Buy to Let Lending Criteria Marsden Building Society by liaoqinmei

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									Buy to Let Lending Criteria

Lending Area

England and Wales

Maximum loan to value (LTV)

The maximum LTV is dependent on the product chosen.
Remortgage available upto 80% LTV
House Purchase available upto 75% LTV
Maximum LTV for flats is 60%
Individual property limits apply. We have the right to restrict the LTV in certain locations or
developments.

Minimum purchase price or value of property

Properties must have a minimum purchase price or valuation of £100k.

Maximum Loan

Above £350k to be referred.

Maximum aggregate loan

The aggregate loan limit on all rental properties to Marsden Building Society is £500k to single or
joint borrowers. The minimum individual loan is £30k.

Maximum number of properties

The maximum number of rental properties per household with Marsden Building Society is 5 all to be
secured on individual mortgage accounts.

Maximum term

The maximum term available is upto 35 years.

Rental income

The minimum rental income required is 125% of the Society’s Buy to Let Reference Rate, currently
5%.    Applications where the DWP (Department for Work and Pensions, formerly known as the
DSS) will be making the rental contributions are not acceptable.

Employment status of applicant(s)

The applicant, or at least one applicant on joint situations, must be in either employed or self-
employed. Retired applicants will be accepted, subject to age and minimum income requirements.
 Minimum income

 An application must have a minimum income of £25k. 100% of pensions may be used within the
 calculation.
 Minimum and maximum age of applicant(s)

 Minimum age of the customer is 25 years and the maximum age at the end of the mortgage term is
 75 years.

 Credit History

 Applications will not be accepted from discharged bankrupts or if an Involuntary Arrangement has
 been entered into. Where an applicant(s) has previously had CCJs/Defaults totaling <£500 within
 the last five years which have been satisfied over one year will be acceptable.

 Property Type

 Properties built <3 years will not be considered. Properties designed or converted for multiple
 occupation will not be considered e.g. bedsits. Flats with more than 4 storeys, 20 units or
 incorporating any commercial activity will not be considered. Ex council properties are not
 considered acceptable.


 Leasehold properties must have at least 70 years on the lease at the start of the mortgage and 50
 years remaining on the lease at the end of the mortgage term.

 General Eligibility

 Buy to lets are only available to applicants who own and reside in the UK and hold a residential
 mortgage.

 Buy to let loans are not available to Companies.

 Buy to lets are let on a single 6 month assured shorthold tenancy.

 Buy to let properties cannot be rented to students, companies or where the rent is being paid by the
 DWP. Multiple tenancies are not acceptable.

 For remortgage applications the property must have been in ownership for a minimum period of 12
 months. For purchase applications, the vendor must have owned the property for a minimum period
 of 6 months.

 For purchase applications, the applicant must have evidence of savings equivalent of 3 months
 mortgage payments.

 Sale and rent back transactions are not acceptable. Sale and rent back is defined as a situation
 where the property is being purchased on a Buy to Let basis where the property is to be immediately
 let to the previous owner.




Intermediary Sales Centre: 6-20 Russell Street, Nelson, BB9 7NJ.
t. 0845 8949212 f. 01282 440528. E intermediaries@themarsden.co.ulk
calls will be recorded for training and monitoring purposes.
Available to download: KFI and AIP requests @ www.themarsden.co.uk

								
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