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Criteria changes from Stafford Railway.

15 December 2016

Stafford Railway has listened to feedback their broker network and they have made some changes to their lending criteria. As below:

  • Max loan £1million
  • Portfolio landlords with 4 or more properties – Must have an independent income of £25,000 excluding property income.
  • Rental yield – up to 50% LTV 130% of 5.5% ICR
  • 50 – 70% LTV 140% of 5.5% ICR
  • EX pat BTL applicants cannot be self-employed.
  • Secured guarantors – There is no upper age limit for secured guarantors, however if they will exceed 85 during the term of the mortgage a lasting power of attorney must be drawn up and lodged with the Society prior to mortgage completing
  • Additional investment income from private limited companies can be used past the age of 70 with 3 years accounts/SA302’s
  • Will lend on retirement properties where the occupant must be aged 55 or over, the maximum LTV is 75%
  • The Society will consider profits available to a controlling shareholder of a private limited company as acceptable income. This is calculated as the applicants pro rate share of profits before tax. Where profits available are used in the affordability calculation an additional financial review will be carried out to assess that there is sufficient cash flow in the business to fund the distribution of the additional profit.

You can view their website here for further information.

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