All applicants must be aged 18 or over, and they must be no more than 85 years old at the end of the mortgage term. Applicants must apply before their 75th birthday for purchases and remortgages. There is no maximum age at application for further advances, porting or transfer of equity cases.
Buy to Let loans are not available to first time buyers. A first time buyer is defined as an applicant that has never owned a property.
First Time Landlords are acceptable.
All applicants must either own or have previously owned a property.
We require three years' UK address history for all applicants. Where an applicant is not able to provide three years’ UK address history, non-UK addresses should be recorded and the case reviewed on its own merits.
We allow up to four applicants on a mortgage application.
Applicants must currently be resident in the UK and have permanent leave to remain.
For foreign nationals (excluding Republic of Ireland) each applicant must have been granted indefinite leave to remain or right of abode to live and work in the UK or settled/pre-settled status to live and work in the UK. We will require one of the following documents as evidence:
In addition we require evidence of two years' residency history in the UK.
Applicants must not hold any level of diplomatic immunity.
We will carry out a credit check on all mortgage applicants as well as additional checks to verify the identity of the applicants. Please refer to our privacy notice for further details.
We will consider applications from applicants with previous CCJs, defaults or arrears, provided they do not exceed the limits in the Credit history matrix.
|Standard acceptable limits|
|Bankruptcy||Acceptable if discharged for at least 6 years|
|IVA||Acceptable if completed for at least 6 years|
|CCJs in last 6 months||None allowed|
|CCJs over 6 months up to 3 years||Less than £250 satisfied or not|
|CCJs over 3 years old||Considered on an individual basis|
Defaults in last 3 years
||Less than £250 satisfied or not|
Defaults over 3 years
||Less than £1,500 satisfied or not, may be considered on an individual basis|
Defaults in last 3 years
||Less than £250 satisfied or not|
Defaults over 3 years old
||Less than £1,500 satisfied or not, may be considered on an individual basis|
|Arrears in last year on unsecured debt||1 month's arrears are allowed|
|Arrears in last 3 year on secured debt||1 month's arrears are allowed|
Two forms of identification are required for each applicant - please see Identification and verification - acceptable documents
All documents used for verification must be originals or certified copies of documents that were originally printed at source and posted to the address of the applicant(s). Copies printed from the internet are not acceptable.
If you have examined the original document, you may certify the copy.
If you have not examined the original document, copies of original documents can only be certified by one of the following:
Copies of original documents should have been certified within the last 12 months using the following words: ‘I confirm that I have seen the original document’.
The person certifying should be in current employment, but we will also accept certification from a person who has retired (unless the list above specifically indicates that the person should still be serving), provided they still hold the qualification (and are a member of the relevant institute).
The person certifying must not be related to you in any way e.g. spouse, partner, sibling, parent, child or in-law, and they must not be named as a joint account holder/borrower on your mortgage. You cannot certify your own identification.
Photo proofs must be certified by the intermediary/intermediary admin only, with direct access to the physical document. Standard security checks must be completed of physical documentation. Photo proofs must not be accepted from customers.
Please note, these lists are not exhaustive. Please contact the Intermediary Development Team on 0800 121 7788 (selecting option 2) for further clarification.
No minimum income is required.
Affordability is based on the applicable ICR calculation, therefore we do not require applicants to be in receipt of any earned income. See Rental Criteria section for more information.
|Type of employment||Proof of income|
(including Limited Liability Partnerships paid via PAYE, Zero Hour Contracts)
(including zero hour contracts)
|Self Employed - Sole Trader, Partnerships (including Limited Liability Partnerships) and Sub-contractors||
Latest financial year should be no older than 12 months at the date of application.
The documentation may show the latest financial year up to 18 months old at the date of application when supported with the latest three months' personal bank statements.
|Directors with less than 20% share in the Company||
|Directors with 20% or more share in the Company||
The latest financial year shown on the documentation must be no older than 12 months as at the date of application. Where the proof of income is outside of this requirement, the documentation may show a latest financial year up to a maximum of 18 months old as at the date of application, if supported with the latest three months bank statements showing income received.
Accountant's certificates should be prepared by an Associate or Fellow of an approved accountancy body:
The minimum rental income required from the property is established using the relevant Interest Coverage Ratio (ICR), based on the Society's applicable reference rate.
