Mortgage Lending criteria
Product
3.19% Tracker to 31/05/2015
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
back to buy to let best buys
Product
3.19% Tracker to 31/05/2015
4.5%
Advances
Upto £500,000 (Remortgage only LTV 75)
Notes
Mortgage is Portable
If you buy a new property while an early repayment charge (ERC) is payable on one or more of the products which make up this mortgage, you may port your existing mortgage product(s) to your new property subject to the following terms;
Your new application must meet our lending criteria current at the time you move. We will carry out credit checks on you, and will require a valuation of the new property, and will decline to port if you do not meet our criteria in force at that time. This may mean that we decline to lend at all on the new property, or may allow you to port less than the amount you have applied for.
You may not port to a flexible mortgage type such as Offset or One Account mortgages.
The customer named in the existing mortgage and the ported mortgage must be the same (this means that in the case of a joint mortgage all of you must also be named on the new mortgage and you cannot port separately), and the mortgage product must be the same, in terms of interest rate and product end date.
The mortgage must be ported to a new property that you are purchasing; you cannot port to property you already own.
We will refund your ERC if you meet the above terms, provided that you complete your new mortgage within 3 months of the date of redemption of the current mortgage. (e.g. if this mortgage redeems on 25th January, you new mortgage must complete by or on 24th April. If 24th April falls on a non-business day, the new mortgage must complete by or on the last business day before that date).
If you port the full balance on which an ERC is payable, we will make a full refund of the ERC. If you port less than the full balance outstanding we will refund only the ERC payable on the amount transferred.
Where no ERC is payable, you may apply to us for a new mortgage when moving house. Any new application will be subject to our lending criteria current at the time you move, and will require credit checks and a valuation of the new property.
Free Legal
*PLEASE NOTE** FIRST TIME BUYERS (WITHOUT A RESIDENTIAL MORTGAGE) WISHING TO PURCHASE A BUY-TO-LET PROPERTY WILL BE SUBJECT TO OUR STANDARD RESIDENTIAL CRITERIA.
A BUY-TO-LET MORTGAGE CAN BE USED FOR:
THE PURCHASE OF NEW INVESTMENT PROPERTIES.
THE REMORTGAGE OF EXISTING PORTFOLIOS.
EQUITY RELEASE FROM UNENCUMBERED INVESTMENT PROPERTIES.
LET-TO-BUY PROPOSALS.
EXTRA BORROWING FOR PERMANENT IMPROVEMENTS TO THE PROPERTY OR THE PURCHASE OF ANOTHER BUY-TO-LET PROPERTY.
ELIGIBILITY
THE APPLICANT(S) MUST BE 18 OR OVER.
MAXIMUM MORTGAGE TERM IS 25 YEARS OR APPLICANT'S RETIREMENT AGE (MAXIMUM AGE 70).
THE PROPERTY MUST BE IN ENGLAND, SCOTLAND OR WALES.
APPLICANT MUST BE UK NATIONAL, EU NATIONAL OR HAVE INDEFINITE LEAVE TO REMAIN IN THE UK.
THE PROPERTY MUST BE A RESIDENTIAL PROPERTY OWNED BY THE APPLICANT(S) AND NOT FOR THEIR OWN USE AT ANY TIME.
WE WILL NO CONSIDER MULTIPLE TENANCIES, HOMES OF MULTIPLE OCCUPANCY, BEDSITS, DSS TENANTS OR 'RELATED PERSON' TENANCIES
ASSURED SHORTHOLD (ENGLAND & WALES)/SHORT ASSURED (SCOTLAND) TENANCY AGREEMENTS REQUIRED.
BUSINESS PARTNERSHIPS AND LIMITED COMPANIES ARE EXCLUDED - ALTHOUGH NATWEST BUSINESS BANKING MAY BE ABLE TO ASSIST.
THE MAXIMUM NUMBER OF RBS GROUP BUY-TO-LET MORTGAGES YOUR CLIENT CAN HAVE IS TEN.
WE CANNOT ACCEPT APPLICATIONS FROM PROFESSIONAL LANDLORDS, PROPERTY DEVELOPERS OR THOSE APPLICANTS EARNING >30% OF THEIR INCOME FROM PROPERTY RELATED ACTIVITIES.
LOAN PARAMETERS
THE MAXIMUM LTV, BEFORE FEES, IS 75% (65% FOR NEW BUILD PROPERTIES). THE VALUE IS CALCULATED ON THE PURCHASE PRICE (IF APPLICABLE) OR THE CURRENT MARKET VALUATION, WHICHEVER IS LOWER.
THE MINIMUM LOAN IS £25,000.
THE MINIMUM PROPERTY PURCHASE PRICE/VALUATION IS £50,000.
