Do you want to borrow more?

Before you look at borrowing elsewhere, why not talk to us first to see if we can help.

We’ll assess your current circumstances to make sure borrowing from us is right for you. You’ll need to confirm:

• Your personal income
• Your current rental income if you’re a landlord
• How much you think your property is worth
• Your financial outgoings. Please tell us how much you pay for:
  • Childcare
  • Maintenance
  • School fees, and
  • Any credit commitments you have such as loans, credit cards and overdrafts. We’ll need to know how much you owe on these too.

You’ll find it’s worth having these details to hand before you speak to us. This will help make the process quick and easy.

Book a call for a time that suits you or when you’re ready, give us a call.
 

* To call using text Relay, dial 18001 0345 300 8000 using a textphone or the Relay UK app. All calls are recorded for training and monitoring purposes. Lines are open 9am – 5pm Monday to Friday. We’re closed on Bank Holidays. 03 calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.

Got an idea of the amount you want to borrow? Use our calculator to see how much your monthly payment could be.

What do I need to know?

It’s important that any Buy to Let loan is affordable for you. You should think whether borrowing more could put you under any financial pressure. For example, can you pay the mortgage if your tenant doesn’t pay their rent, or when you have no tenant? What if you have to pay for repairs to the property?

How do you work out my affordability?

Rental properties are normally thought of as self-funding. This is where the rent you’re paid is enough to cover your monthly mortgage payment.

We’ll make sure the rent is enough to cover your existing loan and the extra you want to borrow. Part of our assessment will be based on the amount your tenants pay. The rent must be paid in British Pounds.

The loan you ask for could be cut back if the rent isn’t enough. However, we may be able to take your personal income into account if you meet certain criteria.

What happens if the rental or financial markets change?

You’ll still have to pay the full mortgage payment and any additional costs from letting your property if:

• The rent you charge falls below your monthly mortgage payment
• You have no tenants living in your property.

There are many factors that could affect your payments or the rent you can charge during the length of your mortgage i.e.

• If a new block of flats is built near your property, it could mean there are more properties to rent than there are tenants. This may cause the amount you’re able to charge to fall
• The interest rates will go up or down which means your mortgage payments might too.

• How much extra can I borrow?
  You can borrow between £5,000 and £500,000 extra. This depends on the rent you charge and how much your rental property is worth. Everyone named on the mortgage and the property must still meet our lending policy.
  
• How long can I borrow the money for?
  You can borrow the money from two years up to 35 years. The time you have the loan for doesn’t have to be the same as your main mortgage. Everyone named on the mortgage and your property must still meet our lending policy.
  
• Will I need to have my property revalued?

  You won’t normally have to pay for a revaluation if:

  • We valued your property within the last ten years
  • The amount you want to borrow is £20,000 or less, and
  • Your property is 75% Loan to Value (LTV) or less. We’ll use a House Price Index (HPI) to work this out. The HPI is a free service and uses recent property sales where you live to calculate how much your property is worth.

  You’ll need to pay for a revaluation if your request to borrow more doesn’t meet the above policy or you feel your property is worth more than the HPI estimate. Have a look at our Tariff of mortgage charges to see how much you’ll have to pay for a revaluation.
  

• Will I be credit scored when I apply to borrow more?
  Yes, we’ll need to credit score everyone named on the mortgage. This will be recorded on your credit record(s).
  
• Are there any restrictions on what I can borrow the money for?

  You can borrow more for several reasons including buying a rental property or paying for a new kitchen, bathroom, or university fees. We do have some restrictions depending on the type of mortgage you have:

  • You can’t borrow extra on any mortgage for business reasons or speculative purposes, such as buying stocks and shares
  • You can borrow up to 75% Loan to Value (LTV) if you’re borrowing more against a Buy to Let mortgage.
  • You can borrow up to 90% LTV if the mortgage is on your main home. This is reduced to 75% LTV if you want to pay off personal debt, such as credit cards or loans.
    
    You should be aware that when borrowing to pay off personal debts:
    • By adding the value of your debts to your mortgage, you’ll pay more interest overall. This is because your mortgage loan will be higher, and you may be paying off the amount over a longer length of time
    • This could increase the chance of your property being taken from you, as your monthly payment will be more
    • You could speak with your other lenders and make an arrangement to pay back the amount you owe. They may agree to change how you repay them, meaning you wouldn’t need to borrow more money against your property. You should ask them if this will affect your credit score. If it does, you may find it difficult to get credit in the future, such as another mortgage, loans and credit cards.