Lending Criteria


Buy to let


Residential


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General
Latest criteria updatesDownwards_arrowUpwards_arrow
  • Key facts
  • Reduction in minimum loan size to £50,000 for limited company and specialist mortgages
  • Reduction of large loan entry point from £1,000,000 to £750,000
  • For buy to let mortgages we require no proof of income for portfolio landlords, whether they are employed or self-employed (please note, this is still a requirement for non-portfolio landlords)
  • Two years income is required for all self-employed applicants for income-backed products.
Key factsDownwards_arrowUpwards_arrow
  • Up to 85% LTV
  • Loans up to £3,000,000 - more by exception
  • Professional landlords welcome
  • Affordability is based on rental income
  • Loans over 80% LTV are not available for first time landlords
  • Separate legal representation is required in some circumstances
  • Joint representation is permitted via our approved limited company/LLP panel of conveyancers however, separate legal representation is required in some circumstances
  • Reduction in minimum loan size to £50,000 for limited company and specialist mortgages
  • Reduction of large loan entry point from £1,000,000 to £750,000
  • For buy to let mortgages we require no proof of income for portfolio landlords, whether they are employed or self-employed (please note, this is still a requirement for non-portfolio landlords)
  • Two years income is required for all self-employed applicants for income-backed products.
Loan purposeDownwards_arrowUpwards_arrow
  • Applications are considered for the purchase or remortgage of the applicant's buy to let property.
  • A breakdown of additional borrowing is required.
  • Remortgage of the applicant's buy to let property is acceptable for any legal purpose except to
    repay tax, to shore up a business, for business purposes or for gambling debts.
Minimum AdvanceDownwards_arrowUpwards_arrow

Standard

Minimum Loan (£)
£50,000



Specialist

Minimum Loan (£)
£50,000*



Standard Large Loans

Minimum Loan (£)
£750,000



Specialist Large Loans

Minimum Loan (£)
£750,000



Limited Company Loans

Minimum Loan (£)
£50,000



Ex-pat Standard

Minimum Loan (£)
£125,000



Ex-pat Specialist

Minimum Loan (£)
£125,000

*Excluding Multiple units under a single freehold subject to a minimum loan of £75,000.

Further AdvanceDownwards_arrowUpwards_arrow
  • Buy to let further advance products are available on repayment or interest-only terms.
  • Minimum loan is £15,000
  • Maximum loan is £1,000,000
  • The term of any buy to let further advance must not exceed the term of the existing mortgage
  • Buy to let further advance are not portable
Buy to let portfolio submission requirementsDownwards_arrowUpwards_arrow

Portfolio landlords with four or more mortgaged buy to let properties (including those that are applying for a fourth mortgaged property, or those looking to remortgage one of their existing four properties), additional information will be required, including details of the borrower’s wider buy to let portfolio, which will be assessed as part of the underwriting process. Please use our Portfolio Submission Platform, The Buy to Let Hub, to submit this information.

We will also require the following documents to support the borrower's application:

  • Business plan, which includes cashflow
  • Assets and liabilities statement.

    N.B. without the above, your application won’t be underwritten.

Source of depositDownwards_arrowUpwards_arrow
  • The deposit should come from the applicant’s own resources.
  • For a gifted deposit to be acceptable, the family member must be one of the following:
    • Mother
    • Father
    • Sibling
    • Grandparent.

    A copy of our gift declaration form must be provided, to confirm:

    • The gift isn’t a loan
    • The gift is non-refundable
    • The donor won’t have an interest in the property.

    A certified copy of the donor’s ID is required. In the event the applicant and family member(s)
    have different surnames, we require evidence of a family name connection such as a marriage certificate.

    For more information on source of deposit requirements, please download our full buy to let criteria guide

Mortgage OffersDownwards_arrowUpwards_arrow

    Our offer period on new-build properties is six months.

Fees and charges
Day one remortgagesDownwards_arrowUpwards_arrow

Our Day one remortgage proposition is aimed at clients looking to remortgage shortly after they have, for example, purchased a property at auction, or have bought a property where a standard mortgage was not initially possible.

Remortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

  • The loan amount being based upon the lower of the purchase price or current valuation.
    Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:
    • A schedule of works and evidence of expenditure
    • Confirmation that works have been completed to a suitable standard
    • Any necessary consents have been obtained
    • The property should be marketable and mortgageable

    • Maximum 75% LTV
    • In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this is not available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
    • New-build properties excluded
    • All other standard criteria apply.
Application feeDownwards_arrowUpwards_arrow

Application fee: £130.

This is a charge for assessing and processing the application (even if it is unsuccessful or is withdrawn). Payable at the time of application.

Product feesDownwards_arrowUpwards_arrow

Please refer to the product pages for the relevant product fee payable.

Product switching feeDownwards_arrowUpwards_arrow

Product switching fee: £30

This is charged when a product is switched post offer; the client will be required to pay the additional Product fee as shown on the product page.

Legal costs for limited company loansDownwards_arrowUpwards_arrow
    Any limited company or LLP application will need to select a solicitor from our limited company/LLP panel of approved solicitors. Alternatively, an applicant can use their own solicitor. However, the Bank will instruct one of the solicitors from the specified panel, and the applicant will be liable for both sets of fees.
 Up arrow - 09 Right Arrow - 09Separate representation (lender only)

Any cases that require separate legal representation for the Bank will incur the following costs, which the client will need to pay.

 
Loan size Fee for freehold Fee for leasehold
£0 - £250,000
£450 £525
£250,000 to £999,999
POA POA
£1,000,001+
 0.20% of the advance  0.21% of the advance

Additional fees Freehold Leasehold
 Each additional AST
 £25  £25
Additional fees for companies Freehold Leasehold
Corporate customer £125 £125
Personal guarantee (per guarantor) £50 £50


Note

The above fees will be subjected to the payment of VAT at the going rate.
Disbursements will be payable for relevant searches, land registration costs, stamp duty land tax (where applicable)

The additional fee items listed above are not an exhaustive list. If the Borrower requires any additional fee work to be undertaken (e.g. board minutes etc.) the fee(s) for those items must be separately negotiated with the selected firm.  

