Mortgage Lending criteria
Product
5.69% Fixed for 2 years
5.7 Libor tracker
Notes: We have not verified this information with the lender. Ask us to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key features Illustration. Please ask your broker for a Key features Illustration
back to buy to let best buys
Product
5.69% Fixed for 2 Years
5.7% Libor Linked
Advances
Upto £350,000 80% LTV (Rmg 80%)
Notes
Mortgage NOT portable
If you move house, you must repay the loan together with any early repayment charges and fees.
- Mortgage is NOT for First time buyers
- Mortgage is an EXCLUSIVE product
A landlord may either take advantage of the small portfolio (0-3) product or the 4-6 portfolio product however a combination of the two products will not be permitted. Existing BTLs mortgaged with Kensington will count towards the portfolio limit on either product.
Rental income calculation based on 120% of initial payrate, plus minimum income
You can repay all or part of the Loan at any time before the end of the Term in accordance with the Conditions. However, if you do repay all or part of the Loan before the end of the Term (by making either lump sum or regular overpayments) you must pay us the amount of (a) the early repayment charge calculated on the amount repaid (as detailed in Section 10 above) and (b) our Expenses in connection with the early repayment (as detailed in the Conditions and our Tariff from time to time). Any repayment will be credited to your mortgage account on the day that cleared funds are received by us. For the purposes of working out the amount of interest which is owed by you, the Interest for the Interest Period in which the repayment is made will be recalculated and credit will be given for the number of days from receipt of repayment until the end of the Interest Period in which the repayment is received. This means that you will get the benefit of paying less Interest straight away.
The maximum LTV for this product is 80%.
Buy to Let : Accepted
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes
Fees
Arrangement : 2.50% of loan Can be Added
Booking : None
Early Repayment Charges
5% of loan to be paid within first 2 Years
Higher Lending
None
Valuation
Basic:
upto £250,000 - £300
upto £500,000 - £450
upto £750,000 - £600
upto £1,000,000 - £750
Min Valuation £90000
Valuation fee for properties over £1,000,000 - by arrangement
Minimum valuation £90,000 (£120,000 for nw build flats)
Redemption Administration Fee - £145.00 Payable on redemption.
Lenders Conveyancing Fee - £150.00 Payable on completion. A legal fee paid to your conveyancer before the loan starts which is not refundable. The figure quoted here is an estimate, the total fee may be higher
Telegraphic Transfer - £35.00 Payable on completion.
Deeds Release Fee - £45.00 Payable on redemption.
Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop No
Maisonette Yes
Studio Flat No
Flying Freehold No
Thatched Refer
Timber Framed Refer
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Refer
Not Accepted
New Build acceptable. Portfolio maximum of £1million or 3 properties (whichever is lower).
Ex local authority flats and maisonettes are not accepted.
Builder deposits up to 5% are accepted. The builder must be a major national or regional NHBC registered company.
Vendor deposits not accepted.
Kensington will lend up to 65% LTV on Wimpey No Fines & Laing Easiform houses.
Number of Kitchens acceptable 1, unless a granny flat is attached then 2.
New build maximum 65% LTV
Accepted Locations : England, Wales
Requirements
Bank Statements 3 months
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes
Insurance
Buildings Conditional
Conditions On Loan
Min Loan £25,001/Rmg £25,001
Max Loan £350,000/Rmg £350,000
Max Portfolio of BTL Loans none
Min Age 25 years
Max Age 75 years
Min Term 5 years
Max Term 30 years
Full Status - Employed
Minimum months in current position 3. 12 months history required
Full Status - Self Employed
12 months verified accounts required
Accountant's Certificate required.
For BTL products, written confirmation of rental income will be confirmed by a RICS valuer
Self-employed applicants require an accountant's certificate or self-assessment acceptance by Inland Revenue (for smaller trading companies that do not employ an accountant) . Income multiples are applied to the last year's share of Net profit/income. In the case of directors of a limited company, the applicant's salary plus his share of Net profit, dividends and pension figure will be used.
Minimum age of 25 years on BTL products.
The property must be adequately insured under an acceptable insurance policy in accordance with the Conditions. Fees may be payable if you rearrange insurance during the Term as set out in the Conditions and Tariff from time to time.
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income Multipliers
Refer to rental income calculations
Min months in current position 3
Min months in continuous service 12
Min no. of years accounts 1
Average years taken to calculate income none
Will consider declining profit No
Outgoings
Lending in Probation period only acceptable on self cert loans not full status.
Applicant one must have an income in excess of £25,000.
Mininum Income £25000
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 100% to income before multiply
Other Income - Irregular No
Investment Income Add 100% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Refer to Lender
Non Contributory Pension Add 100% to income before multiply
Car Allowance No
Remortgage Max LTV Max% increase
Capital Raising Acceptable
Home Improvements 80%
Debt Consolidation 80%
School Fees 80%
Holidays/Cars 80%
Buy Other Property 80%
Business Purposes 80%
Divorce Settlement 80%
Unencumbered 80%
Adverse Credit
CCJs/Defaults : Accept:
1) Max 2 Defaults unsatisfied. There must be no Defaultss in the last 24 months. This condition does not incur any rate loading.
2) There must be no CCJss in the last 24 months. This condition does not incur any rate loading.
Ignore:
1) CCJs registered 24 months ago or over.
2) Defaults registered 24 months ago or over.
Arrears : Accept:
1) No arrears (paid or unpaid) in the last 24 months. This condition does not incur any rate loading.
Bankruptcy/IVAs : Bankruptcy/IVA not accepted.
Repossessions : Not accepted.
CCJ's - 0 in 24 months
Defaults - 2 in 24 months
Arrears - 0 in 24 months
Bankruptcy - None
IVA - None
Unsecured Credit Information - Max Credit Report status of 2 on any individual agreement in last 12 months. Up to date.
back to buy to let best buys