Rental income is assessed using the figure provided in the valuation report, based on the property being let on a single unfurnished AST agreement, to a sole occupant/single family or for up to four individuals on a single unfurnished AST agreement where the property is suitable for a single family unit occupancy.
|Reference Rate||Customer Type|
(inc. additional borrowing)
|BTL Remortgage (with no additional
|All portfolio landlords
|Product||2 Yr BBR Tracker||5.5%||5.0%||5.0%|
|Flexx for Term|
|2 Yr Fixed|
|3 Yr Fixed|
|5+ Yr Fixed||4.5%*|
^ Existing customers Porting/ToE with additional borrowing. LTV & or loan amount are increasing.
^^ Existing customers Porting/ToE no with additional borrowing. LTV & or loan amount are not increasing and the ICR is no lower than the most recent ICR assessment.
* Where the total loan has 5 years or more remaining on a fixed rate product at completion, the 5 years + fixed rate reference rate can be applied.
If your client is a Portfolio Landlord please see the specific criteria below for more information.
For all applicants: if all applicants declare their individual income is less than £49,000 each year (£42,500 if resident in Scotland), including all gross income, total gross monthly rental income on this application and all other investments. And they declare themselves to be Lower rate taxpayers*, the minimum rental income required is 125% of your client's monthly mortgage interest payment on a reference rate of up to 5.5%** based on the chosen product.
For any applicant: if any applicant declares their individual income is £49,000 or more (£42,500 or more if resident in Scotland), including all gross income, total gross monthly rental income on this application and all other investments. And declare themselves to be a higher rate tax payer* the minimum rental income required is 145% of your client's monthly mortgage interest payment on a reference rate of up to 5.5%**, based on the chosen product.
* Lower rate tax payers are: non or basic rate tax payers (basic/starter/intermediate rate if resident in Scotland). Higher rate tax payers are: higher or additional rate tax payers (higher/top rate if resident in Scotland)
** Where the total loan has 5 years or more remaining on a Fixed rate product the reference rate is currently 4.5%.
** Or for remortgage applications with no additional borrowing the reference rate is currently 5.0%
The property must be let on a single Assured Shorthold Tenancy (AST) agreement (England and Wales) Private Tenancy (PT) agreements (Northern Ireland), or a Private Residential Tenancy (PRT) agreement (Scotland) for a minimum term of 6 months.
In England and Wales, the maximum term for a tenancy agreement is up to 36 months; where the tenancy agreement is between 12 and 36 months a Department for Communities and Local Government (DCLG) model tenancy agreement must be used.
In Northern Ireland, the maximum term for a tenancy agreement is 12 months, and in Scotland, there is no maximum tenancy term.
The property must be let to either a:
* Where the property is let to a corporate body (this includes Educational Establishments, Housing Associations or Local Authorities), the maximum term of the tenancy agreement between the corporate body and the occupier(s) is 36 months (England and Wales) or 12 months (Northern Ireland). In Scotland, there is no maximum tenancy term. Where the property is in England or Wales and the term of the tenancy agreement between the corporate body and the occupier(s) exceeds 12 months, a DCLG model tenancy agreement must be used.
Properties subjected to a Mandatory HMO licence are not acceptable (except in Scotland, as the licensing rules are different and apply to properties with more than two tenants.)
Properties subject to an Additional HMO licence are acceptable subject to a maximum of four tenants on one relevant tenancy agreement.
A portfolio landlord is/are clients with four or more Buy to Let mortgaged properties, either together or separately, in total.
The following applicants must have a minimum ICR of 145% for the whole portfolio using the applicable reference rate irrespective of product types across all properties within the portfolio - the calculation should also include any unencumbered properties.
Alternatively, the following applicants must have a minimum ICR of 125% for the whole portfolio using the applicable reference rate irrespective of product types across all properties within the portfolio – the calculation should also include any unencumbered properties.
No individual property within the portfolio should have an ICR of less than 100%. Where there is a property not currently tenanted (e.g. due to a void period), the ICR must be calculated based upon the estimated rent (from applicant declaration, providing the rental void period has been less than two months).
Where the rental void period has been two months or more an explanation should be obtained from the applicant.
