Buy-to-let lending criteria for loan terms | Barclays Intermediaries

Maximum aggregate borrowing across all Barclays BTLs is £3m. Maximum aggregate Buy to Let borrowing with Barclays AND other lenders must not exceed £4.5M in total. The maximum number of mortgaged BTL/PTL properties held must not exceed 6 with Barclays and must not exceed 10 across all lenders (including Barclays). This includes the subject (applied for) property.

Landlords with 4 mortgaged rental properties or more, across all lenders, are classed as portfolio landlords. This includes the subject (applied for) property.

Applications from your client to purchase properties in their own personal name from a Limited Company where they have a financial controlling interest are outside our standard lending criteria.

• Application fees for Buy to Let mortgages can be added, deducted from the advance or paid up front (as long as the product allows). Refer to our latest rate guide for further information.
• For Buy to Let Rate Switches, fees can be added to the loan, however Fees over £2000 must be paid up front.

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.

Repayment strategies for interest-only BTL mortgages

The following repayment strategies are acceptable for interest-only BTL mortgages:

• Sale of mortgaged property
• Existing endowment policy
• Existing stocks and shares (ISA)*
• Existing share, unit or investment trust (professionally managed)*

*The value must be equivalent or the more than the interest only mortgage value and Single line stock can not be accepted.

Currently, the maximum LTV we offer on all BTL mortgages is 75% for loans up to £1m and 60% for loans above £1m to 2m. In addition, there are restrictions by property type as follows:

• Maximum LTV is 75% for flats up to £500k and 70% for flats above £500k and up to £1m
• Maximum LTV is 75% for new builds up to £500k and 60% for new builds above £500k and up to £1m.
• New builds requiring lending of above £1m remain outside policy

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.

Need higher than 75% LTV?

You may wish to visit Kensington Mortgages, one of the UK’s leading specialist lenders and a subsidiary of Barclays Bank UK PLC. Kensington offer more flexible lending criteria to help people who may not meet typical lending requirements. Learn more.

At least one applicant must have a minimum income of £25,000 (excluding rent from background Buy to Lets, i.e. the £25,000 income must be from an acceptable source other than rental income.)

For individual loans above £1m, a minimum gross annual personal / earned income of £75,000 per annum is required (for joint applications, the two primary applicants’ combined income must be £100,000pa, where neither applicant earns £75,000.) The income components considered when deciding if this minimum income requirement is met are: basic salary + sustainable allowances + self-employed income.

If a client has more than one Barclays BTL please note that our standard Mortgage Conditions include an All Monies Clause which secures on the subject property, any other debt that may be due to us, whether under this loan or any other lending facility.

BTL loans can be taken on the basis of:

• Capital repayment (capital & interest)
• Interest-only or
• A mixture of both

Proof of identity and address verification for all private individuals, directors, shareholders and members must be obtained.

Proof of address: A minimum of 3 years uninterrupted history must be provided by all mortgage applicants. We'll confirm 2 years address history via the Voters Roll wherever possible for UK residents; if we are unable to do this we'll have to ask for documentary evidence to cover the last two years.

For full details of our requirements, please call our Intermediary Mortgage Experts on 0345 073 3330 -  Monday to Friday, 9am to 5pm.

The term of a Buy To Let Interest-only mortgage can be from 5 to 35 years and for a Buy To Let Repayment mortgage the term can be from 5 to 25 years.