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Other owned properties/properties in the background

The Society will not take into account for affordability purposes the monthly mortgage payment of any buy to let properties in the background providing that they are tenanted at the time of application, with at least 135% rental income coverage.  In all other instances, the annualised mortgage payment will be deducted from the assessable income before the application of the relevant income multiple.

If the possibility exists that a retained property will be sold in the short term and has sufficient equity to repay our loan or reduce it significantly, we may make a commercial decision not to proceed with the application or delay the payment of any procuration fee

Please refer all cases, including cases potentially exceeding 80% LTV. The Society will not lend at above 80% LTV in instances where a property in the background also has a LTV of higher than 80% or where there is more than one retained property.

Posted in: Guide to Terms & Underwriting