Buy to let additional information

Eligibility rules

In addition to our general lending policy, to be eligible for a buy to let mortgage the following apply:

• You must be aged 21 or over and a UK property owner.
• The main earner must have been in continuous employment for at least 3 months or more, self-employed for a minimum of one year, or retired with a private pension
• For applications with one applicant, the individual must have a minimum Gross income of £25,000. In the case of joint applications at least one applicant must have a minimum Gross income of £25,000 or there must be a minimum Gross joint income of £30,000
• Applications to remortgage a main residence to a buy to let are not acceptable in any circumstances
• Properties must be let to a sole occupant or single family unit only, with the exception of student lets where a maximum of 4 students are allowed
• Properties with more than one kitchen, or designed or converted for multiple occupancy are not considered
• Your property may be let to individuals on an assured short hold tenancy basis or to companies on a corporate let, for a minimum term of six months and a maximum term of 12 months
• The maximum number of rental properties you can have is three per household with the Coventry BS Group*. And a maximum of ten properties with all lenders
• Properties must have a minimum purchase price or valuation of £75,000. Please note, this does not apply to porting, transfers of equity or further advances.
  
  
• For purchase applications, the lower of the purchase price or valuation must be at least £75,000.
• For remortgages, the valuation must be at least £75,000.
• The maximum loan limit is £1 million in total with the Coventry BS Group*
• The maximum loan to value for a **new build/converted apartment is 50% LTV
• If you are remortgaging you must have owned the property for at least six months for an application to be considered
• For purchase applications, the vendor must have owned the property for a minimum of six months
• Applications intended for 'sale and rent back' are not accepted and will be declined. ('Sale and rent backs' are situations where a property is being purchased on a Buy to let basis where the property is to be immediately let to the previous owner.)
• Applications where it is identified that the DWP (Department for Work and Pensions, formerly know as the DSS) will be making the rental contributions are not accepted and will be declined

How much can you borrow?

The maximum loan amount is dependant on the scheme chosen and the amount of deposit you can provide.

Rental income

We need to consider the amount of rental income you will earn when we lend to you. The minimum rental income required is 125% of your monthly mortgage interest.

*The Coventry BS Group consists of Coventry Building Society and Godiva Mortgages Limited.

** We define new build as properties that have been built within three years of the mortgage application or are properties to be occupied for the first time. This includes flat conversions where the number of flats in the development exceeds 10.

Your home may be repossessed if you do not keep up repayments on your mortgage.