Loan/Purchase instructions not proceeded with will all be charged in an amount commensurate to the work done as at the time that the matter becomes abortive.

Download a PDF of our legal costs for separate representation

 Up arrow - 09 Right Arrow - 09Joint representation (lender and customer)

Any case where the customer selects joint legal representation the conveyancer must be selected from the Bank's approved panel of conveyancers who will act on behalf of the customer and the Bank. The customer will incur the following costs that the customer will need to pay. 

Loan size/Purchase price
(whichever is greater)
Fee for freehold Fee for leasehold
   Remortgage  Purchase  Remortgage  Purchase
£0 to £150,000
 £550  £650  £700  £850
£150,001 to £300,000
 £550  £700  £700  £900
£300,001 to £350,000
 £650  £800  £800  £1,000
£350,001 to £400,000  £650  £900  £800  £1,200
£400,001 to £500,000  £750  £1,000  £950  £1,400
£500,001 to £600,000  £850  £1,200  £1,050  £1,600
£600,001 to £700,000  £950  £1,400  £1,150  £1,800
£700,001 to £800,000  £1,150  £1,600  £1,250  £2,000
£800,001 to £900,000  £1,350  £1,700  £1,550  £2,200
£900,001 to £999,999  £1,550  £1,900  £1,750  £2,400
 £1,000,000+  POA  POA

Additional fees Freehold Leasehold
 Each additional AST
 £25  £25

Additional fees for companies Freehold Leasehold
Corporate customer £125 £125
Personal guarantee (per guarantor) £50 £50





Note:
The above fees will be subject to the payment of VAT at the going rate. Disbursements will be payable for relevant searches, land registration costs, stamp duty land tax (where applicable).

The above fees are only for the work requested to register our security in accordance with UK Finance Mortgage Lender's Handbook, any special conditions contained in the Mortgage Offer and the Companies Act 2006 (as amended).  

The additional fee items listed above are not an exhaustive list. If the Borrower requires any additional fee work to be undertaken (e.g. board minutes etc.) the fee(s) for those items must be separately negotiated with the selected firm. 

Loan/ purchase instructions not proceeded with will be charged in an amount commensurate to the work done as at the time the matter becomes abortive.

There may be some circumstances where joint representation may not be appropriate. 

Download a PDF of our legal costs for joint representation
Valuation feesDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Standard Buy to Let valuation fees for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £75,000 £150 £400,001 to £450,000 £325 £1,500,001 to £2,000,000 £1,625
£75,001 to £100,000 £150 £450,001 to £500,000 £350 £2,000,001 to £2,500,000 £1,925
£100,001 to £150,000 £175 £500,001 to £600,000 £485 £2,500,001 to £3,000,000 £2,225
£150,001 to £200,000 £200 £600,001 to £700,000 £585 £3,000,001 to £3,500,000 £2,725
£200,001 to £250,000 £225 £700,001 to £800,000 £650 £3,500,001 to £4,000,000 £3,125
£250,001 to £300,000 £250 £800,001 to £900,000 £710 £4,000,001 to £4,500,000 £3,425
£300,001 to £350,000 £275 £900,001 to £1,000,000 £825 £4,500,001 to £5,000,000 £3,725
£350,001 to £400,000 £300 £1,000,001 to £1,500,000 £1,225

 Up arrow - 09 Right Arrow - 09Specialist Buy to Let valuation fees for new mortgage applications
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £150,000 £440 £450,001 to £500,000
£645 £1,500,001 to £2,000,000
£1,825
£150,001 to £200,000 £455 £500,001 to £600,000
£710 £2,000,001 to £2,500,000
£2,325
£200,001 to £250,000 £455 £600,001 to £700,000
£770 £2,500,001 to £3,000,000
£2,625
£250,001 to £300,000
£525 £700,001 to £800,000
£880 £3,000,001 to £3,500,000
£3,125
£300,001 to £350,000
£585 £800,001 to £900,000
£955 £3,500,001 to £4,000,000
£3,525
£350,001 to £400,000
£585 £900,001 to £1,000,000
£1,025 £4,000,001 to £4,500,000
£3,825
£400,001 to £450,000
£645 £1,000,001 to £1,500,000
£1,425 £4,500,000 to £5,000,000 £4,125
 Up arrow - 09 Right Arrow - 09Homebuyer (standard Buy to Let) report for new mortgage applications
 
PP/Estimated Value Fee PP/Estimated Value Fee PP/Estimated Value Fee
up to £100,000 £395 £450,001 to £500,000
£775 £2,000,001 to £2,500,000
£2,835
£100,001 to £150,000
£445 £500,001 to £600,000
£870 £2,500,001 to £3,000,000
£3,415
£150,001 to £200,000
£500 £600,001 to £700,000
£965 £3,000,001 to £3,500,000
£3,895
£200,001 to £250,000
£555 £700,001 to £800,000
£1,085 £3,500,001 to £4,000,000
£4,375
£250,001 to £300,000
£615 £800,001 to £900,000
£1,210 £4,000,001 to £4,500,000
£4,855
£300,001 to £350,000 £660
£900,001 to £1,000,000
£1,335 £4,500,000 to £5,000,000
£5,340
£350,001 to £400,000
£700 £1,000,001 to £1,500,000
£1,760

£400,001 to £450,000 £745  £1,500,001 to £2,000,000 £2,185    

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

Direct Debit informationDownwards_arrowUpwards_arrow

All mortgage payments must be paid by Direct Debit, usually on the 25th of the month.

However, at the customer's request payment dates can be from 10th to 28th of the month.

Applicant(s)
Number of applicantsDownwards_arrowUpwards_arrow

Maximum of 4 applicants.

Age limitsDownwards_arrowUpwards_arrow

    Minimum age 25

    Maximum age 85 at the end of the mortgage term

    Maximum age 79 on application.

