Our buy-to-let mortgage criteria apply to all our BTL mortgage products unless otherwise stated. You can also contact our team to get further details specific to your case.
Buy-to-Let Mortgage Criteria
First-time buyer or first-time landlord considered.
First-time landlord considered for specialist properties (HMO, MUFB) on Bespoke Tier only. Underwriter to check competency and use of specialist letting agent. Min. income £30k from employment, self-employment or private pension.
First-time buyer who own no other property: Considered if mitigating circumstances and full income assessment to ensure mortgage affordability without any rental income.
Currently not considered for BTL mortgages.
£199 per property (max £995), non-refundable, paid with val fee.
As part of our buy-to-let mortgage criteria the underwriter can consider cases with BKO/IVA/DRO/Previous Repossession/recent CCJs or mortgage arrears on their merits on the Bespoke Tier, subject to Credit Committee approval.
Refer to tiers for limits. All adverse and CCJs, excluding small unsecured blips, must be cleared at completion – MFS funds can be used. Adverse is combined (all persons/Ltd Co’s), and small blips can be ignored for tier selection (see rate grid). Require explanation of mortgage exit strategy, current stability, and credit committee approval (usually under 48hrs). Pay day loans considered if infrequent, historic and cleared.
21 to max 75. Over 75’s by referral with legal advice to confirm advanced aptitude.
- First-time buyers
- First-time landlords
- First-time commercial landlords or owner-occupiers
- Limited & trading companies
- Ages 21 – 75+
- Adverse and impaired credit of any size
We accept auction purchases and are able to provide funding in as little as 3 days.
Up to 5%, written confirmation required.
Yes, as long as <40% of the loan amount is for personal reasons.
We currently offer BTL loans on first charge only.
We do not currently offer commercial buy-to-let mortgages.
The usual acceptable brick/tile. No structurally repaired/PRC, deleterious materials or with built-in obsolescence (finite lifespan). Refer listed properties. Modern Methods of Construction considered by referral with surveyor opinion and readily saleable.
SPVs setup specifically to hold/operate BTL properties, or relevant Trading Companies or LLPs are acceptable. Up to 4 directors, who combined own at least 75% of the SPV between them. Shareholders under 18 or hold < 20% are not underwritten. Debenture incorporating fixed & floating charge required to keep MFS informed of any future changes.
We require a credit check as part of our loan application process.
Allowed, as long as they meet our maximum adverse credit criteria. Personal debts subject to being less than 40% of total loan size.
Up to 2%.
Example: 8.99% full rate with 2% deferred becomes a pay rate of 6.99% for initial 2 years. ICR is calculated on the reduced pay rate. Deferred part of monthly interest payments in initial 2 years are capitalised (added to the loan) and paid when the loan is redeemed. Can help cashflow or simply allow a larger loan size as rent versus monthly payment generated a higher ICR (see ICR section).
Our buy-to-let mortgage criteria require the EPC rating of the property to be E or above.
Tracker: 3%/2.5%. No ERC during revert rate period.
Fixed: 4%/3%. No ERC during revert rate period.
Valuation to reflect property (e.g. high rise, balcony access), EWS1 fire risk, and saleability. No preemption title restriction.
No exit fee.
We consider multiple viable exit routes.
Minimum 30sqm gross internal area on flats section. Flats above (or immediately adjacent to) commercial premises up to max Tier LTV, except when a restaurant, takeaway, pub, or launderette; max LTV 60% Tier 2, 65% Tier 3, and considered to 70% Bespoke Tier 4.
Flying Freehold: Up to 15% by referral.
Enhanced due diligence and history in both UK and abroad required if there is a limited UK footprint (property, current accounts, credit etc). We reserve the right to restrict LTV, term, loan size, or increase minimum ICR. The foreign national can be working or retired. Proof of overseas and UK addresses (if relevant) required. Country of residence can be worldwide if not sanctioned or on the FATF blacklist. UK bank account required for direct debit.
Yes, subject to Deed of Gift Indemnity Policy and letter relinquishing all property/gift rights.
Gross loan amount for buy-to-let mortgage criteria: £150k minimum (£100k by referral as an exception). £3m max. per property. Aggregate max. £7.5m (£10m by referral) with MFS for each Ultimate Beneficial Owner (UBO). The gross loan includes capitalised items such as the product fee, any rolled and/or deferred interest. The net loan (advanced on day 1) is reduced by the total of these capitalised amounts (and any optional broker fee) to ensure sufficient equity remains in the property to protect the borrower and lender.
Required from all directors and major shareholders to cover 100% of the loan. Not applicable for individual applicants.
Inexperienced landlords (< 1yr) on Bespoke Tier only. Refer to tiers for max rooms/size. Larger HMOs (7 or more, usually ‘sui generis’) may require commercial valuation, to be confirmed by underwriter. Where required, local authority licence to be evidenced or condition for the borrower to apply following purchases. Solicitor will check on remortgages.
Standard max. LTV, loan size, nationality and corporate structures apply for holiday lets, and can be part of a portfolio. Can take weekly average rent for high/medium/low season and assume 30 weeks occupancy for ICR of 130% – can take valuer opinion, reputable holiday letting agency letter, or actual holiday letting history. Leases less than 6 months. Should be able to be used as a normal AST BTL, i.e. no remote or a cabin etc.. Refer for exception if occupancy restrictions exist, or part of a holiday park solely for holiday lets. Refer areas like London with 90-day occupancy restrictions. AirBnB acceptable.
Minimum ICR is 130% regardless of corporate or individual, location of applicant, tax status etc.
Calculated as total rent income over 24 month term, divided by total interest due over same period. However, the total interest due in the initial 24 month term can be reduced by rolling up months of interest or deferring part of the interest rate; this can increase the ICR, enabling a larger loan as long as the resulting ICR is above our minimum. These tools can also help if the valuation comes in lower than expected.
