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UK Buy-To-Let Criteria

Are you a British Expat or Non-UK citizen looking to purchase a Buy-To-Let property in the UK? This information has been created to outline Skipton’s criteria requirements for applicants, income and property.

Skipton International can help...

Skipton International is an award-winning bank and subsidiary of Skipton Building Society. We are one of the Channel Islands’ leading lenders and serve mortgage customers resident in more than 100 countries globally.

  • Fast processing times
  • Understanding needs of British Expats and Non-UK citizens
  • Personal service from our experienced mortgage team
  • Leading Channel Islands Bank

New Purchase, Remortgage and Further Advance Mortgages

Applicant

In order to meet Skipton International’s applicant criteria, please ensure you can answer yes to the below questions.

  • Criteria
    • Are you and the joint applicant (if applicable) resident outside of the UK and will continue to be so at the time of the mortgage completion?
    • Applicants are required to be in employment for 2 years. Can you provide one month salary slip and a letter from your employer confirming main terms of employment or pension contract? All must be translated to English.
    • Can you provide one month bank statement for the account into which your salary/pension is paid and your UK bank account?
    • Do you have a UK bank or building society account from which direct debits can be arranged to pay your mortgage? This must be opened prior to application. If you are not using a “Major UK Bank” or an easily recognisable bank or building society, you will need to provide us with email confirmation from the bank in question, that they can allow direct debits to be claimed from the account.
    • If you currently own other properties which are mortgaged, can you provide 12 months of mortgage statements for each property, which show no missed payments or payment holidays during this period?
    • Can you provide three years of consecutive address history and your last UK address?
    • Have you never been declared bankrupt, insolvent, or equivalent or no such action is pending?
    • Can you confirm that you have never entered into any arrangement with creditors or are party to a voluntary arrangement?
    • Can you confirm that you have not had a court order (or equivalent) made against you for debt or that no such action is pending? If court order is satisfied, please contact us as we maybe able to assist.
    • Can you confirm that you have not (voluntary or otherwise) had a property repossessed by a lender or entered into an arrangement for mortgage arrears?
    • Are you currently living, working or a national in a country which does not appear on our restricted list? (as detailed in the restricted countries section of this document).
    • Can you confirm you are not a Chinese national residing in mainland China? This does not apply to residents of Hong Kong, Chinese nationals living outside mainland China, or expatriates working in mainland China.
    • Can you confirm you have a UK postal address and email address for service to be provided on the charge certificate for all UK lending.

Income Requirements

In order to meet Skipton International’s applicant criteria, please ensure you can answer yes to the below questions.

  • Employed

    If in employment are you and your joint applicant employed by a clearly identifiable well established employer?

    Sole application

    Is your basic earned (not including commission, overtime or bonuses or pension income) a minimum of £50,000 or the equivalent, if paid in local currency? Any probationary period must be passed prior to applying. Any earned income cannot be subject to UK income tax.

    Joint application

    For a joint application is combined basic earnings a minimum of £80,000 p.a sterling equivalent? Certain guaranteed allowances may contribute towards this figure. Any probationary period must be passed prior to applying. Any earned income cannot be subject to UK income tax.

    Additional employed criteria
    Certain guaranteed allowances may contribute towards this figure. Any probationary period must be passed prior to applying. Earned income with the exception of pension income cannot be subject to UK income tax.

    You will have to provide the following documents in English. We can also accept certified translated documents from an easily identifiable, fully qualified translator.
    • Letter from employer confirming income, position and term of employment / or pension contract
    • 3 month salary slip

  • Self-Employed

    Sole applications
    If an applicant is self-employed, can you provide evidence that annual income is in excess of £75,000 p.a. or equivalent if paid in local currency? Any earned income cannot be subject to UK income tax.

    Joint applications
    If an applicant is self-employed, can you provide the joint application minimum income is £100,000 p.a or equivalent if paid in local currency? Any earned income cannot be subject to UK income tax.

    Additional self-employed criteria
    If self-employed you must be trading for a minimum of 2 years, please supply a fully completed accountant certificate (which can be found here). Self-employed applicants can appoint a local fully qualified accountant working in an accountancy firm with a minimum of two partners. The firm and accountant must be:
    - Clearly identifiable
    - Suitably qualified (local equivalent of ACA, FCA, ACCA, FCCA, IPFA or ICAS)

    Alternatively, self-employed applicants can provide the last year’s final income tax assessment (where written in English). If you supply Tax assessments to confirm your income, you will also need to complete the Business Questionnaire.

  • Pension

    If in receipt of pension income, a sole applicant must have a minimum income of £50,000 p.a or the equivalent if paid in local currency. This can be made up from different pensions, but not a combination of earned and pension incomes. Can you provide evidence of  this?

    For a joint application minimum £80,000 p.a or equivalent if paid in local currency. Each applicant can only have one stream of income (pension/earned income).

    Pension income can be subject to U.K. income tax if the clients have retired abroad and can be from more than one pension provider.

