Santander recently accepted cases where British National clients were working abroad, paid in sterling but were not paying UK tax wanting to purchase a main residence in the UK to live in permanently with no letting clauses. Another lender that can also look at these types of clients is NatWest.
NatWest have recently improved their lending to expat criteria and have made the process more streamlined. They will accept clients working for multi-national companies who wish to purchase a residence in the UK for their ultimate return. This must be the clients only property in the UK and NatWest will allow the client to let the property on a short term basis until they return to live in the UK.
Woolwich will accept rental income for affordability purposes on a new residential providing the applicant can supply the relevant proof of this income in the form of SA302 documentation and tax overview letters/accounts. Other lenders that can accept some rental or investment income are NatWest, Accord Mortgages (case by case basis), Aldermore, Cambridge BS, Halifax, Kensington, Leeds BS, Nationwide, Platform and Santander.
If a client rents out a room to a lodger Bath Building Society can consider this income to boost a client’s affordability and borrowing capacity. Please ring to discuss each case.
Leeds Building Society allow holiday lets up to 70% maximum LTV with a minimum valuation of £50K. Other lenders who also consider holiday lets are Principality, Furness BS (Lake District, Cumbria & Yorkshire Dales National Parks only), Melton Mowbray and Shawbrook Bank.
Clydesdale Bank will allow a client to be a first time buyer when purchasing a buy to let property. Other lenders that will consider this are NatWest and Melton Mowbray.
Some Lenders will consider a first time buyer as a 2nd applicant buying with an experienced landlord who meets the lenders criteria and these are Aldermore, Fleet, Kensington, Leeds, Platform, Precise Mortgages, Principality, TMW, Virgin Money, Woolwich and Santander.
Woolwich will allow a client to be in employer tied accommodation and purchase a BTL property. This is an exception to their normal rule where they would require the main applicant to be a homeowner. Other lenders that allow this are Furness BS.
MCD Hint and Tip
You need to decide whether your firm is going to advise on 2nd charge loans post 21st March 2016. The FCA will be approaching firms in January 2016 to ask if you are going to offer 2nd charge advice. If you are unsure what this means to you then please visit our website and read the MCD bulletins.
You may also like to attend our specialist workshop for 2nd charge lending being held in London on 12th November for more details and to register for the event click here. We have other events with an MCD focus too, take a look here for details.
Mortgages Technical Director
Paradigm Mortgage Services LLP
Please remember to discuss each individual case that you have with the Lender in question even if it does fit with some of these hints and tips as Lender criteria is subject to change sometimes at very short notice.