Buy-to-let | D-K
Lending criteria – buy to let
Barclays buy-to-let mortgage is a residential investment product. It's designed for the purchase or remortgage of residential properties (including new build) that will be ready to let on or within 1 month of completion.
Download our packaging requirements for more information or follow the links below.
Packaging checklist [PDF, 294KB]
Lending criteria at a glance [PDF, 535KB]
Use our A to Z tool below for details of our buy-to-let lending criteria
We’ll consider ex-local authority properties (including flats and maisonettes in blocks of less than seven storeys) on a case-by-case basis. As long as the Surveyor, who inspects the property, is able to recommend the property as suitable security for mortgage purposes.
Properties with deck area access can be considered for ex-local authority developments where the valuer specifically confirms a high-quality development in a sought-after area and there are no issues whatsoever identified with regards to future mortgageability/saleability.
The application must be declined if the surveyor is unable to recommend the property as suitable security for the mortgage.
Only lending to existing SPV Limited Company borrowers and existing LLP borrowers will be considered. We will require additional security in the form of a Floating Charge (Debenture) if this has not been provided previously, together with full Personal Guarantees in respect of the total aggregate mortgage from each director/shareholder/member; executed after the benefit of independent legal advice.
If a Floating Charge (Debenture) exists already in favour of another bank/lender it will be necessary for the solicitor acting to obtain a Letter of Non-Crystallisation together with the banks/lenders written consent that they happy for us to proceed and that our Floating Charge (Debenture) can rank equal. We also require that our legal charge is registered at Companies House.
First-time buyers are eligible to apply for a Barclays Buy-to-let Mortgage.
Further advances can be considered for the following purposes only
- To assist with the purchase of a further residential property ie, buy-to-let or residential property)
- To buy out the equity interest from associated parties
- For property repairs and/or improvements to any residential property owned
- To assist with financing changes in our security eg, purchase of additional land that will form part of our security, purchase of freehold, extension of lease
- To repay existing residential mortgage
- NOTE: It is NOT acceptable for a further advance to be used for any purpose other than those listed above
Applications will be considered for further advances subject to the following requirements being met in ALL cases
- Maximum LTV is 75% for loans up to £1m and 60% LTV for loans above £1m to £2m. The maximum aggregate Buy To Let borrowing exposure with Barclays is £3m and the maximum aggregate Buy to Let borrowing exposure across all lenders is £4.5m
- Lending for flats restricted to £500k for up to 75% LTV and £1m for up to 70% LTV
- Lending for new builds restricted to £500k for up to 75% LTV and £1m for 60% LTV and below. New builds requiring lending of above £1m are outside policy.
- The main account must be running for a minimum of 6 months before a further advance will be considered
- The maximum term for an interest-only mortgage is 35 years, and 25 for a repayment mortgage.
- For a further advance, where any part of the mortgage is on a repayment basis (for a further advance or existing mortgage), then the maximum term is 25 years.
- Supporting documents must be provided as detailed in the Requirement Table
- All existing Group mortgage accounts (both BTL and residential) must be up to date and be well conducted
- An assessment of rental cover in accordance with basic lending terms must be undertaken, based on the rental assessment provided by Barclays’ preferred surveyor
NOTE: For further advance borrowing, the affordability rate current at the time of assessment must be applied to the total borrowing after accounting for any increase in lending.
- On joint mortgage applications where there is any additional borrowing or equity release in excess of £50,000 and this is to be for the benefit of one party to the mortgage only (eg purchase of a second/BTL property to be registered in the name of one party), Independent Legal Advice must be obtained by all other borrowers not directly benefiting before any funds are released
- When submitting applications for equity release on unencumbered properties, a certified copy of the customer’s proof of identity documentation must be submitted
For further information, details of products available and fees payable please call 0345 073 3330 and select option 4. Lines are open Monday-Friday, 9am-5pm.
We do not accept guarantors. All clients must meet our personal status/covenant requirements. Full supporting Personal Guarantees are required from all directors/shareholders of a SPV Limited Company and from all members of a LLP. Any new lending to existing SPV/LLPs is limited to further advance and transfer of equity only.
A House in Multiple Occupation (HMO) is acceptable provided it is not subject to any form of licensing by the Local Authority. Where there is any doubt as to the licensing requirement of a BTL property, written confirmation from the appropriate Local Authority will be requested. If your client would like more information on HMOs and licensing they can visit www.communities.gov.uk/housing or speak to their Local Authority.
Where an existing client applies for further borrowing on a property which now requires licensing, consideration may be given to the request providing that the monies are to be used for the following circumstances only:
- Fees to obtain a licence if one is now required
- Essential repairs/improvements to ensure the property complies with licence requirements (either to obtain or maintain the standard required for the licence)
- Essential Repairs to maintain the quality of the property. Please note that this does not include cosmetic improvements such as redecoration
A certified copy of the licence from the Local Authority must be submitted with the application where it is currently held or alternatively provided by the client once it has been obtained.
Local councils/authorities are also able to licence Buy to Let properties by way of selective or additional licensing. Such licenses are acceptable provided the property is not also an HMO. Such licensing is intended to protect the property from misuse and generally improve the locality.
The letting types must be to a single household with one tenancy and one tenancy agreement, eg an individual, a couple, family unit, a group of students or professionals – no more than 4 tenants under one agreement.
