Santander for Intermediaries (SFI) will next week open its buy-to-let criteria to self-employed applicants to make it even more accessible for non-professional landlords.
SFI now considers buy-to-let applications from self-employed landlords who will have:
- A maximum of seven buy-to-let properties on completion of the new mortgage;
- A maximum of five buy-to-let properties mortgaged with Santander on completion of the new mortgage;
- A minimum of one and a maximum of ten secured credit commitments at the time of application.
At least one applicant must be employed or self-employed earning a minimum basic gross salary/taxable income of £50,000 per annum where an applicant will have five or more buy-to-let properties on completion or five or more secured credit commitments at application. Where an applicant has four or less buy-to-let properties on completion or four or less secured credit commitments at application, the criteria remains the same with at least one applicant in employment (full or self-employed) earning a minimum basic gross salary/taxable income of £25,000 p.a.
In addition, self-employed applicants must produce either the latest Self Assessment Tax Calculation forms (SA302s) covering a minimum of 12 trading months (the most recent year-end must not be more than 18 months old); or final accounts signed by a suitably qualified accountant.
Brad Fordham, managing director for Santander for Intermediaries, said: “These latest improvements to our criteria, opening up our highly competitive buy-to-let product range to self-employed landlords, demonstrates our continued commitment to the growing buy-to-let sector. We want to offer intermediaries and their buy-to-let clients a choice of good value products and will continue to review our buy-to-let criteria to ensure we’re offering their clients the best product for their current and future needs.”
Santander for Intermediaries’ range of purchase and remortgage buy-to-let deals is available exclusively through the intermediary market.
- Borrowers must be aged between 21 and 70, and at least one applicant must be employed/self-employed earning a minimum basic gross salary/taxable income of £25,000 p.a. where an applicant has four or less buy-to-let properties on completion or four or less secured credit commitments at application OR a minimum basic gross salary/taxable income of £50,000 p.a. where an applicant will have five or more Buy to Let properties on completion or five or more secured credit commitments at application.
- For self-employed applicants we require either the latest Self Assessment Tax Calculation forms (SA302s) covering a minimum of 12 trading months (the most recent year-end must not be more than 18 months old); or final accounts signed by a suitably qualified accountant.
- Minimum purchase price of £75,000
- Maximum loan size per property of £750,000
- A minimum deposit of 25% is required and rental cover of 125% or above, calculated on an interest only basis
- The buy-to-let affordability rate is 5%
- Applicants must already have a residential or buy-to-let mortgage
- Houses in multiple occupancy not eligible