ResidencyDownwards_arrowUpwards_arrow
  • In all cases, we must have a three year residency history. Applicants should have lived/worked in the UK for the last three years and should appear on the voters roll.
  • UK Nationals and Nationals of an EU country are accepted.
  • Foreign Nationals must have permanent rights to live and work in the UK.
Income validation documentationDownwards_arrowUpwards_arrow
  • Applicants must demonstrate a source of income outside of the property in question
  • Latest employed/self-employed proof required where the applicant is a non-portfolio landlord
  • No earned income proof required for portfolio landlords (standard portfolio landlord validation items still required).
  • The underwriter will retain the right to request additional evidence if deemed necessary.

Adverse creditDownwards_arrowUpwards_arrow

Applicants with adverse credit will not normally be considered.

The restrictions may not apply in the following circumstances (subject to full underwrite):

  • Where the CCJ/default was registered more than three years ago and satisfied prior to mortgage application
  • Where the CCJ/default was satisfied more than 12 months prior to application regardless of date of registration
  • Where the CCJs/defaults in aggregate amount to less than £300 regardless of the date of registration. It must be satisfied prior to mortgage application
  • An explanation of the debt must be submitted with the application together with the evidence of satisfaction (if applicable)
  • Applicants who have had arrears in the last 12 months are not accepted
  • Bankruptcies/IVAs may be accepted at the underwriter’s discretion and must be clear for at least three years, with no residual debt, with no repossession as part of the order. Additional documents may be requested.
Self-employedDownwards_arrowUpwards_arrow

    Net profit before tax based on accounts for the last three years for sole traders and partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the
    form of director’s remuneration and dividends.

    Three years can be calculated by either:

  • Straight average (of last three years)
  • Most recent year (if business is showing increase in profit)
 Up arrow - 09 Right Arrow - 09Income assessment

Net profit before tax based on accounts for the last three years for sole traders and partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.

Three years can be calculated by either:

  • Straight average (of last three years)
  • Most recent year (if business is showing increase in profit)
 Up arrow - 09 Right Arrow - 09Accountants' qualifications

The accountant must be from one of the following professional bodies:

ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA/CIPFA, AIA

For a full list of accepted accountant qualifications, please refer to our buy to let criteria guide.

Limited companiesDownwards_arrowUpwards_arrow

Limited companies – accepted. The limited company must also be non-trading and must be limited to solely holding property and not engaged in wider activities. All directors must sign a personal guarantee and take independent legal advice (maximum four persons).

We only allow joint representation if the customer uses a conveyancer from our approved limited company/LLP panel and the case is suitable for such representation. The customer will be liable for the legal costs of joint representation. 

Loans of £2m or over, will continue to have separate legal representation with the Bank selecting a conveyancing firm from its approved panel to act on the Bank's behalf. The customer will be liable for the Bank's costs where a case proceeds under separate representation. 

Limited liability partnerships (LLPs)Downwards_arrowUpwards_arrow

    Lending to non-trading limited liability partnerships (LLPs) is part of standard lending policy. All new applications will be subject to the following requirements:

  • Personal guarantees for 100% of the loan provided by all LLP members
  • Evidence the company is non-trading must be provided.

  • Existing Kent Reliance for Intermediaries borrowers may switch a buy to let asset from an individual name into a limited company or an LLP.

    We only allow joint representation if the customer uses a conveyancer from our limited company/LLP approved panel and the case is suitable for such representation. The customer will be liable for the costs of joint representation. 

    Loans of £2,000,000 or over, will continue to have separate legal representation with the Bank selecting a conveyancing firm from its approved panel to act on the Bank's behalf. The customer will be liable for the Bank's costs where a case proceeds under separate representation. 

Acceptable proof of ID and addressDownwards_arrowUpwards_arrow
Evidence of ID Evidence of address

Valid UK Passport

Valid UK Driving Licence - Photocard (Full or Provisional)

Valid non-UK passport or National ID Card

HM Forces/Police warrant card

Shotgun licence or firearms certificate

Valid UK Driving Licence - Photocard (Full or Provisional) if not used as proof of ID

Current bank or mortgage statement or credit/debit card statement issued by a regulated sector firm in the UK - includes bank or building society savings books (not internet printed)

Current mortgage statement issued by a regulated financial sector firm in the UK

Utility bill or landline telephone bill (not internet printed and landline number must be the same as quoted on the application)

Council Tax bill

A positive voters roll result (include reference number or printed copy as evidence)

Please note that in accordance with the DVLA regulations you will need to check the expiry date of your photo-card driving licence. If the photo is in excess of 10 years old we may not accept it as proof of identity or address and therefore other items may be requested.

New application from existing borrowersDownwards_arrowUpwards_arrow

    For new applications on behalf of existing buy to let borrowers* we will only require the following:

  • A completed application and declaration form;
  • Valuation report;
  • Written confirmation from the borrower that their circumstances are unchanged.

  • A fresh credit search will be carried out to ensure that the credit profile still meets required lending policy. If the borrower's circumstances have changed, the underwriter will retain the right to request additional information.

    If the customer is a portfolio landlord and a previous portfolio has been uploaded to the Buy to Let Hub, or if no changes have been made to the portfolio within the past six months then we won’t require a new portfolio to be uploaded to the Buy to Let Hub.

    *The reduced document requirement only applies to existing borrowers whose last loan completed within the last 12 months and where the standard required documentation was provided.

Affordability
Rental and Income RequirementsDownwards_arrowUpwards_arrow

Rental Income Requirements

Interest Coverage Ratio (ICR) will depend on the property type and whether or not we are lending to a limited company. 

  • For purchases and remortgages with additional borrowing, the minimum stress rate applicable for rental cover purposes is 5.5%, or the initial pay rate plus 1.55%, whichever is higher.
  • Remortgages where no additional borrowing is being raised, will not be subject to a minimum stress rate, with rental cover being assessed against the initial pay rate plus 1.05%.
  • 5 year fixed rate applications will continue to be stress-tested at the initial pay rate, with no additional margin or minimum rate applicable.

