Build it
Build it
Development finance
Ground-up, conversion and part-built schemes, from site purchase to exit.
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Development finance
Which cap binds, loan to cost or loan to GDV, and the real day-one equity.
Build to Rent development
Underwritten on stabilised yield and DSCR, not sales rate.
Mezzanine and stretched senior
The gap between senior LTC and what you can fund, and the true blended cost.
Heavy refurbishment and conversion
Where refurbishment stops being a bridge: structure, change of use, drawdowns.
Part-built and rescue finance
Valuing an unfinished asset when the contractor has gone.
Bridge it
Bridge it
Bridging finance
Short-term debt where the deadline, the asset or the exit will not wait.
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Purchase bridge
Completing before the money is in place: chain breaks, tight deadlines, unmortgageable stock.
Development exit finance
Off development debt at a lower rate, to buy sales time and release equity.
Auction finance
A 28-day clock, and what must be in place before the hammer falls.
Pre-planning and planning gain
Lending against current value with planning upside.
Below market value purchase
Day-one lending against open market value rather than price.
Second charge and capital raising
Raising against existing assets, and first-charge consent.
Light refurbishment finance
Bridge plus refurb tranche, and where the development boundary sits.
Also structuredBridge to let and refinance
Hold it
Hold it
Mortgages and term finance
Long-term debt against income, once the asset is built, let or trading.
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Buy to let mortgages
ICR stress testing, limited company against personal, portfolio rules.
HMO mortgages
A higher cover test, licensing, and the two valuations a lender takes the lower of.
Commercial term, investment
Tenant covenant and lease term, and why DSCR sets the loan.
Commercial term, owner-occupier
Trading accounts and EBITDA rather than rent roll.
Portfolio refinance
Cross-collateralisation, and one facility against individual loans.
Stabilisation and term refinance
The income test replacing the GDV test, and the letting void before term debt engages.
Co-living and PBSA
An operational asset valued on income, and the operator covenant.
Run it
Run it
Business finance
Funding the business behind the property, secured on the ledger, the equipment or the covenant.
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How we work
Case studies
Articles
Tools
Development finance calculator
Size the facility against site cost, build cost and GDV.
Development exit calculator
Refinance the development facility and release equity at PC.
Bridging finance calculator
What a bridge costs, and what actually clears on day one.
Refurbishment finance calculator
Fund the purchase and 100% of the works, with interest rolled to exit.
BTL rental cover calculator
The rent a buy to let must achieve to clear a lender's cover test.
Commercial mortgage calculator
What a commercial property's income will support, and what it costs.
About
Enquire now
Hold it › Buy to let mortgages
A buy to let mortgage is not sized on what you can afford. It is sized on what the rent covers, at a rate you are not paying. Lenders apply an interest cover test at a stressed rate, commonly 5.5% or higher, and require the rent to exceed the stressed payment by a margin rather than merely match it.
That is why a property yielding comfortably at the pay rate can still fail. The test is run at the stress rate, not the product rate, and in a higher rate environment it is the stress test rather than loan to value that sets the loan on most properties.
Ownership structure changes the arithmetic before any of that. Limited company and personal ownership are taxed differently, stressed differently and priced differently, and once you hold four or more mortgaged properties the portfolio landlord rules bring the whole portfolio into the assessment rather than just the property being bought.
Set the value and the stress rate and see the rent you need to clear cover.
The stress test run before you offer
We calculate the achievable loan at the lender's stress rate on the evidenced rent, not the pay rate on the expected rent. That number decides your deposit, so it belongs before an offer rather than after a valuation.
Company against personal, on your numbers
The right structure depends on your tax position, how long you intend to hold and what else you own. It is not a rule of thumb, and it is expensive to change later.
Portfolio landlord rules anticipated
At four or more mortgaged properties the lender assesses the whole portfolio: aggregate leverage, aggregate coverage and a business plan. One weak asset can hold up a purchase that has nothing to do with it.
Rent evidenced, not estimated
The valuer's rental assessment sets the loan, not the agent's appraisal. Where they differ, the valuer wins, so it is worth knowing the comparables before the report is written.
Which lenders play here
Specialist buy to let lenders, building societies and the mainstream banks, with sharply different appetites for limited company borrowing, portfolio landlords, houses in multiple occupation and anything above a standard residential unit. The differences between them are structural rather than a few basis points.
5.5%
Typical stress rate
125-145%
Typical interest cover
75%
Common maximum LTV
4+
Properties, portfolio rules apply
Indicative, and not an offer. What a lender will actually do depends on the scheme, the borrower and a full valuation.
What to have ready
Bring these and we can tell you where you stand.
Each one is something a lender will ask for. Having it early is the difference between a fast answer and a slow one.
✓The property, the price, and the rent with comparable evidence
✓Your existing portfolio: properties, values, balances and rents
✓Ownership intention: personal or limited company, and the reasoning
✓Deposit, and demonstrably where it is coming from
✓EPC rating, and any licensing that applies
✓How long you intend to hold, and what the eventual exit looks like
Related
Worth reading on this
Next
Related in this pillar.
Common questions
The questions this product raises.
How much can I borrow on a buy to let?
It is set by the rent, not your income. The lender tests the rent against the mortgage interest at a stressed rate, higher than the one you will pay, and needs it to clear by a margin, commonly 125% for a limited company or basic rate taxpayer and 145% at the higher rates. On most properties that test, not the loan to value, sets the loan.
Should I buy personally or through a limited company?
It depends on your tax position, how long you plan to hold and what else you own. The two are taxed, stress tested and priced differently, so the choice changes how much you can borrow as well as what you pay. Take tax advice before you offer, because the structure is expensive to change later.
What changes once I have four or more mortgaged properties?
The lender assesses the whole portfolio, not just the property you are buying: total borrowing, total rental cover and a business plan. One weak property elsewhere can hold up a purchase that has nothing to do with it, so have the full schedule of properties, values, loans and rents ready.
Whose rent figure does the lender use?
The valuer's. The lender lends against the valuer's rental assessment, not the letting agent's appraisal, and where the two differ the valuer wins. Know the comparable lettings before the valuer writes the report.
Bring us the detail.
Send what you have. We will tell you what is fundable and what needs work before anyone approaches a lender.
Specialist property finance for developers who want the numbers to survive underwriting.
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Fundingwise Limited is not authorised or regulated by the Financial Conduct Authority, and arranges unregulated finance only. That means lending secured against commercial property, or against residential property that is not, and will not be, occupied by the borrower or an immediate family member as a main residence. We do not advise on or arrange regulated mortgage contracts or regulated bridging loans. Because this finance is unregulated, FCA conduct rules and access to the Financial Ombudsman Service do not apply. Fundingwise Limited is registered in England and Wales, company number 13750788.