The following criteria for let properties is subject to our underwriters discretion and we may make exceptions in certain circumstances. We normally expect all existing mortgages to be self-financing. 

The outstanding mortgage(s) can be ignored if the property is already let from the date of application and the monthly rental amount is at least 145% of the monthly mortgage payment at 5.5% interest*. 

Where the monthly rental payment does not cover mortgage payments by 145% at an interest of 5.5%*, we will calculate the deduction as the monthly mortgage payment multiplied by 145% minus the monthly rental income. If the rental income does not meet at least 100% of the calculation the full mortgage payment will be taken as a commitment. 

*As the majority of Buy to Let properties are mortgaged on an interest only basis, we use an interest rate of 5.5% on the outstanding mortgage (as evidenced on the credit records) to determine if the rental income meets the 145% rule.

The applicant(s) may be asked to provide: 

• Bank statements for the period that the property has been let 
• Evidence of the last 12 months mortgage payments