Coventry Building Society to Let Mortgages
Coventry Building Society Buy to Let Mortgages
About Coventry Building Society
Coventry Building Society was initially founded in 1884 as the Coventry Permanent Economic Building Society. By the beginning of the First World War it was the largest building society in the area.
Following several mergers throughout the 1970s and 1980s, the organisation took on its current name of Coventry Building Society. Following another merger with Stroud & Swindon Building Society, Coventry is now the UK’s third largest building society and offers a wide range of competitive buy to let mortgage deals.
Coventry Building Society offers a range of buy to let mortgage deals that suit a variety of different set of circumstances, and serve various buy to let property needs. Use our free comparison service or contact us on 0117 403 4474 to compare mortgages offered by Coventry Building Society along with various other lenders.
Can I get a Coventry Building Society buy to let mortgage?
Like any other financial product, Coventry Building Society has a set of criteria to determine whether you are eligible for their deals.
- Applicants must be 18 or over, and must be no more than 75 years old at the end of the mortgage term
- Applicants must not have claimed for bankruptcy
- Applicants must already own a UK property
- Any County Court Judgements, defaults or arrears recorded against an applicant’s name within the last six years will affect the applicant’s eligibility
- The maximum loan limit is £1m total with the Coventry Building Society
- The maximum number of rental properties you can have with the Coventry Building Society is three per household and a maximum of 10 properties with all lenders
Buy to let mortgage regulations
Make sure that before applying to Coventry Building Society for a buy to let mortgage that the changes to the buy to let mortgage regulations are considered.
The Bank of England’s Prudential Regulation Authority made changes to the regulations that govern the buy to let mortgage market, which altered how lenders review buy to let applications.
Income Stress Test: Lenders will use a stricter income stress test than in years past. This means that lenders will take every precaution to minimise the risk of landlords falling behind on their mortgage repayments. As such, landlords will need to show that they can afford mortgage repayments even in the event that interest rates hit 5.5%.
Increased Rental Coverage Ratio: Prior to 2017, lenders would grant buy to let mortgages to landlords with a rental coverage ratio of 125%. Nowadays, landlords need a rental coverage ratio of at least 145% and 170% for standard buy to lets and houses in multiple occupation, respectively. Lenders will only accept a rental coverage ratio estimate that is based on a professional surveyor’s valuation, which means landlords cannot simply increase the rental coverage ratio on their application.
Review of Entire Portfolio: From 2017, lenders will take an in-depth look into the landlord’s portfolio and if the landlord has one or more properties that are not profitable, then a buy to let mortgage will not be granted. It must be noted that landlords can no longer spread equity across their portfolio to cover up a property that does not provide a positive return.
We work with most UK lenders including Coventry Building Society, which means we have access to leading buy to let mortgage rates. Additionally, we recognise that finding the right buy to let mortgage deal for you can be strenuous and time consuming. We can deliver personal advice and guidance to help you through every stage of the application and beyond. If you feel like you would benefit from the assistance of one of our buy to let mortgage advisers, fill in our call back request form, or alternatively call us direct.