Standard property

Standard properties are defined as the following:

  • Single dwellings
  • HMO/Multi/Student lents with up to five rooms
  • Freehold block/titles of land with up to four residential units
 
Personal Limited Company 
140% rental cover 125% rental cover

Specialist property

Specialist properties are defined as:

  • HMO/multi/student lets with six or more rooms
  • Freehold block/titles of land with five or more residential units
 
Personal  Limited Company 
160% rental cover 145% rental cover

Please note that the above definitions only apply to the required rental cover, not the submission journey. The submission journeys are classed as follows:

  • Residential and Standard buy to let journey: all residential applications, ex-pat buy to lets and single family buy to lets
  • Specialist buy to let journey: HMOs, student lets, multiple units under one freehold, and limited company buy to lets

Remortgages

As stated above, where no additional borrowing is raised, the additional margin added to the pay rate will be 1.05%, rather than 1.55%, and no minimum stress rate will apply.

Existing Customers

Existing Kent Reliance for Intermediaries buy to let customers looking to switch rates will not be affected by the changes and be able to switch according to the previous lending criteria.


Income-backed mortgages

Traditionally, buy to let affordability assessments are based solely on the rental income derived from the security meeting a minimum Interest Coverage Ratio (ICR).

In some cases we’ll take a broader view of customer affordability through earned income to supplement the ICR for buy to let loans, where the rental property yield in itself doesn’t meet minimum requirements.

Income-backed buy to let may be suitable for:

  • Non-portfolio landlords (those with three or fewer mortgaged properties on completion of mortgage(s) in question)
  • Applicants applying through a limited company or in their personal name
  • High-earning individuals with low residential leverage.

This approach allows a full underwrite of the borrower’s income and outgoings, ensuring that their individual circumstances are considered.

Where rental income does not meet the minimum stressed ICR, other earned income can be used to support the shortfall. Subject to:

  • The maximum LTV is 75% for Non-portfolio landlords
  • Self-employed applicants must have traded with a minimum of two year’s finalised income
  • Any background buy to let property income cannot support the mortgage application with no income evidence for this rental income required
  • Residential mortgage payments proven via the credit bureau, mortgage statement or bank statements clearly identifying the mortgage payments
  • Available to those that currently hold a mortgage including first time landlords who are residential homeowners.
  • Available for standard and specialist buy to let property types
  • Expatriate borrowers are not acceptable.
Using passing rent to calculate the estimated loan amountDownwards_arrowUpwards_arrow

    In some circumstances, when calculating the amount we're willing to lend, we're able to accept the passing rent for a property, rather than the market rent confirmed by the valuer.

    In order to use the passing rent to calculate the estimated loan amount, each of the following criteria must be met:

  • Evidence of two rental periods (bank statements or letting agent confirmation) is provided
  • The passing rent adopted does not exceed 10% of the market rent supported by the valuer
  • The passing rent is on a fully exclusive basis; i.e. it doesn't include cost of utilities, council tax etc.
  • The tenant is an independent third party.
Property/properties
Offer and valuation period on new-buildsDownwards_arrowUpwards_arrow

    For new-build properties our valuation period is seven months and our offer period is six months.

Studio flatsDownwards_arrowUpwards_arrow
  • Must be a minimum of 30m2 Gross Internal Area (GIA)
  • Must be self contained including separate services.
FlatsDownwards_arrowUpwards_arrow

    Flats in blocks must be of modern construction.

    Maximum number of floors accepted as standard:

  • Outside of London: six (plus ground floor)
  • Within London: 12 (plus ground floor).

  • If the property on which we’re lending is on the fourth floor or above, the building must have a lift.

    Flats within high-rise blocks above the 12th floor may be considered on a case-by-case basis as an exception at our discretion. This is subject to the valuer confirming that the position of the flat within the tower block doesn’t detrimentally impact on marketability.

    Ex-local authority flats can be considered where:

  • There is good re-sale value, and
  • The block is more than 80% privately owned, and
  • The security isn’t in a pre-emption period.
Freehold flatsDownwards_arrowUpwards_arrow

    Each individual flat within the block must be:

  • Marketable in isolation either to owner occupier purchasers or investors
  • Fully self-contained, including separate services
  • Over 30m2 Gross Internal Area (GIA).

  • The flats will be valued on a comparable basis considering transactions of other purpose built and converted flats in the surrounding area. If the valuer is of the opinion that there’s no or limited market for the units individually, the property won’t be recommended as suitable security.

    The block must:

  • Be a complete, continuous freehold block
  • Benefit from the correct local authority consents.

  • For more information on freehold flats, download our full buy to let criteria guide.

Properties above (or attached) to commercial premisesDownwards_arrowUpwards_arrow

    In general, properties above (or attached to) the following establishments won’t be accepted:

  • Takeaways, restaurants and cafés
  • Convenience stores, bars and nightclubs
  • MOT garages, or any property where industrial processes are carried out
  • Dry cleaners (where dry cleaning takes place on the premises)
  • Nail bars
  • Tattoo parlours
  • Hairdressers.

  • This isn’t an exhaustive list. Please speak to your senior business development manager for more information.

SecurityDownwards_arrowUpwards_arrow
  • Location: England and Wales only.
  • A first legal charge is required.
  • New-build and self-build: can be considered and must have an acceptable warranty and
    certification. For more information, download our buy to let criteria guide.
Builders' incentivesDownwards_arrowUpwards_arrow

    Builders’ incentives are acceptable and are deducted from the lower of the purchase price and valuation. The loan amount is based on the resulting lower total.

TenancyDownwards_arrowUpwards_arrow

    The property must be let on an Assured Shorthold Tenancy (AST) or a contractual tenancy. A fixed term of 12 months can be considered up to 85% LTV.

