Buy to Let Archives - The Loughborough Building Society

Loughborough Building Society extends criteria to include lending on flats

Dale Houlden — Mon, 14 Nov 2022 13:28:47 +0000

Loughborough Building Society has extended lending criteria across its residential, buy-to-let and shared ownership product range with the addition of flats to its list of acceptable properties.

The Leicestershire-based lender will now lend up to 80% LTV on buy-to-let flats in England and Wales, provided they are no more than five storeys high and serviced by a lift if the property is above the 2nd floor.

Loughborough will now also lend on residential flats for both standard and shared ownership mortgages up to 90% LTV. The exception being on new build properties where the maximum LTV is reduced to 80% of the purchase price/valuation or applicants share for shared ownership.

Ashley Pearson, National BDM at The Loughborough said:

“As we’ve grown our proposition, we’ve listened to feedback from our panel members and continue to implement responsible levels of change where applicable and appropriate. It’s important for us as a mutual to support a variety of borrowing needs and provide a range of solutions for first-time buyers and, in particular, those looking at the shared ownership option.

“This criteria change will also allow us to accept greater levels of BTL business which we’ve previously had to turn away in the past. And this represents a positive move for a landlord community who needs all the support it can get.”

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Family Buy to Let FAQ’s

Dale Houlden — Mon, 17 May 2021 09:43:46 +0000

To help give you more information and guidance on our Family Buy to Let products, we’ve put together answers to the following Frequently Asked Questions.

How many Buy to Let properties can I have?

To qualify for our Buy to Let mortgages, you can have up to three properties in mortgage with one or more lenders. More than that would make you a portfolio landlord and we currently don’t lend to portfolio landlords.

Do I have to own my home in order to do a Buy to Let mortgage?

We don’t offer Family Buy to Let mortgages to first time buyers, so you’d need to own your own mortgaged home or have had experience of paying a mortgage in the past.

I want to rent out my current home or a property that I’ve inherited, is this possible?

Yes, if you or a close relative have lived in a property that you now wish to rent out to another family member, you can do so providing your circumstances are within our lending criteria.

Is there a minimum/maximum age to apply for a Buy to Let mortgage?

Yes, you need to be at least 25 years old at the time of application and be no more than 80 years old at the end of the mortgage term.

Do I need to have a minimum income?

Yes, you’d need to earn £25,000 or more to apply for a Buy to Let mortgage. We’d also assess the expected rental income and if this was not enough to cover the mortgage and related expenses, we’d consider using any surplus income you have after all your personal living expenses and financial commitments have been taken care of.

What’s the minimum term of employment or self-employment for Buy to Let?

For self-employed you need to have three years accounts, for those who are employed we’ll consider any term.

Can I rent a house to a close family member such as a parent, brother, sister, child, grandparent, grandchild, step relative or in-law?

Yes, you can rent a house to close family members. This is known as a Family Buy to Let.

Do you allow Houses In Multiple Occupancy (HMO)?

No, we currently don’t offer mortgages on properties that fall under HMO rules. We’ll only lend on properties that are less than three storeys and let to single family units.

Is there a specific type of tenancy agreement I need to have?

Yes, you need to have an Assured Shorthold Tenancy agreement with a term of 6 months (minimum) and 12 months (maximum).

Are there tax implications with Buy to Let properties?

Yes. We’re not tax experts and therefore if you have any questions, you should contact HMRC or someone who specialises in tax advice.

Will you lend to ex-pats?

No, only to UK residents who’ve been in the UK for three years or more.

Please be aware that our FAQs do not cover all aspects of our lending criteria, for further information or guidance please use our online contact form or telephone us on 01509 610707.

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Buy to Let FAQ’s

Dale Houlden — Fri, 16 Oct 2020 12:29:41 +0000

To help give you more information and guidance on our Buy to Let and Holiday Let products, we’ve put together answers to the following Frequently Asked Questions.

How many Buy to Let properties can I have?

To qualify for more than one of our Buy to Let mortgages, you must have had a previous or current residential mortgage. You can have up to three Buy to Let properties in mortgage with one or more lenders. More than that would make you a portfolio landlord and we currently don’t lend to portfolio landlords.

Do I have to own my home in order to do a Buy to Let mortgage?

No, we’re happy to lend to First Time Buyers.

I want to rent out my current home or a property that I’ve inherited, is this possible?

Yes, if you or a close relative have lived in a property that you now wish to rent out to tenants, you can do so providing your circumstances are within our lending criteria.

Is there a minimum/maximum age to apply for a Buy to Let mortgage?

Yes, you need to be at least 25 years old at the time of application and be no more than 80 years old at the end of the mortgage term.

Do I need to have a minimum income?

What’s the minimum term of employment or self-employment for Buy to Let?

For self-employed you need to have three years accounts, for those who are employed we’ll consider any term.

Can I rent a house to a close family member such as a parent, brother, sister, child, grandparent, grandchild, step relative or in-law?

Yes, you can rent a house to close family members as long as you’re not a First Time Buyer. This is known as a Family Buy to Let.

Do you lend to Limited Companies?

No, we currently don’t lend to Limited Companies, only individuals.

Do you allow Houses In Multiple Occupancy (HMO)?

No, we currently don’t offer mortgages on properties that fall under HMO rules. We’ll only lend on properties that are less than three storeys and let to single family units.

Is there a specific type of tenancy agreement I need to have?

Yes, you need to have an Assured Shorthold Tenancy agreement with a term of 6 months (minimum) and 12 months (maximum). This Excludes Holiday Lets.

Are there tax implications with Buy to Let properties?

Yes. We’re not tax experts and therefore if you have any questions, you should contact HMRC or someone who specialises in tax advice.

Will you lend to ex-pats?

No, only to UK residents who’ve been in the UK for three years or more.

Are there any properties excluded from Holiday Let Mortgages?

Yes, we exclude the following property types: holiday park properties, mobile homes, static non-permanent structures, multiple occupancy (a property divided into separate ‘flats’ or with more than 5 bedrooms) and others not already matching the accepted property types for existing Buy to Let, Guest-houses.

Can the owner of the Holiday Let use the property themselves?

Yes, the owner can use the property themselves for up to 60 days per year.

Please be aware that our FAQs do not cover all aspects of our lending criteria, for further information or guidance please use our online contact form or telephone us on 01509 610707.

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