Newbury Building Society

Applicants
Tenants
Property type
Property value
Tenancy agreement
Solicitors

These pages are designed to give you some guidance on our Buy to let mortgage Lending criteria. We are committed to being flexible in our approach to mortgage lending. We look at each case on an individual basis, so if your circumstances do not appear to fit our criteria, contact us and we will endeavour to help you.

Please also read mortgages explained for a general explanation of mortgages and related topics and the terms of our buy to let mortgage products.

Buy to let mortgages are administered through Newbury Mortgage Services Ltd, which is a wholly owned subsidiary of Newbury Building Society. You do not become a member of Newbury Building Society when you complete a mortgage through Newbury Mortgage Services Ltd.

Applicants

The applicants must be resident in the UK and have permanent rights to reside in the UK.

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Tenants

In general terms, we accept employed/self-employed persons, couples and family units. We do not lend to landlords who have Department of Work and Pensions (formerly DSS) tenants or students because the risk is different and generally higher.

If you ask an agent to manage your property, they should be a member of ARLA (Association of Residential Letting Agents).

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Property type

The property you choose must be suitable for letting, where there is a good demand for rented property. It also needs to be within our local lending area.*

We lend in areas where we have an understanding of the needs of our market.

Click here for a map which details the operating area.

We will also lend to people who have been members of the Society for two years or more. The property must be located in England or Wales.

Click here to find your local branch

We do not lend on freehold or ex-local authority flats or multi-occupancy properties. Freehold houses and leasehold properties (with at lease 30 years remaining at maturity of the mortgage) are suitable. Leasehold flats in blocks of more than four storeys are not acceptable.

If you are buying/remortgaging a converted flat, leasehold flat over a commercial premises or a property with an agricultural tie, please seek advice from us.

All properties of conventional construction (brick and tile) are generally acceptable. We do not lend on timber or concrete properties.

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Value

Our minimum property value is £40,000. The maximum is £250,000 per property.

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Tenancy agreement

You and your tenants will need to sign an assured shorthold tenancy agreement of six or twelve months. The terms within the agreement will protect both parties.

The net monthly rental income (as assessed by our valuer) must be equal to or greater than 120% of the mortgage payments.

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Solicitors

Generally we will use the same solicitor as you, providing the firm has three or more partners and is listed in Butterworths Law Directory. If a conflict of interest arises during the process, then we would need to employ our own solicitors at your cost. This situation happens very rarely.

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