These are the basic criteria for our Buy to let mortgage range.
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.
- You 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.
- Net minimum income is £25,000 (where the application is in joint names, the main earner must have a net income~ of £25,000).
- 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.
- 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.
*The Coventry BS Group consists of Coventry Building Society and Godiva Mortgages Limited.
~Net income is defined as annual income before tax minus a deduction for ongoing unsecured financial liabilities.
** 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.
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.
