Buy To Let Mortgages
Please see our Buy to Let rate table attached at the base of this page.
A Buy-to-Let mortgage is an advance, secured by residential property, where the owner does not occupy the property, but it is let to a tenant on agreed terms and is classified under one of three categories:
- Buy-to-Let (BTL) lending where the borrower is acquiring residential investment properties for business purposes and has three or less mortgaged buy-to-let properties;
- Consumer Buy-to-Let Mortgage (CBTL) contract. A buy-to-let mortgage contract which is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower. Reliance Bank do not provide this type of Buy-to-Let Mortgage contract.
- Portfolio Landlord activities (PLA) Where a customer has four or more mortgaged buy-to-let properties across all lenders in aggregate. Portfolio Landlord activities could be arranged via our Commercial Finance Managers.
BTL activities are regulated by the Financial Conduct Authority through their Mortgages and Home Finance: Conduct of Business sourcebook, and the Mortgage Credit Directive Order 2015.
The maximum Reliance Bank will permit is 3 Buy-to-Let Loans per customer.
A BTL mortgage is an unregulated product, and not subject to the requirements of the Mortgage Market Review or Mortgage Conduct of Business (MCOB) rules set by the Financial Conduct Authority.
- Maximum loan 70% of the lower of purchase price or professional valuation;
- Minimum loan amount £50,000;
- Rental Income to meet a minimum 125% of loan repayments, capital plus interest;
- Tenancy Agreement to be an Assured Shorthold Tenancy (AST) for a maximum term of twelve months, copy to be provided to the bank;
- Professional Valuation required, addressed to the bank, by a suitably qualified R.I.C.S. valuer;
- Product Interest Rate 0.5% above Reliance Bank Home Mortgage Variable Rate;
- A Fixed Interest Rate is not available;
- Arrangement Fee 1% minimum fee £1,500;
- Overpayments permitted up to 10% per annum, minimum £1,000, with a fee charged of 2% of capital repaid.
If one of our rates interests you, call us on 020 7398 5400 or alternatively print the documents listed at the base of this page and forward your completed application form with the supporting documentation named in the "What you need to open an account" attachment shown below to the following address:
Reliance Bank Limited, Faith House, 23-24 Lovat Lane, London EC3R 8EB