Green Buy to Let mortgages
We offer a range of Green mortgages to help support your clients with more energy efficient Buy to Let properties. We offer better rates for properties with energy performance ratings A, B or C, available for both purchase and remortgage.
It’s as easy to secure one of our Green products as a standard Buy to Let - you don’t need to provide anything extra. Simply make sure the property has a valid energy performance certificate (EPC) showing a rating of A, B or C to qualify. This can be checked via the Government website, or the Energy Saving Trust for Scottish properties.
Green mortgages are available for both ICR and Top Slicing.
Standard Buy to Let mortgages
If your client’s property has an EPC rating of D-E, we have a range of standard Buy to Let mortgages to choose from.
Your client’s affordability
There are 2 ways to calculate your client’s affordability for any of our Buy to Let mortgages:
- ICR – this uses your client’s rental income to calculate affordability.
- Top Slicing – this boosts the amount the client can borrow by using a combination of rental income and their personal income.
ICR and Top Slicing mortgages are available in both our standard Buy to Let and Green ranges.
Use our Buy to Let affordability calculator to see how much they could borrow.
You can create an AIP with a soft footprint, only leaving a hard footprint once your client’s ready to proceed to a full application.
Criteria highlights for all Buy to Let mortgages
- Available for purchase and remortgage
- Up to 75% LTV
- Maximum individual loan amount is £750,000
- Maximum portfolio size of 3 UK Buy to Let mortgaged properties per applicant (either solely or jointly) across all lenders, including Bank of Ireland Group. Properties that are owned in the name of a limited company which an applicant is a director of, and applications in progress, should also be included
- Maximum value of loans from Bank of Ireland across the customer’s portfolio is £2,000,000
- All Buy to Let properties must have an EPC available with a rating of A-E (Scotland A-D), or A-C for a Green mortgage, before the valuation is carried out. In England and Wales only, we’ll also accept properties listed on the PRS Exemptions Register.
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 less than 5 years or a variable rate||The higher of 5.5% or product pay rate + 2%|
|Fixed rate 5 years or more||The higher of 4.5% or product pay rate + 1%|
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.