Individuals, Partnerships, Sole Traders, Limited Companies and LLPs. For Corporate Customers, we will consider both UK and non-UK based corporate entities.
If your client already has a loan with us and needs to borrow further monies, then we may be able to assist. Please call us to discuss the options.
We will consider affordability in a variety of ways. For serviced loans we will primarily focus on whether the applicants have the resources to be able to service the interest (we will need to see 6 months bank statements and 6 months’ payslips or latest SA302).
Where an applicant has background investment properties we will undertake an assessment of affordability to ensure that the portfolio will not create an undue strain on the resources of the applicants.
Minimum age: 18
Maximum age: 70
We may consider lending beyond 70 where the exit will be via the sale of the property. Please refer to our underwriters.
We will consider applications from applicants whose primary employment is as an agency worker.
First Time Landlord (FTL): An applicant who has not owned a Buy to Let property in the last year.
Experienced Landlord: An applicant who has owned a Buy to Let property for at least the last year.
Consumer Buy to Let (CBTL): An applicant with no other Buy to Let properties and who wishes to obtain a mortgage on a property that has either been inherited or has previously been occupied by the borrower or a related person.
• Up to a maximum of four applicants per application.
• First Time Buyers considered when they apply with an existing property owner.
• The vendor should not be related to the applicant.
• Regulated Buy to Lets where the property will be occupied by the borrower or a member of the borrower’s immediate family, now or in the future, are unacceptable.
We are unable to accept applications from applicants with the following characteristics:
– Criminal convictions (other than minor driving offences) where the conviction has not been spent
– Disqualified company directors (unless the exit of the loan is via an asset sale)
– Foreign nationals who have less than 2 year’s residency in the UK
– Inter-family sales
– Payday loans within last 12 months
– Sale and rent back transactions
Where an applicant has had arrears on a credit agreement (whether secured or unsecured) within the last 3 years, we will require a satisfactory explanation. This may affect the advertised rate.
Asset and Liabilities Statement
We require an Asset and Liabilities Statement for all applications and will rely upon the information contained within it to form a judgement on the suitability of the applicant for credit purposes. The statement should be signed by all applicants/guarantors.
We consider applications for funding to assist purchases at auction. We will require sight of the auction pack.
AVM (Automated Valuation Model)
An automated valuation model (AVM) is a software-based tool that’s used to determine property value. The service uses mathematical or statistical modeling with a combination of existing databases to determine the value of a particular property.
The use of AVMs is allowed on our bridging product up to the advertised LTV.
A confidence level of 5 must be achieved in order for us to utilise an AVM.
Back to Back Sales
We do not usually lend where a back to back transaction has taken place within the six months immediately preceding the application. We will consider back to back transactions where the vendor is a reputable national builder and where the property has been taken in as a part exchange.
Applicants who are individuals must hold a UK bank account.
Corporate borrowers would ordinarily be expected to already hold a UK bank account.
We do not lend where the applicants have a bankruptcy in their name unless the purpose of the loan is to annul the bankruptcy.
Our standard Bridging product where no works are being undertaken to the property, could be first or second charge.
Buy to Let
Where the security for the loan is a property which will be used as a Buy to Let, we will need to be satisfied that there will be an appetite to provide take-out finance by a cross-section of the BTL lender market. To do this, it is anticipated that the property will provide an acceptable Income Coverage Ratio (ICR) that meets typical requirements in the market. The construction will also need to be of an acceptable type and condition for onward lenders to accept.
Where the applicant owns investment property in the background which will not be security for the proposed loan, we will usually undertake an assessment of these properties to ensure that these do not pose a threat to the applicant’s overall financial position.
Capital Repayments (on Live Loans)
We will permit capital repayments, provided they are paid via the Borrowers’ solicitor to our solicitors and not directly to us.
Where the applicants have unsatisfied county court judgements, we will consider providing funds (not for credit repair purposes). The loan will be subject to enhanced underwriting and a satisfactory written explanation. This may affect the advertised rate.