We assess all the properties in the portfolio in all cases. This means that you must provide us with information that includes the value of each mortgage, monthly mortgage repayments, monthly rental amounts and estimated property values. You’ll also need to give us full details of any unencumbered BTL properties.
There should be a maximum LTV of 65% across the whole portfolio. This calculation will include properties that are unencumbered and the property they’re applying for.
No single property should be below an ICR of 100% (based on a reference rate currently of 5.5%).
Portfolio landlords must have acquired their first BTL property more than 24 months before the current application. No more than three properties (prior to the current application) should have been acquired within the last 12 months.
The dedicated BTL portfolio underwriting team will also review the portfolio to consider geographical exposure and property management risk. For example the number of properties in the same block of flats or street, and how properties are managed.
Any totals or limits refer to the Coventry Building Society Group, not per company.
The maximum number of rental properties a household can have in mortgage with us is five in total.
The maximum number of rental properties a household can have in mortgage with all lenders is ten.
The aggregate loan limit on all rental properties in mortgage to us is £2,000,000
Properties with more than one kitchen or designed or converted for multiple occupancy are not acceptable.
For more information see the HMO and Licenced HMO Properties section
Properties must be situated in England (including the Isle of Wight), Wales (including Anglesey) or Scotland (including the Scottish Isles).
Freehold (also known as Feuhold, heritable or absolute ownership) tenure is acceptable for houses, bungalows and cottages in England, Wales and Scotland.
Freehold (including the previous Feuhold and Heritable Security Tenures) is the only acceptable tenure for properties in Scotland.
Leasehold tenure is acceptable for houses, bungalows and cottages in England and Wales.
Leasehold is the only acceptable tenure for flats and maisonettes in England and Wales.
Leasehold tenure is acceptable provided:
Properties must be built of brick or stone with a tile or slate roof. For flats, we will also accept a flat mineral felt roof. The mortgage valuation will be used to confirm the suitability of the property.
Single skin brickwork is only acceptable for garages and porches provided they are single storey, or a small proportion of the habitable area subject to valuer’s guidance.
We will consider steel framed properties provided that they were built on or after 1 January 1990. The cladding must be predominantly (67%) either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However, areas of less than 33% of the total external wall area formed in these materials may be considered on their own merits provided that the remainder of the walls are constructed of an acceptable material.
Timber framed properties built after 1990 can have up to a maximum of four storeys considered.
Timber framed properties built after 1945. Cladding must be predominantly (67%) of either brick or stone at all levels. Outer cladding specifically excluded includes large concrete panels, timber, plastic, metal sheeting, and tiles. However areas of less than 33% of the total external wall area formed in these materials can be considered on their own merits if the remainder of the walls are constructed of an acceptable material.
Timber framed construction built pre 1995 up to two storeys maximum and post 1995 up to four storeys maximum. The outer skin must be predominantly (67%) either brick, concrete block or stone block at all levels.
Please note, the information above outlines our general construction criteria. If you have a specific query, please contact our Intermediary Development Team on 0800 121 7788 (selecting option 2).
Applications where solar power panels are installed on the property being purchased, or remortgaged, are acceptable, subject to the valuer confirming the property is suitable security, and where the solar panels have a lease the acting conveyancer confirms that the lease is acceptable.
BTL properties in England, Wales and Scotland are required to have an Energy Performance Certificate (EPC) rating of ‘E’ or above, unless they are exempt from the regulation
Where the Valuer states that the property has an EPC rating of F or G a full retention is to be applied until the property has been brought up to a minimum E standard, or they are exempt from the regulation
Exemption details can be found at
Domestic Private Rented Landlord Guidance (PDF)Opens in a new window
Flats above shops are restricted to a maximum LTV of 75% and dependent on the nature of the business, we may not be able to lend at all.
We will not consider a mortgage application for ex-local authority flats or ex-housing association flats:
The loan to value on ex-council or housing association flats or maisonettes is restricted to 70%.
We also will not consider the following:
Where an EWS1 form is required, the property is only acceptable where the form is satisfactorily completed by a suitably qualified professional, and the valuer confirms that option A1, A2 or B1 has been selected and confirms that the property is suitable security. A list of the relevant professional bodies is available to download from the RICS website.
We will not accept applications on properties that have been assessed as A3 or B2.
We will not accept applications where a property is undergoing remediation in respect of fire safety issues with the external wall systems or attachments; works must be completed prior to application.
