Santander for intermediaries announces self-employed Buy to Let lending criteria

From 7 April 2014, self-employed landlords can also benefit from Santander for Intermediaries’ (SFI) Buy to Let product range as the intermediary lender opens its criteria to self-employed with the intention of increasing its share of the growing Buy to Let market, whilst continuing to target non-professional Buy to Let 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 But 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 per cent is required and rental cover of 125 per cent or above, calculated on an interest only basis
- The Buy to Let affordability rate is 5 per cent
- Applicants must already have a residential or Buy to Let mortgage
- Houses in multiple occupancy not eligible

And in addition to a great Buy to Let mortgage rate, all Santander 1|2|3 Current Account customers benefit from 1% cashback on their Santander direct debit mortgage payments too.

Intermediaries can visit www.santanderforintermediaries.co.uk for full details.