A
Adverse credit
 

Secured Credit - County Court Judgements (or Decrees) and Defaults – A maximum total value of £5,000 satisfied, over no more than 3 instances within 36 months prior to application and no instances have occurred within 12 months prior to application.

Unsecured Credit – maximum 2 in 12 months, maximum status 1, no more than 4 missed payments in 36 months, maximum status 1.

No insolvencies/liquidations in last 3 years.

Please speak to your BDM for more information.

Age
 
The minimum applicant age is 21.  
The maximum applicant age at the end of term is 85.
Applicants – number
 

A maximum of four applicants is acceptable.

Applicants – residency
 
Applicant acceptability depends is reviewed on a case-by-case basis.

Please speak to your BDM for more information.
B
Bridge to Let
 
  • Works to be undertaken do not require planning permission, Permitted Development is acceptable.
  •  Property must be defined as habitable by the valuer.

Valuation

Schedule of works to be sent to valuer who must provide:

  • A valuation and rental details based on current condition
  • A valuation on completion of works
  • Confirmation that no structural works are required and that the definition of light refurbishment is met
  • An estimated rental valuation on completion of works – an AST agreement is not required to be in place at the time of valuation.
 
Buy to Let vacancy
 

For purchases or development exits, there must be a tenant in place within three months of completion of the loan.

C
Commercial property
 
Commercial property is not acceptable for Buy to Let applications.
Construction types
 

Acceptable

  • Castle Trust Bank will not normally lend on a security of non-standard construction. ‘Standard construction’ means:
    • Masonry walls of solid or cavity construction having a minimum thickness of 200mm.
    • Modern timber (post 1975) or steel framed (post 1998) property with a masonry outer cladding originally built with the benefit of a suitable new home warranty.
    • Standard slate or tiled roof construction
    • Standard flat roof (e.g. metal, mastic asphalt, felt, single ply elastomeric)
    • Thatch (considered on an individual basis)
    • Modern methods of construction
  • Previously unacceptable construction which is now acceptable:
    • Wimpey No Fines
    • Laing Easi Form post 1945
    • Crosswall post 1970

Unacceptable

  • All non-traditional construction types:
    • Steel framed, with non masonry cladding
    • Solid masonry having a thickness less than 200mm
    • Felt flat roof in excess of 50% plan roof area
  • Laing Easi Form pre 1945
  • Concrete (No Fines, Cheshire Brine, Mundic, Precast Reinforced Concrete (PRC))
  • Log
  • Single Skin
  • Flat Felt
  • House boat
  • Mobile home
  • Timber Frame (period properties considered on an individual basis)
  • Cross wall construction pre 1970
Consumer Buy to Let
 
We not offer Consumer Buy to Let loans.
Corporate borrowers
 
Buy to Let
  • Any shareholders holding less than 25% share of the company do not have to appear on the application.
  • Ownership can be as either an individual or corporate borrower.
  • Corporate borrowers must provide personal guarantees from all Directors on a joint and several basis.
  • Power of Attorney applications are not acceptable.
Credit profile
 
Secured Credit - County Court Judgements (or Decrees) and Defaults – A maximum total value of £5,000 satisfied, over no more than 3 instances within 36 months prior to application and no instances have occurred within 12 months prior to application.

Unsecured Credit – maximum 2 in 12 months, maximum status 1, no more than 4 missed payments in 36 months, maximum status 1. No insolvencies/liquidations in last 3 years.

Please speak to your BDM for more information.
D
Duration / nature of tenancy
 
  • Buy to Let properties must have a maximum tenancy duration of 12 months with six monthly break clauses.
  • Limited Company lets, acceptable where the tenant is a named individual.
  • Longer terms by negotiation.

For Holiday Lets:

  • Short term, which includes Airbnb.
  • Longer terms by negotiation.
DWP eligible
 
  • Yes, provided the DWP recipient is listed as the tenant on the Assured Shorthold Tenancy agreement.
E
Employment status
 
We don't require proof of income on UK National applicants providing there is no shortfall on the stress-testing of the rental.

Employed

We will accept most employed applicants in principle. If they are still within a probationary period this is acceptable provided Castle Trust Bank is satisfied that the applicant can meet their current obligations.

Contract based employment

A contract must be in place at time of application. If there is less than six months left to run on the contract, then Castle Trust Bank must be satisfied of the future longevity of the employment.

Self-employed

Acceptable if they can demonstrate that their business has been trading profitably for a minimum of 12 months. This 12-month period is not required if the applicant has converted to a self-employed basis (with at least 12 months continuous employment) performing the same role in the same company, or working in a sector that has a significant volume of contract workers.