THE MAXIMUM LOAN AMOUNT IS £500,000 PER PROPERTY SUBJECT TO MAXIMUM BORROWING OF £3.5M PER CUSTOMER.
THE MAXIMUM NUMBER OF RBS GROUP BUY-TO-LET MORTGAGES YOUR CLIENT CAN HAVE IS TEN.
RENTAL COVER - UP TO 10 LOANS
WE USE A RENTAL COVER PERCENTAGE TO WORK OUT HOW MUCH YOUR CLIENT CAN BORROW.
ALL RENTAL COVER PERCENTAGES ARE BASED ON AN INTEREST RATE OF 125% AT 7%.
FOR APPLICANTS WITH EARNED INCOME (NON PROPERTY RELATED) OF £50,000 PA OR MORE, REDUCED RENTAL COVER OF 100% @ 7% WILL BE CONSIDERED, PROVIDED THEY CAN MEET THE 25% DIFFERENCE FROM THEIR OWN NET FREE INCOME. THIS WILL ONLY APPLY IF THE APPLICANT HAS LESS THAN 3 BUY TO LETS (INCLUDING THE CURRENT APPLICATION).
EMPLOYMENT
APPLICANTS MUST HAVE A MINIMUM INCOME OF £20,000 & WE WILL REQUIRE STANDARD INCOME VERIFICATION DOCUMENTATION FOR ALL APPLICATIONS.
APPLICANTS WISHING TO BORROW A TOTAL OF £1 MILLION OR MORE FOR BUY TO LET (BTL) PURPOSES WILL REQUIRE A MINIMUM ANNUAL INCOME OF £50,000 P.A.
BUY TO LET APPLICATIONS WILL NOT BE CONSIDERED FOR APPLICANTS IN RECEIPT OF STATE BENEFITS (EXCLUDING CHILD BENEFIT).
PROPERTIES
MUST BE HABITABLE AND COMPLETE BEFORE DRAWDOWN.
MUST BE A PRIVATE RESIDENCE AND NOT FOR RUNNING A BUSINESS.
ANY FORM OF COMMERCIAL OR BUSINESS PROPERTY. OR PROPOSAL WHERE STAGE PAYMENT FUNDING IS REQUIRED (E.G. SELF-BUILDS OR PROPERTY RENOVATION PROPOSALS OR BUYING 'OFF PLANS') IS NOT ACCEPTABLE.
VALUATIONS
A STANDARD BUY-TO-LET MORTGAGE VALUATION BY A PANEL SURVEYOR INSTRUCTED BY US (RBS GROUP) IS ALWAYS REQUIRED FOR EACH APPLICATION.
AS WELL AS PROVIDING THE USUAL REPORT INFORMATION, INCLUDING THE VALUATION FIGURE, THE REPORT WILL ADVISE US OF
THE EXPECTED MONTHLY INCOME.
WHETHER THE PROPERTY IS IN A SUITABLE CONDITION TO LET.
WHETHER THE PROPERTY IS IN AN AREA WHERE THERE IS A STEADY DEMAND FOR RENTED ACCOMMODATION OF THIS TYPE.
BTL products cannot be combined with a non BTL rate.
Loan parameters
The maximum LTV, before fees, is 75% (65% for new build properties). The value is calculated on the purchase price (if applicable) or the current market valuation, whichever is lower.
The minimum loan is £25,000.
The minimum property purchase price/valuation is £50,000.
The maximum loan amount is £500,000 per property subject to maximum borrowing of £3.5m per customer.
No valuation or legal fees if using the Bank's nominated valuer and solicitor (providing all parts of your mortgage are covered by this incentive).
You can make overpayments on this mortgage.
You can overpay a maximum of 10% of your outstanding mortgage balance in each 12 month period commencing on completion of your mortgage and continuing from each anniversary of that date until the end date of this rate, without incurring an Early Repayment Charge. If your mortgage is made up of more than one part you can overpay up to a maximum of 10% of the outstanding balance of each part.
An Early Repayment Charge will be incurred on any overpayment that exceeds the annual 10% limit. Please refer to Section 10 for information on Early Repayment Charges that would be incurred if any overpayment exceeds the annual 10% limit.
You benefit immediately from overpaying directly to your mortgage. If you make an overpayment or lump sum payment then the amount you owe, and the amount of interest you pay, is reduced immediately.
Regular Overpayments
You can arrange to set up, discontinue or alter a regular overpayment in writing or by telephone at any time after completion of the loan. Your request must be received by us at least 14 days prior to your next Payment Day in order to be processed in time for that payment, otherwise the change will take effect from the following Payment Day.