We can allow deferred interest (see max loan calculator for limits) to reduce the interest due over the initial 2 year term – boosting max loan. E.g. a rate of 8.99% with 2% deferred results in a pay rate of 6.99%.
Top slicing: surplus portfolio rents, salary or savings/wealth can be considered to boost the rent by up to 20%. Refer to underwriter.
Alternatively, or in addition, roll-up and defer up to 6 months (9 months by referral) interest payments -direct debit starts after roll-up period.
Any deferred/rolled months of interest are capitalised (added) to the loan and paid at redemption. Loan advance reduced to preserve property equity to protect MFS and the borrower.
Direct Debit (DD) payments normally start after the deferred months to provide time to find a tenant or light renovation.
We reserve the right to increase minimum ICR for expats & foreign nationals with a limited UK footprint.
First-time landlord or FTB min. £30k/year from employment, self-employment or private pension.
No search policy or title insurance acceptable. Solicitor to confirm suitable policy & cover. Costs deducted from loan.
Serviced monthly via direct debit from a UK bank account. If any months of interest are rolled and added to the loan, direct debit will start after those months have elapsed.
Acceptable. Refer if under 85 years unexpired at the start of the loan.
We provide quotes upon application to find the appropriate solicitor firm to represent MFS from a small panel, suitable for the transaction type and timescales required. We do not permit dual representation due to the complex nature of our BTL transactions (e.g. any conflict of interest that may arise can result in abandoned transactions, lost time and incurred fees with dual rep).
Limited and trading companies incl. SPVs considered.
Purchase or remortgage, including capital raising if 40% or less is for personal reasons.
Properties in mainland England and Wales considered.
Max. 75% on the gross loan, or tier maximum if lower. Product fee is capitalised and included in the gross loan. Cannot add other fees into the loan.
Inexperienced landlords (< 1yr) on bespoke tier. MFS take charge on the freehold. Up to 30 units, each with separate services/facilities, but tiers may have lower unit limits. Larger MUFBs may require commercial valuation. No mixed use (all resi flats). ICR/Value/LTV: Lower of aggregate flat-by-flat basis or single investment value on vacant possession.
As part of our buy-to-let mortgage criteria, we lend to borrowers from anywhere in the world other than a sanctioned/blacklisted country, including:
- Foreign Nationals
- Offshore Companies
- Offshore Trusts
Satisfactory planning, new build warranty and building regulation sign off required. No outstanding S106 / CIL obligations.
Isle of Man, Channel Islands, British Virgin Islands, Gibraltar, or EU as standard. Considered outside this list subject to underwriter/credit committee and enhanced due diligence between solicitors in UK and offshore about structure, solvency, director/shareholder details, and enforceability. All loans subject to England & Wales law. UK bank account required for direct debit.
Yes, up to 10% p.a. without incurring ERC. No limit/ERC after initial 2 year tracker or fixed rate period.
Considered by referral. Based on the nature of current/previous role and exposures. May require guarantees.
Appropriate planning required.
Property portfolios are accepted up to a £10m loan amount.
Residential. Examples: residential homes, new builds, holiday-lets, HMOs, short-term lets, and mixed-use spaces.
If lending on a single property, minimum £200k, £150k by exception. If the loan is across multiple properties, minimum £100k.
We currently do not provide regulated BTL.
Remortgage within 6 months: £ for £ bridge exit is fine, fees can be added to bridge settlement figure. Non-bridge considered with clear evidence of improvements (valuer confirmation), funds paper trail, or bought a part-exchange from housebuilder etc.
Sufficient to meet our ICR requirement.
Interest Only (I/O) by monthly Direct Debit from a UK account. If loan has rolled up months of interest, direct debit will start after the rolled months have passed.
3 years UK history, otherwise enhanced due diligence, or subject to Expat/Foreign National criteria.
Roll-up 1 to 9 months payments.
Rolled up months of interest are added to the loan and paid when the loan is redeemed. Can help cashflow, time for light refurbishments/EPC improvement, find a tenant, or simply allow a larger loan size (see ICR section). Direct debit starts after rolled months have elapsed.
Self-employed considered. Age: 21+. If first-time landlord or FTB: min. income £30k/year.
Currently not accepted.
SPVs accepted. Up to 4 directors, who combined own at least 75% of the SPV between them. Shareholders under 18 or hold < 20% are not underwritten. Debenture incorporating fixed & floating charge required to keep MFS informed of any future changes.
All occupants on a single AST, jointly and severally liable for the rent.
Our buy-to-let mortgage criteria require an agreement in writing, joint tenants have joint and several liability, and all adult occupants on the agreement. Corporate lets, ASTs 6-36 months, and DSS tenants acceptable.
3 years in total. No ERC after 2 years.
Surplus salary, savings/wealth, or surplus portfolio rent considered to support MFS loan(s) if properties wholly owned by same applicants, and not used as top-up for other lenders. Can boost rent by maximum 20% to improve ICR. Refer to underwriter to consider top-slicing.
Any changes to BBR applied from 1st of the following month. Any rolled up & capitalised months are calculated at TODAY’S BBR, not a predicted future value. MFS may use a stressed BBR to calculate max loan or require additional income evidence to prove resilience. May use 180 day valuation.
Onshore or Offshore acceptable subject to trust deeds, setup/structure, personal guarantees from owners, and due diligence.
Our BTL mortgages are unregulated.
From our panel, allocated by the underwriter based on workload/response time, speciality & location. Full formal valuation to consider current market value, investment value, 90 & 180 day value. Fee paid along with admin fee before instruction.
Speak to one of our underwriters or BDMs on the phone, via chat or email about your case, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.