    A fixed term of up to 36 months can be considered up to 75% LTV when:

  • The AST provides for a rent review every 12 months or less
  • The application meets our minimum ICR requirements (please see our ‘Affordability section)
  • A solicitor must be satisfied that there’s a written tenancy agreement, which restricts the tenant from:
    • Sharing, assigning, sub-letting, multi-letting, charging or parting with possession of all or any part of the property
    • Using the property other than as a private dwelling house
    • Making alterations to the property or allowing the property to fall into disrepair.

    We don’t permit any sub-letting.

TenureDownwards_arrowUpwards_arrow
  • Freehold: houses only
  • Leasehold: the unexpired term of the lease must be at least 50 years at the end of the mortgage term.
Leasehold propertiesDownwards_arrowUpwards_arrow

    Minimum unexpired lease term is 50 years at the end of mortgage term.

    Maximum 75% LTV applies for interest-only loans on leasehold properties with an unexpired term of less than 85 years at application.

HMOsDownwards_arrowUpwards_arrow

    Houses in Multiple Occupation are acceptable. Maximum of eight beds subject to valuation as stated in our fees and charges. All necessary consents must be in place (offer condition will be applied). AST(s) must be in place and occupation must be within 30 days of completion.

    Kent Reliance can consider larger HMO properties (generally properties with more than eight bedrooms) if the applicant already owns an HMO property. These will be valued using a long-form valuation report and will be instructed and reviewed by our Real Estate team. Due to the more detailed nature of the long-form report, the advertised fee tariffs will not apply and will be determined on an individual basis.

    For an HMO purchase, it is a condition that either a licence is in place or a licence application has
    been submitted on completion.

    All HMO remortgages require a licence to be in place on completion.

    For more information on HMO properties, please view our buy to let criteria guide.

No results found
General
Latest criteria updatesDownwards_arrowUpwards_arrow
  • Day 1 valuation instruction introduced
  • Near prime maximum loan limit to be raised from £500,000 to £1,000,000. Loans over £500,000 are subject to a maximum LTV of 80%
  • Introduction of a new 5 year fixed Shared Ownership range
  • Interest-only criteria for asset-backed loans 
  • Maximum 85% LTV for self-employed contractors trading for one year
  • 100% of income can now be taken for clients with a second job (previously 50%)
  • Construction sub-contractors are now treated as employed customers when paid net of tax.
Key facts Downwards_arrowUpwards_arrow

      Residential Prime (Up to £500,000)

Maximum LTV %
Maximum Loan (£)
90%
£500,000



Residential Prime (Over £500,000)

Maximum LTV %
Maximum Loan (£)
90%
£3,000,000



Residential Near Prime 1*

Maximum LTV %
Maximum Loan (£)
90%
£1,000,000



Residential Near Prime 2*

Maximum LTV %
Maximum Loan (£)
85%
£1,000,000



Residential Near Prime 3*

Maximum LTV %
Maximum Loan (£)
80%
£1,000,000



Shared Ownership

Maximum LTV %
Maximum
share value

Maximum Loan (£)

75%
100%
£1,000,000




*Loans over £500,000 are subject to maximum LTV of 80%
Loan purpose Downwards_arrowUpwards_arrow
  • Applications are considered for the purchase or remortgage of the applicant’s main residence.
  • A breakdown of additional borrowing is required.
  • Remortgage of the applicant’s main residence is acceptable for any legal purpose except to repay tax, to shore up a business, for business purposes or for gambling debts.
  • For Shared Ownership, additional borrowing by way of a remortgage or a further advance is for staircasing purposes only or home improvements where the housing association confirms that the Bank is protected under the Mortgage Protection Clause.
Minimum advance Downwards_arrowUpwards_arrow

      Residential Prime (Up to £500,000)

Minimum Loan (£)
£50,000



Residential Prime (Over £500,000)

Minimum Loan (£)
£500,000



Residential Near Prime 1

Minimum Loan (£)
£50,000



Residential Near Prime 2

Minimum Loan (£)
£50,000



Residential Near Prime 3

Minimum Loan (£)
£50,000



Shared Ownership

Minimum Loan (£)

£50,000
Term Downwards_arrowUpwards_arrow


Years
Minimum term

5
Maximum term

35

    Please note: Minimum term of five years not available on five-year products

Further AdvanceDownwards_arrowUpwards_arrow

Please select a residential further advance product from the below:

 Up arrow - 09 Right Arrow - 09Standard residential further advance
  • These mortgage products are only available on a repayment basis. Interest-only or part repayment/part interest-only may be available only by exception
  • The term of any additional borrowing must not exceed the term of the existing mortgage.
  • Minimum loan is £15,000
  • Maximum loan is £1,000,000
  • These mortgage products are portable. Even if your client moves home during the initial special deal period of a mortgage, the remaining benefits (up to the outstanding balance of their existing mortgage) of that special deal can be transferred to their new mortgage with us, subject to our lending criteria at the time of any move. In this case, any early repayment charges won't be charged but the existing rate won't apply to any additional funds that your client borrows.
 Up arrow - 09 Right Arrow - 09Shared ownership further advance
  • These products are only for home improvements and staircasing
  • These mortgage products are only available on a repayment basis
  • The minimum mortgage term is five years and the maximum 35
  • Maximum loan is £1,000,000
  • These mortgage products are portable. Even if your client moves home during the initial special deal period of a mortgage, the remaining benefits (up to the outstanding balance of your existing mortgage) of that special deal can be transferred to the new mortgage with us, subject to our lending criteria at the time of any move. In this case, any early repayment charges will not be charged but the existing rate will not apply to any additional funds that are borrowed.
Source of depositDownwards_arrowUpwards_arrow

    The deposit should come from the applicant’s own resources. The applicant must provide the required level of deposit to meet the product requirements.

    For a gifted deposit to be acceptable, the family member must be one of the following:

  • Mother
  • Father
  • Sibling
  • Grandparent.

  • A copy of our gift declaration form must be provided, to confirm:

  • The gift isn’t a loan
  • The gift is non-refundable
  • The donor won’t have an interest in the property.