Change of Proposed Security (During the Application Process)
The proposed security is a fundamental part of the application. Consequently, where the proposed security changes, we will start the assessment process again and treat it as a wholly new application.
We treat these in line with our approach for other defaults. We do not allow any new defaults to have been registered in the nine months prior to application. This may affect the advertised rate.
We will consider applications from applicants whose primary employment is as a contractor.
Credit File/Credit Report
We require a credit report for every applicant (where the application is in the name of a limited company a credit report will be required for all directors).
Our preferred provider is ‘Checkmyfile’. The applicants should obtain a copy of their file from this provider and this should be submitted no later than the point of application.
We expect that the details within this report corroborate the information provided elsewhere within the application.
Any application where an applicant has two (or more) satisfied CCJs, or any unsettled CCJs, will be classified as credit impaired, and will be subject to an enhanced level of scrutiny. This may affect the advertised rate.
We do not credit score applications.
The following criteria applies to Limited Company loans:
- A debenture is required (where there is no pre-existing debenture).
- Pre-existing debentures will require a letter of non-crystallisation.
Debt consolidation is a term which generally relates to regulated activity. We do not undertake regulated lending.
However, also see “Re-bridge”.
Debt Management Plans
We will not ordinarily lend where one or more of the applicants is in a debt management plan.
We do not ordinarily permit defaults to have been registered within the nine months immediately prior to application. Where defaults do exist, and we agree to consider lending, the application will be subject to enhanced scrutiny. This may affect the advertised rate.
Where works require planning permission or permitted development rights and up to 4 houses / 8 flats are being constructed. Building Control sign off will be required and there may be a build contract. Works will require monitoring by a Project Monitoring Surveyor appointed by us.
We will not lend to applicants who have diplomatic immunity from UK law.
We lend to both employed and self-employed applicants and we are also able to consider lending to those who meet their income needs from other sources, such as investment income.
Ex Local Authority Houses
We do not differentiate between ex local authority houses and houses built by private builders (subject to the valuer making no negative comments and viability of exit).
We will only lend where an exit strategy has been provided. We will undertake an assessment of the plausibility of the strategy, but the applicants should not take our willingness to proceed to mean that we have endorsed their strategy. The success or otherwise of the exit strategy is wholly the responsibility of the borrower.
Where the security is an investment property and the exit will be via re-finance onto a long-term loan, the borrowing must be capable of meeting typical lending criteria and product parameters from lenders who are active in that market.
The borrower will be required to interact with our Portfolio Managers on a regular basis throughout the term of the loan and provide any information which is needed to support the ongoing viability of their intended exit strategy.
Where the loan is not repaid within the agreed term an exit fee may be charged.
Exposure by Borrower
The maximum number of loans which may be held by any one borrower is four. Where top-up facilities are required for an existing loan, this will be counted as part of the existing loan and therefore is not included within this facility. For established borrowers who have built up a reputation for delivering timely redemptions with no events of default occurring, we may consider lending beyond this maximum – please discuss this with us.
Facility Documents are valid for 28 days after the Date of Offer (or such further period, if any, as is agreed by the Lender).
There are a number of fees charged in connection with a bridging/refurbishment loan which are all paid by the borrower these include;
- valuation fee
- Project Monitoring Surveyor fee
Deducted from the loan;
- set up fee
- Asset Manager fee
- Mint Property Finance solicitors fee
- TT fee
- arrangement fee
- exit fee if applied
- broker fee if charged by your broker
- retention/development admin fee where the release of funds is made after the first release
First Time Buyer
First Time Buyers considered when they apply with an existing property owner or when they already own a Buy to Let property
First Time Landlord
We will consider lending to first time landlords.
On flats with an external wall system (cladding), the Valuer/Solicitor will require sight of a valid and satisfactory EWS1 certificate.