Independent Legal Advice must be obtained by all directors/shareholders/members of a SPV Ltd Company or Limited Liability Partnership each time they sign a personal guarantee. All associated costs to be covered by your client.
On joint mortgage applications where there is any additional borrowing or equity release in excess of £50,000 and this is to be for the benefit of one party to the mortgage only (eg purchase of a second/BTL property to be registered in the name of one party), Independent Legal Advice must be obtained by all other borrowers not directly benefiting before any funds are released.
In the BTL market, investors often purchase properties with funding on an interest-only basis.
This is acceptable as long as the applicants have a suitable repayment strategy in place to repay the capital at the end of the term.
Where bank statements are required, Internet Bank Statements are acceptable subject to the following criteria being met:
Internet bank statements stamped and certified by issuing bank:
- The statements must show the account number and sort code or where applicable these must be visible on the customer’s proof of income documentation (e.g. pension payslip, benefits statement etc.).
Internet bank statements not stamped and certified by issuing bank:
Internet bank statements for UK accounts that have not been stamped and certified by the issuing bank can be accepted subject to the following criteria:
- The statements must show the account number and sort code or where applicable these must be available on the customer’s proof of income documentation (e.g. pension payslip, benefits statement etc.) with the full name of the applicant(s) i.e. “Mr Andy A Example” (middle names present as initials are acceptable).
- If the customer(s) full names (first and surname) are not on the statement, the underwriter must be satisfied that the account belongs to the mortgage customer, for example by:
- Reviewing correspondence from the accounting holding bank.
- Obtaining a copy of the corresponding cheque book evidencing the name and account number.
- The proof of income documentation (e.g. pension payslip, benefits statement etc.) showing the income mandated to the account showing the customer’s name.
- P60 or Annual Tax Summary where the full name can be aligned to the proof of income documentation via the National Insurance number which in turn can be connected to the bank statements provided.
- Statements can be in no way edited and all debit/credit entries and running balances must be visible.
Mortgage Services still have discretion to request original bank statements and or further information where they are not satisfied with documentation provided.
No discretion can be applied to the contents of this section.
Internet Bank Statements are not acceptable to fulfil ID&V requirements.
Japanese Knotweed is an invasive plant introduced into the UK and has no natural predators. The plant is known to exploit existing weaknesses in buildings. Applications where Japanese Knotweed is identified should be looked at in accordance with the following requirements:
Japanese Knotweed is within 7 metres of the main building, habitable spaces, conservatory and/or garage and any permanent outbuilding, either within the curtilage of the property or on neighbouring land;
Japanese Knotweed is causing serious damage to permanent outbuildings, associated structures, drains, paths, boundary walls and fences.
To be reported in the valuation report together with a valuation of the property. Further investigation is required. This is to be undertaken by a Property Care Association (PCA) registered or similarly qualified firm. All recommended remedial works must be covered by an insurance backed guarantee. The guarantee must be for a minimum of 10 years, be property specific and transferable to subsequent owners and any Mortgagee in Possession.
An insurance backed treatment plan must be confirmed prior to completion. It is not necessary for the recommended remedial works to be completed prior to the release of any mortgage monies.
Japanese Knotweed is present within the curtilage, but is more than 7 metres from the main building, habitable spaces, conservatory and/or garage and any permanent outbuilding.
Report this in the valuation together with a valuation of the property. No further investigation or action is required.
There is damage to outbuildings, associated structures, paths and boundary walls and fences and this is considered minor.
Report this in the valuation together with a valuation of the property. Further investigation is required. This is to be undertaken by a Property Care Association (PCA) registered firm. All recommended remedial works must be covered by an insurance-backed guarantee. The guarantee must be for a minimum of 10 years, be property specific and transferable to subsequent owners and any mortgage in possession.
An insurance-backed treatment plan must be confirmed prior to completion. It is not necessary for the recommended remedial works to be completed prior to the release of any mortgage monies.
Japanese Knotweed is not seen within the boundaries of the property, but it is seen on a neighbouring property or land. It is within 7 metres of the curtilage of the subject property, but more than 7 metres away from the main building, habitable spaces, conservatory and/or garage and any permanent outbuilding.
To be reported in the valuation report together with a valuation of the property. No further investigation or action required.
Japanese Knotweed is not seen at the property, but it can be seen on neighbouring property or land where it is more than 7 metres away from the curtilage of the subject property.
To be reported in the valuation report together with a valuation of the property. No further investigation or action required.
Joint Borrower Sole Proprietor (JBSP) is a proposition that lets you be named as a mortgage applicant, even if you’re not also a legal owner of the property.
We’ll still consider your income if you’re not named as a proprietor upon completion.
- If you’re a proprietor, you need to be a borrower too
- When you apply, your application needs to clearly show the need for this arrangement and the name of the sole property owner
- All borrowers need to sign the mortgage deed
- If you’re not on the title deeds, you need to get independent legal advice – this needs to be a letter from your solicitor, before any completion money is released
- Available in England, Wales, Scotland and Northern Ireland
- We can’t agree a mortgage, under any circumstances, where any party named on the title deeds isn’t also going to be a mortgage borrower
All other elements of standard lending policy apply.