  • A certified copy of the donor’s ID is required. In the event the applicant and family member(s) have different surnames, we require evidence of a family name connection such as a marriage certificate.

    For more information on source of deposit requirements, please download our full residential criteria guide.

Interest-only criteria for asset-backed loansDownwards_arrowUpwards_arrow

    New interest-only criteria for asset-backed loans, with mortgages from £50,000, subject to a property value of £500,000. See acceptable repayment strategies.

Mortgage OffersDownwards_arrowUpwards_arrow

    Our offer period on new-build properties is six months.

Fees and charges
Day one remortgagesDownwards_arrowUpwards_arrow

    Our Day one remortgages proposition is aimed at clients looking to remortgage shortly after they have, for example, purchased a property at auction, or have bought a property where a standard mortgage was not initially possible.

    Remortgages will be considered where the security property has been owned or the existing mortgage has been in place for less than six months, subject to:

    • The loan amount being based upon the lower of the purchase price or current valuation. Exceptions will be considered where it can be demonstrated, that since the date of purchase, significant improvement works that have enhanced the property value have been carried out subject to:
    • A schedule of works and evidence of expenditure
    • Confirmation that works have been completed to a suitable standard
    • Any necessary consents have been obtained
    • The property should be marketable and mortgageable
  • Maximum 75% LTV
  • In all instances, the property must be registered at the Land Registry as owned by the applicant(s), during the application process or where this is not available, request confirmation of the Land Registry submission confirming the purchase, date and price via the acting solicitor
  • New-build properties excluded
  • All other standard criteria apply.
Application feeDownwards_arrowUpwards_arrow

Application fee: £130.

This is a charge for assessing and processing the application (even if it is unsucessful or is withdrawn). Payable at the time of application.

Product feesDownwards_arrowUpwards_arrow

Please refer to the product pages for the relevant product fee payable.

Product switching feeDownwards_arrowUpwards_arrow

Product switching fee: £30

This is charged when a product is switched post offer; the client will be required to pay the additional Product fee as shown on the product page.

Valuation feesDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Prime residential valuation fees for new mortgage applications
PP/Estimated Value
Fee
PP/Estimated Value
Fee
PP/Estimated Value
Fee
up to £75,000
£150
£400,001 to £450,000
£325
£1,500,001 to £2,000,000
£1,625
£75,001 to £100,000
£150
£450,001 to £500,000
£350
£2,000,001 to £2,500,000
£1,925
£100,001 to £150,000
£175
£500,001 to £600,000
£485
£2,500,001 to £3,000,000
£2,225
£150,001 to £200,000
£200
£600,001 to £700,000
£585
£3,000,001 to £3,500,000
£2,725
£200,001 to £250,000
£225
£700,001 to £800,000
£650
£3,500,001 to £4,000,000
£3,125
£250,001 to £300,000
£250
£800,001 to £900,000
£710
£4,000,001 to £4,500,000
£3,425
£300,001 to £350,000
£275
£900,001 to £1,000,000
£825
£4,500,001 to £5,000,000
£3,725
£350,001 to £400,000
£300
£1,000,001 to £1,500,000
£1,225


 Up arrow - 09 Right Arrow - 09Homebuyer report for new mortgage applications
PP/Estimated Value
Fee
PP/Estimated Value
Fee
PP/Estimated Value
Fee
up to £100,000
£395
£450,001 to £500,000

£775
£2,000,001 to £2,500,000

£2,835
£100,001 to £150,000

£445
£500,001 to £600,000

£870
£2,500,001 to £3,000,000

£3,415
£150,001 to £200,000

£500
£600,001 to £700,000

£965
£3,000,001 to £3,500,000

£3,895
£200,001 to £250,000

£555
£700,001 to £800,000

£1,085
£3,500,001 to £4,000,000

£4,375
£250,001 to £300,000

£615
£800,001 to £900,000

£1,210
£4,000,001 to £4,500,000

£4,855
£300,001 to £350,000
£660

£900,001 to £1,000,000

£1,335
£4,500,000 to £5,000,000

£5,340
£350,001 to £400,000

£700
£1,000,001 to £1,500,000

£1,760




£400,001 to £450,000
£745
 £1,500,001 to £2,000,000
£2,185
 
 

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Day 1 valuation instruction

With immediate effect for all Kent Reliance Residential Mortgage applications up to £1,000,000 (excluding any added fees) we will instruct the valuation upon receipt of the application.

Direct Debit informationDownwards_arrowUpwards_arrow

All mortgage payments must be paid by Direct Debit, usually on the 25th of the month.

However, at the customer's request payment dates can be from 10th to 28th of the month.

Applicant(s)
Number of applicantsDownwards_arrowUpwards_arrow

Maximum of four borrowers (including guarantors).

If the applicant is married or in a civil partnership then their spouse or partner must be included in the application.

Age limitsDownwards_arrowUpwards_arrow

    Minimum age 18.

    Maximum age 85 at the end of the mortgage term (including lending into retirement).

    Maximum age 79 on application.

GuarantorsDownwards_arrowUpwards_arrow

    Guarantors are acceptable as long as they do not make the number of applicants on the mortgage exceed four.

    Guarantors need to provide evidence of income, existing commitments and bank statements and will be underwritten in line with applicant requirements.

    For more information on guarantors please refer to our full residential criteria guide.

AffordabilityDownwards_arrowUpwards_arrow

    All residential loans must pass the affordability test using the Bank’s own model. Income from all applicants will be combined for the purpose of affordability. Please use our residential affordability calculator to check your client’s affordability.