Regular overpayment amounts will be collected with the Monthly Payment and will not be varied automatically as a result of any change to the Interest Rate. The agreed overpayment will continue to be collected with the revised Monthly Payment after any such change.
Buy to Let : Accepted, Max properties 10
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 75% LTV
Fees
Arrangement : £2495 Can be Added
Booking : None
Early Repayment Charges
3% of loan to be paid until 31/05/2015, 10% capital repayments allowed per year without penalty
Higher Lending
None
Valuation
Basic:
Free
Homebuyers:
upto £100,000 - £253
upto £250,000 - £361
upto £500,000 - £505
upto £750,000 - £685
upto £1,000,000 - £860
Special:
upto £100,000 - £505
upto £250,000 - £635
upto £500,000 - £793
upto £750,000 - £1094
upto £1,000,000 - £1369
Min Valuation £50000
If the application is withdrawn before offer, the arrangement fee will not be applied and, if it was paid up front, will be refunded to the customer. If the application is withdrawn after offer, the arrangement fee will be applied, and if it was paid up front, it will not be refunded to the customer.
Arrangement Fee - £0.00 Payable upfront. This fee is paid at the time the mortgage is arranged. If the application is withdrawn before offer, the arrangement fee will not be applied and, if it was paid up front, will be refunded to the customer. If the application is withdrawn after offer, the arrangement fee will be applied, and if it was paid up front, it will not be refunded to the customer.
Remittance Fee - £30.00 Payable on completion. This is an administration fee when the loan proceeds are issued to the solicitor and is deducted from the amount sent.
Acceptable Property Types
Freehold Flat Yes
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Refer
Studio Flat Yes
Flying Freehold Yes
Thatched Refer
Timber Framed Yes
Concrete Refer
Agricultural Tie Refer
Flat Over 4 Storeys Refer
Listed Building Refer
Not Accepted
New Build acceptable.
NatWest will allow landlords with more than 10 investment properties to apply for a NatWest Buy to Let mortgage.
Applicants can have mortgages on up to ten properties with NatWest (maximum total borrowing of £3.5m per customer, maximum loan £500,000 per property)
Accepted Locations : England, Scotland, Wales
Requirements
Bank Statements No
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned Refer
Previous Lender References No
Insurance
Buildings Conditional
Conditions On Loan
Min Loan /Rmg £15,000
Max Loan /Rmg £500,000
Max Portfolio of BTL Loans £2,500,000
Min Age 18 years
Max Age 70 years
Min Term 3 years
Max Term 35 years
Please refer to the Packaging section of intermediary.natwest.com for full details of supporting documents required.
To see how much your client may be able to borrow, please view the lenders mortgage affordability calculator also available at intermediary.natwest.com
Once you have completed your application, you will receive a scoring decision, which will be either an 'Accept', 'Refer' or 'Decline' message. Any policy warnings will also be displayed. As part of the scoring process, we will attempt to electronically verify and validate the identity of your client. If successful you will receive a message to confirm that we will not require any further proof of identity for your client. Where we have been unable to verify their identity, you will be asked to send us certified copies of their identity documents you will already have on your file. Either way, you will know at the point of sale what will be required.
Building insurance to cover the full cost of rebuilding your property.
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income Multipliers
Rental Income must be 125% of the monthly mortgage payments
Min months in current position 1
Min months in continuous service 6
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit No
Outgoings
Personal income cannot be used to subsidise rental shortfalls on properties 6-10 (Therefore 125% rental cover must be met using rental income alone)
Rental cover - up to 10 loans:
We use a rental cover percentage to work out how much your client can borrow.
All rental cover percentages are based on an interest rate of 125% at 7%.
For applicants with earned income (non property related) of £50,000 pa or more, reduced rental cover of 100% @ 7% will be considered, provided they can meet the 25% difference from their own net free income. This will only apply if the applicant has less than 3 Buy To Lets (including the current application).
Employment:
Applicants must have a minimum income of £20,000 & we will require standard income verification documentation for all applications .
Applicants wishing to borrow a total of £1 million or more for Buy to Let (BTL) purposes will require a minimum annual income of £50,000 p.a.
Rental Income must be 125% of the monthly mortgage payments
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Refer to lender
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 No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply
Remortgage
Capital Raising Not accepted
Home Improvements 75%
Debt Consolidation Not accepted
School Fees Not accepted
Holidays/Cars Not accepted
Buy Other Property Not accepted
Business Purposes Not accepted
Divorce Settlement Not accepted
Unencumbered 75%
Adverse Credit
CCJs : Refer to lender
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable
Refer to lender
- The Lender will consider customers with previous or existing adverse credit in a flexible manner and every case will be assessed on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender will follow the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.