Retired

We will accept retired applicants who have demonstrable income (such as private pension) and a credible repayment strategy.

Students and unemployed

We will accept applicants with employment status of unemployed and students as part of a joint application where the other applicant meets the self-employed or employed status criteria.
EU nationals
 
EU nationals are acceptable.
Ex-local authority
 
An ex-local authority property must be located in an area or block where 50% or more of the properties are privately owned.
Ex-pats
 

Ex-pats are acceptable providing they own a property in the UK.

F
First time landlords
 

First time landlords are acceptable, but not if the applicant is also a first time buyer.

Foreign Nationals
 
Foreign nationals are acceptable where they have proven UK mortgage conduct.
Freehold flats
 
Single Freehold flats and maisonettes are not acceptable (unless whole block is being taken as security).
G
Gifted deposits
 
  • Family gifted acceptable.

Expats and Foreign Nationals:

  • No.
H
HMO experience
 
No HMO experience is required providing:
  • a managing agent is in place
  • the applicant has UK mortgage experience
HMOs
 

General 

  • HMOs are accepted in principle for purchase or remortgage 
  • Borrowers must hold the relevant HMO Licence upon completion. Castle Trust Bank will require verification via the conveyancing solicitor
  • The maximum number of tenants per property is six
  • HMOs will only be considered where they are in a proven HMO area.

Property 

  • No more than one kitchen, unless a large HMO (at least three storeys high and at least five tenants forming more than one household) where the limit is two kitchens 
  • No more than four habitable storeys 
  • No more than six lettable rooms 
  • Standard construction
  • Purpose built HMOs, hotels and hostels are not acceptable.
Holiday lets
 
We accept Holiday Let applications on our Buy to let products, we use holiday let income rather than AST.

First Time Landlords are acceptable.
I
Income
 
  • There is no specified minimum income, but applicants must have demonstrable income and a suitable repayment strategy.
  • Where an application is a joint application, and one of the applicants has a demonstrable income to cover the repayment, joint applicants who are students or unemployed will be considered.
L
Legal charge
 
Buy to Let loans are available on a first charge basis. 
Let to Buy
 

Let to Buy applications will not be accepted where the application is a Consumer Buy to Let.

Limited Companies
 
  • Limited Company applications are accepted. The limited company must be registered and trading in England or Wales and be incorporated for the sole purpose of buying and holding residential investment property. 
  • Newly incorporated limited companies are acceptable provided at least one director has a track record of buy to let ownership, involving three or more properties for a minimum of 12 months.
  • All Applicants/Guarantors must provide Personal Guarantees on a joint and several basis.
  • Credit reference checks will be carried out on the company and its directors.
Loan Purpose
 

TermTen loans are available for any legal purpose.

Bridge to Let loans do not allow capital raising for any other purposes than use on our security.

Location
 
Applications are only acceptable for properties in England and Wales.
M
Maximum age
 
The maximum applicant age at the end of term is 85.
Minimum age
 
The minimum applicant age is 21.
Minimum floor space
 

The minimum floor space is 35m per unit. If property is an MUB we can consider units between 30 and 35m, so long as the average of the block is 35m or more.

Minimum ownership period
 

There is no minimum ownership period.

Minimum unexpired lease
 

The minimum acceptable unexpired lease is 60 years at maturity.

Missed mortgage payments
 

No missed payment within last 12 months. We can accept a maximum of two missed payments in the last 36 months, excluding the first 12 months.

Multiple properties in portfolio
 
  • Where an applicant has an interest in four or more distinct mortgaged buy to let properties, a stress test will be applied to assess the position of the entire portfolio.
  • Where there is a shortfall, we will take a view depending on how many properties this affects, the strength of the portfolio and the broader financial circumstances of the applicant.
N
New builds
 
New builds are acceptable, we require an acceptable New Build Warranty. Please contact your BDM for details.
Non-EU nationals
 

We accept applications from non-EU nationals on a case by case basis. Please speak to your BDM for more details.

O
Occupancy
 
  • A maximum tenancy duration of 12 months with six monthly break clauses is required.
  • Properties with occupancy restrictions are not acceptable.
Ownership
 
  • Ownership can be as either an individual or corporate borrower.
  • Corporate borrowers must provide personal guarantees from all Directors on a joint and several basis.
  • Power of Attorney applications are not acceptable.
P
Portfolio landlords
 
We accept applications from portfolio landlords.
Portfolio size
 

There is no limit on the size of a Buy to Let portfolio.

Property location
 
Applications are only acceptable for properties in England and Wales.
Purpose built HMO
 
We do not accept applications on purpose built HMOs.
R
Rental coverage test
 

For TermTen with a 5 year fix and for the 5:2 product, the following stress test will be applied: 

  • Basic rate non-portfolio taxpayers, off-shore clients and Limited Companies: 125% at pay rate.
  • Higher rate taxpayers, portfolio landlords, HMO and holiday lets: 145% at pay rate.

For TermTen with a 2 year fix, the following stress test will be applied: 

  • Basic rate non-portfolio taxpayers, off-shore clients and Limited Companies: 125% at pay rate plus 2%.
  • Higher rate taxpayers, portfolio landlords, HMO and holiday lets: 145% at pay rate plus 2%.

The applicant’s other income and/or financial resources which can supplement rental income can also be considered to maximise borrowing potential.
Roof types
 

Acceptable 

  • Standard roof construction from slate
  • Standard roof construction from tile
  • Standard flat roof
  • Thatch considered on an individual basis
  • Felt flat roof where it covers less than 50% of gross roof area.

Unacceptable

  • Felt flat roof in excess of 50% of gross roof area.
S
Security location
 
Applications are only acceptable for properties in England and Wales.
Security types
 
  • Houses (terraced, detached, semi-detached)
  • Bungalows 
  • Leasehold flats and maisonettes (purpose built or converted) with an unexpired lease terms in excess of 60 years at maturity of the loan
  • Flying Freehold up to 15% of the size of the property
  • Blocks of flats: Castle Trust applies maximum limits depending on the charge taken:
    • Freehold: If we take a charge of the freehold, we are able to consider applications on the entire block
    • Leasehold: If we take a charge of the leasehold, we are able to consider applications up to 20% of the block.
  • Grade 2 properties 
  • Studio flats, minimum 35sqm per unit. If property is an MUB we can consider units between 30 and 35sqm, so long as the average of the block is 35sqm or more.
  • Flats above 6 floors ie 7th floor upwards (no ex-council blocks)
  • Self builds (subject to a valuation and structural survey report).

We may consider other property types, on a case by case basis, please speak to your BDM.  

Security value
 
TermTen
The minimum acceptable security value is £75,000. The maximum security value is £15m.

Bridge to Let
The minimum acceptable security value is £75,000. The maximum security value is £4m.
Stress test
 

For TermTen with a 5 year fix and for the 5:2 product, the following stress test will be applied: 

  • Basic rate non-portfolio taxpayers, off-shore clients and Limited Companies: 125% at pay rate.
  • Higher rate taxpayers, portfolio landlords, HMO and holiday lets: 145% at pay rate.

For TermTen with a 2 year fix, the following stress test will be applied: 

  • Basic rate non-portfolio taxpayers, off-shore clients and Limited Companies: 125% at pay rate plus 2%.
  • Higher rate taxpayers, portfolio landlords, HMO and holiday lets: 145% at pay rate plus 2%.

The applicant’s other income and/or financial resources which can supplement rental income can also be considered to maximise borrowing potential.
Student accommodation
 
Purpose built student accommodation is not accepted as security.
T
Tenancy details
 
  • Buy to Let properties must have a maximum tenancy duration of 12 months with six monthly break clauses.
  • Limited Company lets, acceptable where the tenant is a named individual.
  • Longer terms are acceptable by negotiation, subject to relevant break clause. 
 
Tenure type
 
  • Single Freehold flats and maisonettes are not acceptable (unless whole block is being taken as security).
  • Leasehold flats and maisonettes are acceptable.  If leasehold, there must be 60 years unexpired at the maturity of the loan term.
  • Flying freehold up to 15% are acceptable (subject to referral).
U
Unacceptable security types
 

  • Commercial properties
  • Freehold flats/maisonettes (unless whole block is being taken as security)
  • Flying Freeholds above 15% of the gross external floor area of the property
  • Mobile homes
  • Houseboats
  • Properties with agricultural restrictions (farms / crofts)
  • Properties with occupational restrictions
  • Bed sits and B&Bs
  • Multi occupancy properties that do not meet Castle Trust Bank HMO criteria
  • Work units
  • Ex-local authority properties still within their pre-emption period
  • Grade 1 and Grade 2* properties.

 

Mortgages
This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Your clients’ property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it. Loans are subject to status, terms and conditions.

Castle Trust Bank means Castle Trust Capital plc, a company incorporated in England and Wales with company number 07454474 and registered office at 10 Norwich Street, London, EC4A 1BD. Castle Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 541910. Buy to Let is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

© 2021 Castle Trust Bank. All rights reserved.

This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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