Your clients can choose between an ICR mortgage, that uses their rental income to calculate affordability, or Top Slicing, which can boost the amount they can borrow, by using a combination of rental income and their personal income.
You can create an AIP for either with a soft footprint, only leaving a hard footprint once your client’s ready to proceed to a full application.
Use our Buy to Let affordability calculator to see how much they could borrow.
Criteria highlights for all Buy to Let mortgages
- Maximum individual loan amount is £750,000
Up to 75% LTV
- Maximum portfolio size of 3 Buy to Let mortgaged properties per applicant (either solely or jointly) across all lenders, including Bank of Ireland Group
- Maximum value of loans from Bank of Ireland across the customer’s portfolio is £2,000,000
- Available for purchase and remortgage.
Check whether your clients and their property meet our lending criteria.
Additional Buy to Let Interest Cover Ratio (ICR) criteria
- No minimum income required
- Ability to pay is assessed on rental income (which must be received in GBP)
- The rental income must be at least 145% of the monthly interest due inclusive of any product fees added to the loan. This is calculated using the relevant stress rate below (whichever applies):
|Product Stress rate||Stress rate|
|Fixed rate for less than 5 years or a variable rate||5.5%|
|Fixed rate for 5 or more years||4.5%|
Additional Buy to Let Top Slicing criteria
- Rental income must be at least 100% of the monthly interest due, inclusive of any product fees added to the loan. This is calculated using the applicable stress rate shown in the table above
- Minimum household income of £40,000
- Minimum property value of £100,000
- Maximum of 4 applicants - all must live at the same residential address and at least 1 must be a homeowner.
Let to Buy
Let to Buy allows clients to let out their existing property in order to purchase an onward residential property. Standard Buy to Let criteria applies whether your client is taking an ICR or Top Slicing mortgage.
We will need the following information for Let to Buy:
- Address and purchase price of the new property
- Amount of the new mortgage and the monthly mortgage payment
- A full breakdown of how the loan is being used e.g. deposit / fees / improvements.
Let to Buy properties must have a valid EPC with a rating between A-E (unless exempt) at the time the valuation is carried out. If an EPC is not held, additional costs may be incurred and your client’s application might be delayed.