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Buy to Let and Holiday Let mortgages maximum LTV increased to 75%

With the holiday season upon us, we’ve some good news for Buy to Let (BTL) and Holiday Let landlords as we’re increasing our maximum loan to value (LTV) for these products to 75%.

With a number of new BTL and Holiday Let mortgages available from Thursday 6 May 2021, we’re pleased to be able to have increased:

  • property related and non-property related capital raising from 70% to 75%
  • LTV for new build houses from 65% to 70%
  • LTV for new build flats from 60% to 65%

We’re also changing the way we assess minimum income for Holiday Let mortgages from Thursday 6 May 2021. Our minimum income requirements have previously stated that a customer must earn £40,000. However, if the primary applicant does not earn £40,000, we’ll now accept joint applications with a total income of £60,000. We’ve made this change in direct response to feedback from you and your customers.

These changes to affordability assessment, and increased LTVs, come as pandemic restrictions begin to ease, meaning staycations are likely to be a popular choice this summer.

“Understanding borrower needs and developing products and lending criteria to support our customers is key to who we are as a mutual,” said Matt Bartle, our Director of Products.

“I’m pleased we’re able to increase the maximum LTV on our Buy to Let lending from 70% to 75% with the launch of these two new products, which are among the improvements we’re making to our range.

“We’re one of the minority of lenders to offer dedicated Holiday Let mortgages and are changing our minimum income requirements to support more borrowers looking at this type of investment.

“While interest in Holiday Let has continued to build over recent years, we expect this demand to remain strong as more people choose staycations because of the restrictions or complexities around international travel due to the pandemic.”

If you’d like to find out more about these changes, you can speak to your BDM or use our broker chat facility.

Please note: