Do you have clients looking to borrow on a joint borrower, sole proprietor basis? We can help!
Do you have clients looking for a buy-to-let mortgage?
We believe in greater flexibility and accessibility in obtaining buy-to-let mortgages to help your clients make successes of their investments.
Whether they're a first-time landlord or established and looking to grow their property investment portfolio, we can help your clients.
Below, our Business Development Manager (BDM) Alice Pocock answers some of the frequently asked questions around this type of lending.
What is the criteria for a buy-to-let mortgage with Newbury?
We ask for applicants to be owner occupiers, unless they are in tied accommodation or have a reasonable explanation as to why they’re looking to be a first-time buyer, first-time landlord.
We also request a £30,000 minimum income; however, you can talk to us if your client has a credit worthy case where income falls below this level. Our rental coverage is 125% at 5.75 for basic rate taxpayers and 135% at 5.75 for higher rate. However, we pride ourselves in our tailored approach to every case which hits our desks, so we can top-slice using your client’s surplus income as well if the ICR doesn’t work.
What sort of buy-to-let cases do you accept?
We accept a range of buy-to-let cases, including:
- Family occupied
- Limited company
Do you consider other income to support an application if the rent coverage doesn’t work?
Yes, we do. If the rental coverage falls short, we can factor in your client’s personal income and any debts. If there’s a surplus amount left over, we’re normally happy with the mortgage. This is known as top-slicing.
We also ‘top-slice’ on limited company buy-to-lets.
Find out how much your client could borrow by using our handy buy-to-let calculator.
Can my client capital raise to repay another mortgaged property? If so, how does this help a buy-to-let customer?
Yes, we can. Feedback suggests landlords are affected by the numerous buy-to-let regulatory changes. As a result, a buy-to-let portfolio may no longer be the most cost effective. So, we can consider capital raising on your client’s residential mortgage to repay the balance of the buy-to-let.
I have a client who wants to purchase a property to let out to her children – is this possible?
Absolutely. We would base the rental coverage on the rent the family member will pay as we would not use the open market rent value – we do require an Assured Shorthold Tenancy (AST).
Once again, we consider other income to support the application if the ICR doesn’t work and our buy-to-let mortgage products are suitable for those looking to give a loved-one independence and security whilst accruing capital in the property over time.
What is the difference between your buy-to-let mortgages and holiday-let mortgage?
The main difference is the way we calculate the income. For holiday-lets, we take an average of the low, mid and high season rate over a 21-week period. This is then stress tested using the rental coverage.
Our Senior Business Development Manager, Martin Yates, explores this further in his recent article ‘Why are landlords turning to holiday-lets?’
Can I talk to you about limited company buy-to-let mortgages?
We have flexible criteria around Limited Company mortgages as we do not require the company to be a Special Purpose Vehicle (SPV). We can accept existing trading companies purchasing their first property, without the need for the SIC codes, as required by other lenders.
Are your buy-to-let mortgage products postcode restricted?
They are, but we are a flexible lender so don’t let the postcodes put you off. If the case meets all other aspects of our criteria but isn’t in our “usual” buy-to-let operating area, it’s still worth a chat.
Why should I speak to Newbury about a mortgage for my client?
Our individual underwriting and personal approach make us more than just a lender. We take a common-sense approach to assessing each mortgage application and aim for a sleek and painless process, in line with the applicant’s expectations. Our CeMap qualified BDM’s and experienced underwriters make us stand out from other lenders.
If you have a case you want to talk through with us, our Intermediary Helpdesk is open Monday - Friday, 9am - 5pm.
*all figures and data correct as of December 2019