BUY TO LET MORTGAGES

Catalyst Property Finance / Buy To Let Mortgages

BOOST your buy to let borrowing 

Our specialist buy to let product “Boost to let” provides a unique opportunity for investors and landlords.

With Catalyst, you can expect flexibility on affordability, acceptable property, borrower type/credit profile and complex enquiries.

How we lend differently

Landlords can borrow more

We offer a 100% Interest Cover Ratio (ICR) plus we allow unlimited top slicing for High-Net-Worth borrowers with £1m+ assets.

On all types of property

Funding is available for unusual and complex property including mixed use to 75% LTV, high value single assets, holiday lets, student lets, low yield assets, ex-local authority, MUFBs with no exposure limits, and HMOs that are unlimited on bedrooms. Take a look at the property list below.

Can’t see your property type? We may still be able to help, call our New Business Team to check.

Catering for all types of borrowers

Catalyst welcomes a wide range of borrower types including professional, portfolio and first-time landlords. They lend to individuals, limited companies, LLPs, offshore limited companies, SPVs and Trusts. Ex Pats, foreign nationals from EEA/non-EEA are accepted. The is no minimum income requirement and borrowers can be retired. Clients with adverse credit are also catered for.

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BOOST to let 2 year fixed rates and term

Flexible buy to let finance with 100% ICR  2 year fixed rate and term 

50% LTV  60% LTV  70% LTV  75% LTV
Rate  5.74%  5.99%  6.49%  6.99%
Pay rate, with maximum 2% rate deferral per annum  3.74%  3.99%  4.49%  4.99%

 

Let’s boost the borrowing 

  • ICR 100% payrate  (lower of market rent or passing rent)
  • Unlimited top slicing for High Net Worth individuals  with £1m+ assets 
  • Borrow up to 75% LTV / 80% LTC 
  • Borrow up to 75% LTV with cash out 
  • Loans from £50,000 to £10,000,000 
  • Portfolio finance up to £10,000,000 
  • No ERC overhang, 3% applies for the first 21  months, the final 3 months are ERC free 
  • Single capital overpayment up to 10% per annum  allowed without incurring ERCs 
  • Interest only 
  • Retained interest available: Up to 3 months if untenanted. Longer period for the commercial element of  mixed use, by referral Up to 6 months if light refurbishment is required
  • Gifted deposits, subject to Deed of Gift Indemnity Policy and letter relinquishing all rights
  • Builder incentives up to 5%, written confirmation  required 
  • Discounted purchase price. Lending based on  discounted purchase price. 

 

Unusual and complex property? Talk to us…

  • Individual assets, including higher value properties
  • Portfolios 
  • Low yield properties 
  • Decorating/light refurbishment permitted, non  structural 
  • Residential, houses and flats 
  • Flats/apartments in blocks up to 20 floors
  • Mixed-use property to 70% LTV 
  • MUFBs – no exposure limit 
  • MUFBs up to 10 units valued on an aggregate  basis, over 10 units valued on an investment basis. 
  • HMOs – unlimited on bedrooms
  • Holiday lets/Airbnb/Short term lets
  • Student lets 
  • New builds with certificates in place
  • Ex-local authority 
  • Non-standard construction by referral
  • Adjoining properties 
  • Flying freeholds up to 20% 
  • Indemnity insurance generally accepted
  • Freehold/leasehold 
  • Property in England and Wales. 

Solutions for a wide range of landlords 

  • Professional landlords and portfolio landlords • First time landlords/buyers 
  • Top slicers (High Net Worth) 
  • Employed/self-employed/retired 
  • No minimum income 
  • Individuals, LTD companies/LLPs, Offshore LTD Companies, SPVs, Trusts
  • Ex Pats/Foreign nationals 
  • UK/EEA/non-EEA accepted 
  • Up to 4 applicants allowed 
  • Ages 21 to 85, older by referral 
  • Adverse credit permitted. Many blips allowed with no LTV reduction, see ‘Borrower criteria’ on back  page criteria guide.

Buy to let lending criteria

Looking for more detailed lending criteria?

 

Loan terms

  • Minimum ICR: 100% at payrate (lower of market rent or passing rent)
  • ERCs: 3% per year for the first 21 months of the loans
  • Top slicing: Permitted for High Net Worth (HNW) individuals. HNW qualification for borrowers/guarantors is net investment property assets in excess of £1m and able to demonstrate at least 200% of the required amount as net annual income (e.g. if the annual deficit between rent and payment is £15,000, the borrower will be required to evidence £30,000 of net annual income (after tax and after regular payment) and to be evidenced by 6 months bank statements
  • Maximum single property value: £3,000,000
  • Works: Decorating/light refurbishment permitted, non structural
  • Interest Retentions: Maximum 3 months permitted but not required. Longer permitted for commercial aspect of mixed-use properties if valuer comments longer letting time required.

Property requirements

  • Mixed use property: The commercial aspect of the property must be no more than 49% of the property value and floor area (excluding ancillary areas – basement/storage)
  • HMO: <7 rooms – if valued on an investment basis, the valuer must have consideration of local HMO market and non-HMO comparables. >7 rooms – can be valued on a vacant possession investment basis – at the valuer’s discretion. 16+ rooms – no deferred interest allowed
  • License – the valuer must confirm that the property is a viable HMO, in the current configurations. Where applicable, an application for any HMO license required by the LA must have been made prior to completion. For refinance loans a license should be in place.
  • MUFB: Only aggregate valuation where <10 units and individual units are mortgageable. All units to be valued net of new build premium and on 2nd hand value basis MUFBs 10+ units should be valued on an investment basis. Over 10 units, maximum of 10% per annum of the loan can be repaid without triggering ERCs
  • Borrower Limits: Maximum exposure per borrower/sponsor £10,000,000
  • Holiday lets: With C3 planning and no occupancy/planning restrictions. Lower of vacant possession valuation or AST investment value. Rental cover for the ICR calculation should be based on AST income
  • Planning irregularities: Not permitted, established use by way of long user and appropriate indemnity is allowed with Credit approval
  • First time buyer: Maximum loan size £500,000 – no mixed use or HMO with >6 rooms
  • First time landlord: Maximum loan size £750,000 – no mixed use or HMO with >6 rooms
  • Borrower Credit: ‘T1’ accepted with no LTV reduction: Up to £5,000 settled CCJs in past 24 months/rolling arrears/Up to 2 missed mortgage payments in last 24 months, none in last 6. No historic bankruptcies. ‘T2’ accepted with a 5% LTV reduction: Up to £10,000 settled CCJs in past 24 months/rolling arrears. Up to 4 missed mortgage payments in last 12 months, none in last 6. More than 3 years since any Bankruptcy.

Valuation

  • All valuations must be undertaken by an approved valuer from the lender’s valuation panel.
  • Short-form valuations: may be permitted for individual residential houses or flats worth less than £500,000. Multi-unit properties and >6 bed HMOs are not permitted.

Title insurance

Title insurance is acceptable in following circumstances:

  • Refinance loans where the existing lender being refinanced is a high street bank, challenger bank or established BTL lender
  • Residential assets only
  • No works requiring planning permission or building control have been undertaken in the previous 3 years
  • Property value <£1,000,000
  • Loans <£750,000
  • Borrower is a UK Company
  • No planning, environmental or title defect reported by the valuation report.

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