Acceptable incomeDownwards_arrowUpwards_arrow
  • Gross annual basic income: 100% - including 100% of guaranteed permanent allowances to include large town weighting allowance, car allowance and housing allowance
  • Overtime, bonus, commission: 50%
  • Child maintenance by court order: 100% (child can be up to 13 years old)
  • State pension: accepted as long as it’s not the sole source of income
  • Benefits that are not acceptable, include:
    • Housing benefit
    • Jobseeker’s allowance
    • Mobility allowance.
  • For self-employed applicants, affordability is based on net profit before tax, based on the finalised accounts for the last three years for sole traders/partnerships. For limited company directors with a shareholding greater than 25%, income will be assessed in the form of director’s remuneration and dividends.
  • Additional income

    Income from other sources such as investment income, second jobs, personal pensions and trust funds may be accepted subject to documentary evidence.

    For more information on acceptable income, please refer to our residential criteria guide.

Prime CriteriaDownwards_arrowUpwards_arrow
CCJs 
0 in the last 36 months*
Defaults 
0 in the last 36 months*
Missed Mortgage/ Secured Loan Payments 
0 in the last 12 months and currently up to date
Unsecured Arrears 
0 in the last 12 months and currently up to date 
Maximum Status
Must be currently up to date. Maximum 2 down in last 24 months
Debt Management Plan
Not acceptable
IVA/ DRO/ Bankruptcy 
Not acceptable
Repossessions 
Not acceptable
Max Plan LTV
90%
*Must be satisfied prior to mortgage application. Ignore if: <£300 in total and satisfied

For full Prime Criteria download our Residential Criteria sheet.
Near Prime 1 CriteriaDownwards_arrowUpwards_arrow
CCJs 
0 in the last 24 months**
Defaults 
0 in the last 24 months**
Missed Mortgage/ Secured Loan Payments 
0 in the last 12 months and currently up to date
Unsecured Arrears 
2 in the last 12 months and currently up to date
Maximum Status 
Currently be up to date. Previously maximum ignored
Communication, Utility and Mail Order
Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan
Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy 
Not acceptable
Repossessions 
Not acceptable
Max Plan LTV
90%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 1 Criteria download our Residential Criteria sheet.
Near Prime 2 CriteriaDownwards_arrowUpwards_arrow
CCJs 
0 in the last 12 months** (1 in the last 24 months**)
Defaults 
0 in the last 12 months** (1 in the last 24 months**)
Missed Mortgage/ Secured Loan Payments 
0 in the last 12 months and currently up to date
Unsecured Arrears 
2 in the last 12 months and currently up to date 
Maximum Status
Currently up to date. Previous maximum ignored
Communication, Utility and Mail Order
Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan
Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy 
> 6 years discharged 
Repossessions 
Not acceptable
Max Plan LTV
85%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 2 Criteria download our Residential Criteria sheet.
Near Prime 3 CriteriaDownwards_arrowUpwards_arrow
CCJs 
0 in the last 6 months** (1 in the last 24 months)
Defaults 
0 in the last 6 months** (2 in the last 24 months)
Missed Mortgage/ Secured Loan Payments 
0 in 6 months and currently up to date
Unsecured Arrears 
2 in the last 12 months and currently up to date
Maximum Status
Currently up to date. Previous maximum ignored
Communication, Utility and Mail Order
Performance ignored where the account balance is less than £500 (single or in aggregate)
Debt Management Plan
Satisfactorily conducted for a minimum of 12 months
IVA/ DRO/ Bankruptcy 
> 3 years discharged 
Repossessions 
Not acceptable.
Max Plan LTV
80%

**Must be satisfied prior to mortgage application. Ignore if one of the following apply:

  • Satisfied >12 months
  • <£300 in total and satisfied prior to application
  • Registered >24 months whether satisfied or not

For full Near Prime 3 Criteria download our Residential Criteria sheet.
Shared Ownership CriteriaDownwards_arrowUpwards_arrow
Missed Mortgage/ Rent Arrears
In the last 12 months are not normally accepted but may be considered subject to individual case assessment
County Court Judgements or Registered Defaults 
In the last 36 months are not normally accepted but may be considered subject to individual case assessment
The following CCJ/ default criteria can be considered subject to individual case assessment:

  • Where the CCJ/ default was registered more than three years ago and satisfied prior to mortgage application
  • Where the CCJ/ default was satisfied more than 12 months prior to application regardless of the date of registration
  • Where the CCJ/ default in aggregate amount to less than £300 regardless of the date of registration. It must be satisfied prior to mortgage application. 

Individual Voluntary Agreement (IVA) & Discharged Bankrupts
IVA/ Bankrupts who have been discharged over three years ago and who have no residual debt may be accepted subject to individual assessment.
Repossessions 
Not acceptable
Debt Management Plan (DMP)
An applicant that has had a DMP needs to be at least three years clear of this before applying.
ContractorsDownwards_arrowUpwards_arrow

    PAYE contractors

  • Applicants employed on a PAYE contract basis must have had their contract renewed at least once, with at least six months to run.

  • Self-employed contactors

  • There’s no minimum income requirement for contractors. We do however require receipt of three months’ personal and business bank statements.
  • Maximum 85% LTV applies. This isn’t restricted if two years or more track history. Subject to LTV product restrictions.
  • Contractors must have a minimum of three months’ remaining on their contract at the time of application.
  • The applicant must be able to evidence at least one contract renewal with a minimum of 12 months’ sector experience.
  • Construction industry sub contractors are treated as employed if paid net of tax (self-employed if paid on a gross basis).
Self-employedDownwards_arrowUpwards_arrow

    Self-employed applicants are considered.

    12 months’ trading

    We’re able to consider self-employed applicants who have been trading for a minimum of 12 months.

  • Applicant must have 12 months’ previous track record in the industry in which they’re now self-employed. Evidence must be provided; for example, proof of income from previous employment
  • Maximum 85% LTV
  • Most recent three months’ personal and business bank statements must be provided
  • Self-assessment returns or SA302 aren’t accepted as proof of income on these loans
  • Projection for the second year income from a suitably qualified accountant can be considered where a suitable business plan is provided. The level of projected income used can be up to 30% greater than year one confirmed income.
 Up arrow - 09 Right Arrow - 09Accountants' qualifications

The accountant must be from one of the following professional bodies:

ACA/FCA, CA, ACCA/FCCA, AAPA/FAPA, CIMA/CIPFA, AIA

For a full list of accepted accountant qualifications, please refer to our residential criteria guide.