Property

Is the property initially for Buy-To-Let purposes and not for you or a family member to live in during the original three or five year tracker or five year fixed rate product period?

Will the property be let on a suitable Assured Shorthold Tenancy agreement (or a Private Residential Tenancy agreement if in Scotland) and not used as a holiday let or house in multiple occupancy? Please refer to our property letting requirements document for further information.

Has the property been owned by the existing owner for a minimum of six months? This applies to purchase/ remortgages and further borrowing. This does not apply to inherited property.

  • Unacceptable Property

    This list is not exhaustive. Please contact us directly on 0044 (0) 1481 734000 with any queries.

    Properties which will not be completed (ready for tenant occupation) within 6 months of application

    Properties less than ten years old without a building warranty certificate. A list of acceptable providers is available on request. Architects’ certificates are only acceptable on developments with less than 15 units

    Licensed Houses of Multiple Occupancy

    Properties with five or more bedrooms will be assessed on a case by case basis

    Scottish properties which have any form of cladding to the exterior

    Cladded properties not meeting current fire regulations. Please contact us for further clarification and details of the evidence required to confirm compliance

    Grade I or II* Listed Buildings in England and Wales or Grade A Listed Buildings in Scotland. Other categories of Listed Building are acceptable subject to valuer comment and there being no onerous restrictions in the title deeds

    Any properties affected by invasive plant species e.g. Knotweed

    Flats over five floors with no access to a lift

    Leasehold properties with less than 85 years to run at the point of application

    Ex-local Authority flats exceeding five floors or exceeding 48 units in the block

    Deck access flats/gallerised (mezzanine) flats/holiday lets/Air BNB

    Studio Flats worth less than £350k and less than 35 Square meters (GIA) 4

    Any properties less than 35 Square meters

    Office block conversions

    Bespoke properties or properties in a rural location will be assessed on a case by case basis

    Thatched properties.

    Non standard construction or conversions will be assessed on a case by case basis

    Properties that comprise more than one independent unit of accommodation (annexes, wings and duplex properties)

    LPS (large panel systems) and PRC (pre-cast reinforced concrete) properties. However, some modern building construction types will be acceptable

    Properties directly above a commercial premise need to be agreed prior to an application being submitted

    Flats with a leasehold and where the client owns the full freehold

    Freehold and flying freehold (or part thereof) flats in England or Wales

    If you own a house that is leasehold we will need to understand the terms of the leasehold interest prior to an application being received. Please call us to discuss

    Properties being purchased at auction

    If your property is not on the unacceptable properties list and you can answer “yes” to all of the other criteria, and you would like a mortgage on a property, with a maximum loan to value of 75%, the next step is to complete the mortgage application form and collate the supporting documentation.

Energy Performance Certificate

Skipton International will require all landlords of UK rental properties to have a minimum Energy Performance Rating of A to C or a “D” rating only if it can be upgraded to an A to C rating.

Skipton International will require applicants to supply a copy of a current Energy Performance Certificate demonstrating its rating or potential rating.

Skipton International reserves the right to request provision of Energy Performance Certificates at any point during the life of your mortgage.

Portfolio Landlords

Once an applicant owns, or will own as a result of their proposed purchase(s), four or more mortgaged Buy-To-Let properties, they are classified as a “Portfolio Landlord” by Skipton International. One residential mortgage can be ignored. Any further residential properties/holiday homes will be viewed as Buy-To-Let properties. 

If you are a Portfolio Landlord as defined above, Skipton requires any properties within the portfolio to meet Skipton International’s Buy-to-Let affordability criteria. This means that rental income must provide a minimum of 125% interest cover, when interest is calculated on total borrowings at a rate of 7.99%. This calculation is applied to all Buy-To-Let properties mortgaged outside Skipton International on a collective basis. In the event of a rental shortfall, the application will be declined.

  • In addition
    • Skipton International can offer a maximum of 5 Buy-To-Let mortgages to any one client.
    • Skipton International is unable to accept applications from clients who have or will have at the end of this transaction more than 10 Buy-To-Let properties.
    • Skipton International will allow a maximum of 3 Buy-To-Let properties, within the whole portfolio, to be held within any 1 post code district, e.g. SW1.  In the event of more being held, the application will be declined.

Loan to Value parameter

Our criteria on maximum loans for Buy-To-Let properties are as follows (subject to product conditions):

Loan Amount Maximum LTV
Up to £1,250,000 75%
£1,250,001 to £1,500,000 65%
£1,500,001 to £3,000,000 60%
£3,000,001 to £4,000,000 55%
£4,000,001 to £5,000,000 50%

Restricted Countries

Skipton will not accept applications from clients resident of the following countries. However, citizens of some of these countries may be eligible for Skipton International’s UK Buy-To-Let mortgages.


Please note Skipton lends to Australians living outside of Australia. We do not lend to Chinese nationals residing in mainland China. Skipton reserves the right to adjust the restricted country list as necessary.