Ex local Authority Flats within the M25: We lend on these ex local authority flats on the same terms and conditions as for privately built flats.
Ex local Authority Flats outside the M25: We will usually restrict the Loan to Value for these properties to 65%, although we have the ability to exceed this on a case-by-case basis and where we consider that a compelling case to lend exists.
Foreign Nationals (Individuals)
We will lend to foreign nationals (individuals). Enhanced underwriting will apply.
The proposed borrower must have an ongoing relationship with their solicitor (which includes at least one previous transaction). We will not usually lend to foreign nationals who have only recently instructed their solicitor for the first time.
Where the deposit is provided by way of gift, a donor deed must be provided (a template will be available from our solicitors during the application process).
We have the capacity to structure our loans on a case by case basis. In addition, we can provide bespoke pricing.
This will be determined by the underwriting team, who will consider a range of factors.
Help to Buy
We do not lend under the Help to Buy scheme.
HMO (House in Multiple Occupation)
- The applicant(s) will usually be expected to own one or more HMOs, owned for at least 12 months.
- Minimum valuations: £250,000 London (within M25) £150,000 other locations.
- Maximum number of beds; 6.
- Licensed (or in the case of refurbishment HMO, application submitted).
We will consider HMO applications which do not meet these parameters, where a persuasive case can be made for lending.
HMO’s that are already successfully trading may be valued on an investment basis. Properties which are empty will be valued by reference to GDV but we may elect to use a bricks and mortar figure.
Income (Minimum Income)
We do not set a minimum income for applications.
Income Coverage Ratio (Buy to Let)
We do not set a minimum Income Coverage Ratio (ICR) for BTL lending, but our underwriters will consider the ICR with regards to the proposed exist strategy. Where exit is by way of a sale into the investor market, or by re-mortgage to a term lender on an investment basis, it will be important to ascertain whether there is a realistic prospect of the security being attractive to term lenders at the maximum normal LTVs for that type of lending.
Individual Voluntary Arrangements (IVAs)
We do not lend to applicants who are currently in an IVA.
For those who have ended the IVA, we have no minimum qualifying period where the exit is by way of sale. Where exit will be by way of refinance, we will not lend until 3 years have elapsed since the IVA was completed.
See “Repayment Methods”.
We accept business introduced via intermediaries. New intermediaries should contact our sales team in the first instance who will outline the process for registering, together with the criteria which applies.
We require that brokers have the relevant FCA Credit Broking Permissions.
The Lenders’ interest is to be noted on the insurance policy or automatically noted as mortgagee.
We will consider applications from applicants whose income is partially or wholly derived from investments. Proof of the underlying investment and a track record of drawings will be required in support of the application.
Know Your Customer (KYC)
The following items will be required to meet the firm’s KYC requirements:
- A completed and signed application form from all Borrowers and Guarantors.
- A successful electronic ID verification.
- Where electronic ID is unsuccessful we will require two x proof of address and one form of current photographic certified ID.
- 3 months bank statements
- Credit File/Credit Report
We do not usually lend on land where we are not also funding the development works.
We do not generally undertake landlord referencing but reserve the right to do so.
We will always require sight of the leasehold pack.
We will ordinarily expect that leasehold properties have at least 60 years remaining on the lease. By exception, we may agree to lend against security with an unexpired lease term of less than 60 years. Where this is agreed, we will require:
- Confirmation that the valuer has valued the security based on the impaired term, and
- The value of the security if the term is extended to at least 99 years, and
- If the Borrower(s) owns both the Freehold and Leasehold a charge is to be executed over both when possible, and
- If a purchase, confirmation that the vendor has commenced extension proceedings to such extent that it will be possible for our client to be able to immediately continue the lease extension process following purchase.
- If purchasing a share of a freehold, signed and dated stock transfer form.
We may seek to reflect the impaired marketability via the pricing and/or terms and conditions of the proposed deal.