Maximum LTV, criteria, and definition for new build flats, can be found within new build properties (less than or equal to three years old, or first occupation).
The maximum loan to value for a new build or converted apartment, flat or coach house is 50% LTV.
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 ten.
The maximum loan to value for a new build house is 85%. Please refer to the specific mortgage product details for maximum Buy To Let LTV limits.
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.
Any new build properties must hold either:
Second hand properties under ten years old must have been built with the benefit of an acceptable builder's guarantee scheme subject to the following exception:
For both new and converted properties the legal representative must confirm:
The vendor of any new property is required to disclose the full value of any incentive in connection with the purchase of the property.
Where we are notified of any incentives, the value of the incentives will be deducted from the purchase price to ascertain the net purchase price. The maximum loan and mortgage offer will be based on the net purchase price.
For purchase applications, the vendor must have owned the property for a minimum of six months.
Our ability to lend may be restricted for properties that are in close proximity or influential distance of commercial outlets. We will take advice from our valuers when assessing the property to be mortgaged.
Applications are not considered where the property offered for security is a self-build property or a self-build conversion, where the construction or conversion of the property is not fully completed at the time of application.
Applications where it is identified that the customer owns more than 10% of the development, in which the proposed property will be located, will not be accepted.
Where there are ten or less properties on the development or estate, if the applicant already owns one or more properties in the development or estate, we will not consider lending under these circumstances.
Properties affected by Japanese knotweed, RICS categories 1 and 2, are acceptable subject to a satisfactory valuation report.
Category 1 – Japanese knotweed was not seen on the property, but it could be seen on a neighbouring property or land where it was more than seven metres away from the boundary.
Category 2 – Japanese knotweed was not seen on this property, but it was seen on a neighbouring property or land within seven metres of the boundary but more than seven metres away from habitable spaces, a conservatory and/or a garage.
Properties affected by Japanese knotweed that do not meet the above criteria are unacceptable.
The minimum advance is £25,001.
|Up to 50%||£1,000,000|
|Over 50% - 75%||£750,000|
We will consider applications for the following loan purposes providing the application meets all our lending criteria:
This list also applies to properties that are currently unencumbered.
We will not accept applications for the following:
For property purchases applicants must provide a deposit from their own resources.
The following exceptions apply:
Maximum repayment term requirements apply to all loan types. The maximum repayment term is 35 years.
The maximum term may be restricted by the maximum age restrictions.
The following repayment types are acceptable:
Offers of advance for purchases (including Transfers of Equity) and remortgages are valid for a period of six months from the date of application.
Offers for further advances are valid for a period of four months from the date of application.
Please note: Where there is a simultaneous request for a further advance and a transfer of equity, the Transfer of Equity offer will be valid for six months and the further advance offer will be valid for four months.
Mortgage offers will not be extended, completion of the mortgage must take place by the mortgage offer expiry date.
For applicants who have exchanged contracts but are unable to complete their purchase because of the ongoing coronavirus situation, we can support by looking to extending their mortgage offer.
The property needs to have been owned by the applicant(s) for a minimum of six months prior to the application date. The only exception to this is where the property has been inherited.
We’ll consider applications to remortgage a property with a residential mortgage that is currently let if:
- The property has been let for at least 6 months - prior to the date of application
- The mortgage has not been in arrears during that period.
- We may ask for evidence from the existing lender that the property is let, or we may ask for evidence of rent.
We don’t accept applications to remortgage a property currently used as a main residence on a Buy to Let basis.
Capital raising purposes
Subject to loan amount and LTV limits, we accept the following loan purposes:
- To pay for improvements/repairs to the let property or any other property owned by the applicant (owner occupied or let)
- To raise capital to fund the purchase or provide the deposit for a new investment property or for a main residence
- To purchase the freehold title of a leasehold property which is already in mortgage to us
- To raise capital to extend the lease of a property and any associated costs incurred with this transaction
- To purchase the equity of another party to the mortgage
- To purchase additional land
Portability means that your client can move (or 'port') their existing mortgage scheme to purchase a new property.
Our porting policy varies according to the customer's type of mortgage scheme. Please contact the Intermediary Development Team on 0800 121 7788 (selecting option 2) for any porting queries.
We require the following information:
We will also ask the following questions: