Buy-to-let mortgages
for intermediaries.

Lending criteria

Here you can find a summary of our key buy-to-let mortgage criteria. For full information, please download our lending guidelines.

Buy-to-let
Refurb-to-let

Minimum age

21

at the beginning of the mortgage term

Maximum age

85

at the end of the mortgage term

Minimum term

5

years (or 60 months)

Maximum term

35

years (or 420 months)

Minimum loan amount

Purchase or remortgage

£30,000

(excluding any fees added to the loan)

Minimum loan amount

Further advance

£5,000

(excluding any fees added to the loan)

Maximum loan amount

Three or fewer mortgaged SSC properties:

£1,000,000

(up to 75% LTV)
Please see table below

Maximum loan amount

Four or more mortgaged properties:

£4,000,000

(up to 65% LTV)
Please see table below

Maximum LTV loan amount

For individuals with three or fewer single self-contained (SSC) mortgaged buy-to-let properties:
up to 75% LTV maximum loan up to £1,000,000
up to 80% LTV maximum loan up to £750,000
For individuals with four or more mortgaged buy-to-let properties, limited companies and applications for Houses in Multiple Occupation (HMO) or multi-unit blocks:
up to 65% LTV maximum loan up to £4,000,000
up to 70% LTV maximum loan up to £1,500,000
up to 75% LTV maximum loan up to £1,000,000
up to 80% LTV maximum loan up to £750,000

Any fees added to the loan will be taken into account for higher LTV applications and included within both the maximum loan available and LTV calculations. The total amount of the loan, plus any fees added, must not exceed 80% LTV.

Maximum aggregate borrowing

(including any fees that are added to the loans)

Three or fewer mortgaged buy-to-let properties: 

£1,000,000

Four or more mortgaged buy-to-let properties, limited companies and applications for Houses in Multiple Occupation (HMO) or multi-unit blocks: 

£10,000,000

Income

Applicants should have a minimum combined gross annual income of £25,000 per annum. 

All income must be evidenced and can include:

  • Gross employment income 
  • Taxable self-employed income
  • Occupational or private pension income
  • State pension income 

However, we understand the specialist nature of a landlords’ income structure. So, where a landlord or limited company has four or more properties, and can’t meet the £25,000 minimum income, but can demonstrate they have sufficient income to cover their existing expenditure, we will consider and assess these applications on a case-by-case basis. 

Affordability

Any fees that will be added to the loan will be included in the loan amount used in both the current and future affordability calculations. 

All applications will be subject to validation of: 

  • The income requirements above
  • The gross rental income from the property equalling or exceeding the Interest Cover Ratio (ICR), as determined using a combination of the tax band applicable to an applicant’s income and the property type. The tax band applicable to the applicant with the highest income will be used 

Future affordability will also be taken into account and may limit the maximum loan amount available. Before submitting an application, please ensure you check how much we may be able to lend your client by using our online calculators.

For further advances, the affordability assessment will take into account both the proposed advance (inc. fees added to the loan) and the existing loans secured against the property. 

The tax band and ICR levels are as follows:

Applicant type Single self-contained properties HMOs, multi-unit blocks and all other property types
Basic rate tax payers (20%) 125% 130%
Limited company 125% 130%
Higher rate tax payers (40%) 140% 145%
Additional rate tax payers (45%) 140% 145%

We must be satisfied that the applicant(s) are able to withstand increases in mortgage interest rates, cover rental voids and be able to afford the mortgage now and after any fixed/discounted period expires. We may request evidence of contingency funds which could be used to support increased mortgage payments. We may decline an application if we believe the applicant will not be able to meet mortgage payments should interest rates increase. 

Property

Minimum property valuation:

£75,000

Properties must have a minimum Energy Performance Certificate Rating of E, unless there is an applicable exemption.

We will consider:

  • Single self-contained properties
  • Properties divided into a maximum of 20 units
  • Houses in multiple occupation (HMO’s)

For multi-unit properties and HMO's, landlords must have a minimum of two years’ lettings experience. Please see our Buy-to-let Lending Guidelines to see the minimum valuations that apply to multi-unit properties and HMO's.

Solicitors

We will normally instruct the applicant’s solicitors to act provided that the firm is registered on Lender Exchange, has agreed to our terms and conditions and has been accepted onto our conveyancing panel. To see if your client’s solicitor is on our panel of approved firms, please check the Lender Exchange website. 

Direct Debit instructions

Monthly payments must be made by direct debit from an account with a UK based bank in the applicant’s name.

Consumer buy-to-let

We will accept applications that qualify as consumer buy-to-let mortgage contracts if the appropriate criteria is being met. For more information, please visit our Consumer buy-to-let page.

Minimum age

25

at the beginning of the mortgage term

Maximum age

75

at the end of the mortgage term

Minimum loan amount

£30,000

Purchase or remortgage

Maximum loan amount

£1,000,000

Purchase or remortgage

Minimum property valuation

£50,000

Minimum term

1 month

Maximum term

6 months

Maximum aggregate borrowing

£5,000,000

Loan to value (LTV):

Maximum LTV based on initial loan where interest is rolled up Maximum LTV based on end loan balance where interest is rolled up Maximum LTV based on initial loan where interest is serviced Maximum LTV where loan is >£750,000
70% 75% 75% 70%

Income

Applicants should have a minimum combined gross annual income of £25,000 per annum. However, we understand the specialist nature of a landlords’ income structure, so we will consider and assess all applications on a case-by-case basis 

All income must be evidenced and can include:

  • Gross employment income 
  • Taxable self-employed income

State benefits and investment income will not be considered.

Repayment methods

Interest only loans with the repayment type of either monthly payments or gross rolled up interest are available.

Solicitors

We will normally instruct the applicant’s solicitors to act provided that the firm is registered on Lender Exchange, has agreed to our terms and conditions and has been accepted onto our conveyancing panel. To see if your client’s solicitor is on our panel of approved firms, please check the Lender Exchange website.

Consumer buy-to-let

We will not consider refurb to-let applications that qualify as consumer buy-to-let mortgage contracts.


Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551