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Buy-to-let | O-Q

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

A guide to Buy to Let affordability and online affordability calculator

Buy to Let affordability and the online Affordability Calculator FAQs

Our lending criteria at a glance

Use our A to Z tool below for details of our buy-to-let lending criteria

  • PO Box addresses PO Box addresses

    Some applicants who are resident outside of the UK may have a PO Box Address, rather than an actual property address. We can't accept an application from a client with a PO Box Address unless:

    • The PO Box address is for correspondence purposes only and in addition
    • The actual residential property address of the client must be established and verified in line with our BTL Identification and Address Verification requirements. Contact our Intermediary Support team on 0345 073 3330.
  • Personal covenant assessment Personal covenant assessment

    There are a number of factors to consider when assessing the personal covenant of an applicant. All of the following criteria must be met at least by the principal applicant

    • Minimum age of the principal applicant is to be 21 or over
    • A personal affordability check for all applicants
    • Sole applicants must earn a minimum gross income of £25,000 (for joint applications at least one applicant must earn £25,000)
    • Minimum gross annual personal/earned income for individual loans above £1m is £75,000 (for joint applications, the two primary applicants must earn at least £100,000 between them if neither applicant earns £75,000)
    • Must be in permanent paid employment, employed and paid by current employer for the last 6 months, or in continuous employment for the last 18 months
    • Contract workers must have an established 3 year track record of employment in the same line of work
    • Self employed applicants must have been trading in their current business for a minimum of 2 years
    • Retired applicants must be in receipt of income(s) from an acceptable source (as defined in the Allowable Gross Income section)
    • Note: Each application will be assessed on its own merits; our underwriters need to be comfortable with the application and the proposed BTL security
  • Porting Porting

    All BTL loan products are fully portable, subject to the new mortgage meeting our policy.

    Note: It's acceptable for a product to be ported to a different borrower type (e.g. from an individual borrower to a SPV Limited Company), providing the applicant/directors/shareholders are the same. Where one party is being removed, they must waive their rights of portability.

  • Property concentration Property concentration

    In order for Barclays to proactively manage the risk of over exposure in one location (i.e. on a particular development/estate, in an individual block, in the same road/street) an assessment of the property concentration we currently hold, will be carried out by our BTL Mortgage Processing Centre on receipt of the application based upon postcode concentration.

    The maximum Woolwich property concentration is 6 properties in any one postcode (eg AB1 2CD). Although all application where there are more than 4 properties in any one postcode will be referred for review.

    Where a client is purchasing/remortgaging a freehold property, which has been split into no more than 6 individual self-contained flats (of which 2 can be studios) the property as a whole (rather than the individual flats) will be taken into account when assessing property concentration.

  • Property conversions Property conversions

    We'll consider good-quality Freehold properties that are arranged as no more than 6 individual, self-contained units/flats. However, there are some provisions:

    • Where the borrower is also the sole freeholder and has divided the property into self-contained flats for letting, security will be charged on the freehold together with the leasehold on the units being let
    • All conversion works must have been carried out in accordance with Planning Consents & Building Regulations
    • A maximum of 2 studio flats are allowed in the Freehold
    • All the units/flats must be fully self contained with an average open market value in excess of £46,666 (75% LTV) for each one where further product restrictions apply such as max LTV/Min Loan amount the minimum required property value may increase.
    • Each unit must be let on an acceptable letting method
    • All lending on newly converted properties, where the first registration of the new Leasehold/Freehold Title(s) was less than 2 years ago, must be restricted to 75% LTV – See New Build Section
  • Property management Property management

    We recommend that a reputable qualified letting agent should be engaged to let and manage a BTL property. However, where a client can demonstrate relevant experience we'll allow them to undertake their own letting and management.

  • Property types Property types

    There are some property types which are not deemed suitable security for the Barclays Group and so in all cases lending will be declined on Buy to Let properties. These scenarios are listed below:

    • Demolish and rebuilds
    • Freehold flats and maisonettes
    • Ex-local authority high-rise flats over 7 storeys
    • Properties classed as ‘houses in multiple occupation’ where a licence from the Local Authority is required
    • Live-work units
    • Self-builds
    • Easiform cavity walled concrete
    • Those where the client uses or proposes to use any part or whole of the security offered for owner occupation
    • Those with multiple tenancy or licence agreements in place.
    • Those that contain bed-sits.
    • Flats that are not self-contained or without independent access
    • Any property not recommended as suitable security by our surveyor or which falls outside our Lending Policy.
    • Adjoining flats (granny annexe)
    • Where there are any Agricultural Restrictions
    • Flats over shops/commercial premises – when the premises are hot and cold food outlets, licensed premises, launderettes/dry cleaners, taxi cab offices, amusement arcades, petrol stations, pet shops, food processing centres
    • Mixed-use properties
    • Section 106 properties

    Some properties may have certain features which mean that extra care will have to be taken. In these cases please contact the Intermediary Support Team for further details on our lending policy:

    • Japanese Knotweed – please see separate policy section
    • Properties with deck area access can only be considered for good quality developments with no restriction whatsoever on mortgageability/saleability. 
    • Contaminated land – Typically from previous industrial use of the site
    • High-rise blocks of flats – properties with deck area access or properties that have non-decorative timber cladding will be looked at individually
    • Modern methods of construction – Will require an individual assessment by a valuer
    • Early steel frame construction - Will require an individual assessment by a valuer
    • Studio flats – individual studio flats are not acceptable for Buy-to-Let applications. It is acceptable to consider freehold properties where the whole property has been converted into not more than 6 self-contained units, of which a maximum 2 can be studio flats. Please see Property conversions policy for more detail

    The above lists are not exhaustive; please contact the Intermediary Support Team for further details