on 0800 032 6388 or enquire online

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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