Required validation documentationDownwards_arrowUpwards_arrow

The valuation fee is payable at the time of application and is non-refundable once valuation has been undertaken.

 Up arrow - 09 Right Arrow - 09Proof of ID and Address

All applicants must provide one proof of identity and one proof of address.

Evidence of ID
Evidence of address

Valid UK and non-UK passport

Valid UK Driving Licence - Photocard (Full or Provisional)

HM Forces/Police warrant card

Shotgun licence or firearms certificate


Valid UK Driving Licence - Photocard (Full or Provisional) if not used as proof of ID

Current bank or mortgage statement dated within last three months (not Internet printed)

Utility bill or landline telephone bill (not internet printed and landline number must be the same as quoted on the application)

Council Tax bill

A positive voters roll result (include reference number or printed copy as evidence)


†Please note that in accordance with the DVLA regulations you will need to check the expiry date of your photocard driving licence. If the photo is in excess of 10 years old we may not accept it as proof of identity or address and therefore other items may be requested.

 Up arrow - 09 Right Arrow - 09Employed applicants: required documents
  • Last three months’ payslips
  • Last three months’ personal bank statement showing income and expenditure.
 Up arrow - 09 Right Arrow - 09Self employed applicants: required documents

    General self-employed applicants

  • Last three years' finalised accounts.
  • SA302s (if accounts not available).
  • Last three months' personal bank statements showing income and expenditure.
  • Last three months' business bank statements.

  • 12 months’ trading

    We’re able to consider self-employed applicants who have been trading for a minimum of 12 months.

  • Applicant must have 12 months’ previous track record in the industry in which they’re now self-employed. Evidence must be provided; for example, proof of income from previous employment
  • Maximum 85% LTV
  • Most recent three months’ personal and business bank statements must be provided
  • Self-assessment returns or SA302 aren’t accepted as proof of income on these loans
  • Projection for the second year income from a suitably qualified accountant can be considered where a suitable business plan is provided. The level of projected income used can be up to 30% greater than year one confirmed income.
 Up arrow - 09 Right Arrow - 09Contractors: required documentation
  • Current contract must have at least three months remaining at application.
  • Applications must be able to evidence at least one renewal with a minimum 12 months sector experience (either as contractor or PAYE employment).
  • Three months’ personal and business bank statement must be provided.
  • Copy of latest and previous contract.
ResidencyDownwards_arrowUpwards_arrow
  • In all cases, we must have a three year residency history. Applicants should have lived/worked in the UK for the last three years.
  • UK Nationals and Nationals of an EU country are accepted.
  • Foreign (non-EU) nationals must have permanent rights to live and work in the UK.
Property/properties
Offer and valuation period on new-buildsDownwards_arrowUpwards_arrow

    For new-build properties our valuation period is seven months and our offer period is six months.

Studio flatsDownwards_arrowUpwards_arrow
  • Must be a minimum of 30m2 Gross Internal Area (GIA)
  • Must be self contained including separate services.
Leasehold propertiesDownwards_arrowUpwards_arrow

The unexpired term of the lease must be at least 50 years at the end of the mortgage term.

A maximum LTV of 75% applies for loans on leasehold properties with an unexpired term of less than 85 years at application.

FlatsDownwards_arrowUpwards_arrow
  • Flats in blocks must be of modern construction.

  • Maximum number of floors accepted as standard:

  • Outside of London: six (plus ground floor)
  • Within London: 12 (plus ground floor).

  • If the property on which we’re lending is on the fourth floor or above, the building must have a lift.

    Flats within high-rise blocks above the 12th floor may be considered on a case-by-case basis as an exception at our discretion. This is subject to the valuer confirming that the position of the flat within the tower block doesn’t detrimentally impact on marketability.

    Ex-local authority flats can be considered where:

  • There is good re-sale value, and
  • The block is more than 80% privately owned, and
  • The security isn’t in a pre-emption period.
Properties above (and attached to) commercial premisesDownwards_arrowUpwards_arrow

    These are considered on a case-by-case basis:

  • Subject to valuer’s comments
  • Maximum 75% LTV applies.

  • In general, properties above (or attached to) the following establishments won’t be accepted:

  • Takeaways, restaurants and cafés
  • Convenience stores, bars and nightclubs
  • MOT garages, or any property where industrial processes are carried out
  • Dry cleaners (where dry cleaning takes place on the premises)
  • Nail bars
  • Tattoo parlours
  • Hairdressers.

  • This isn’t an exhaustive list. Please speak to your senior business development manager for more information.

TenureDownwards_arrowUpwards_arrow

Freehold: houses only

Leasehold: the unexpired term of the lease must be at least 50 years at the end of the mortgage term.

SecurityDownwards_arrowUpwards_arrow
  • Location: England and Wales only.
  • A first legal charge is required.
  • Shared ownership: full MPC is required and must have staircasing ability to 100%.
  • New build: must have acceptable warranty or CML compliant certificate.
  • Self-build: can be considered. Must have required certification.
Shared OwnershipDownwards_arrowUpwards_arrow

Shared ownership properties must be purchased through a registered Housing Association that permits up to 100% staircasing.

The client's share of the property must be a minimum of 25% and a maximum of 75% of the full property value.

Minimum loan £50,000

Maximum loan £1,000,000

Minimum property value £125,000

Applicants must use one of our approved solicitors.

We are now accepting private shared ownership from specific private firms and local authorities. 

Builders' incentivesDownwards_arrowUpwards_arrow

Builder’s Incentives are deducted from the lower of the purchase price or valuation with loan based on the lower amount. The applicant must provide the required level of deposit to meet product requirements.

New BuildsDownwards_arrowUpwards_arrow

For new build properties our valuation period is seven months and our offer period is six months.


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