The applicants will be responsible for meeting the costs of any legal work undertaken relating to their loan, including redemption.
Legal Representation – Guarantors
Guarantors and borrowers will ordinarily be represented by different law firms. With our agreement, it may occasionally be acceptable to allow different partners within the same firm to act.
We lend throughout mainland England, Wales and Scotland. We also lend on the Isle of Wight.
Let to Buy
Where an applicant has previously engaged in let to buy activities, care will be taken to ensure that the subject property is not going to be utilised as the principle domestic residence of the applicant(s).
Light Refurbishment Works
Generally applied to scenarios where the development component is <£50,000, and does not require any planning or structural works. Works may be overseen by our Asset Manager and photographic evidence may be required to monitor works.
We will consider lending for any legal business purpose.
Loans over £500,000 or 70% LTV
We expect that the borrower will own their own home or own at least one UK property.
Maximum Loan Size
£3m for all loans other than commercial (£1m)
Larger amounts may be agreed by exception and subject to satisfactory enhanced scrutiny.
Where works may require planning permission or permitted development rights and no more than one property is being constructed from the ground up or structural works are being carried out. Building Control sign off will be required and there may be a build contract. Works will require monitoring by a Project Monitoring Surveyor appointed by us.
Minimum Loan Size
Our minimum loan size is £75,000.
We provide finance for new build development projects
Number of Applicants
The maximum number of borrowers on any one individual loan is four
- We will instruct a law firm, qualified in the jurisdiction of the Borrower, to provide a Legal Opinion Letter.
- Law firm to hold/provide evidence of their Professional Indemnity Insurance.
- Offshore companies must be registered with Companies House and have an Overseas Entity ID number.
Overseas Personal Applicants
We will consider applications from overseas applicants.
For applicants who reside in the EEA (European Economic Area) we will require bank statements for a three-month period. For applicants who reside outside the EEA, we will require bank statements for a six-month period.
Our loans are not portable. We are happy to consider a new loan for existing borrowers, subject to a new appraisal of their circumstances. Different terms and conditions may apply.
Where the applicant has a background portfolio, we reserve the right to carry out an assessment of the portfolio to ensure that this is not placing an unreasonable financial strain on the applicants.
Portfolio Management/Post Completion Matters
Immediately prior to draw-down, a Mint Property Finance representative will hold a pre-completion conversation with the applicant(s). Draw-down will not occur until this call has taken place.
The loan will be managed and monitored by a Portfolio Manager following drawdown. The borrower is expected to positively interact with their Portfolio Manager on a regular basis.
We will consider lending in a private sale scenario. This must be disclosed to us at the outset, and the valuer and the solicitor must be made aware of this. All transactions must be at arms length.
We have a suite of products details of which can be found at www.mintpropertyfinance.co.uk/products
We provide business loans to property developers.
Refurbishment of Properties
We provide funding for refurbishment of properties and will require the following:
- Schedule of Works and Milestones including costing will be required to contain a refurbishment/development timeline and cash flow.
- Where the Borrower is self-funding 100% of the build costs to finish the project, we will require evidence that the Borrower has the funds available to meet these costs and from their own resources.
- Dependent on the works carried out we need to have sight and satisfaction of the Contractor/contract being used including Contractor CV.
- Loans requiring monitoring are subject to;
- our appointed Project Monitoring Surveyor providing a satisfactory initial appraisal of the project.
- sight and satisfaction of the Building Warranty e.g. NHBC warranty.
- sight and satisfaction of any relevant planning requirements including approved plans and relevant investigation / site reports.
- We will not ordinarily fund beyond the build of 4 detached units and/or 8 flats per development (but may agree more than this on a case-by-case basis).
Where we undertake a re-bridge, we expect that the risk will be improved relative to the original loan from the previous provider of finance. Ordinarily this will mean that the loan balance will not increase, but where risk can be reduced by other changes to parameters, it may be permissible to increase the overall indebtedness.
Although the position will be expected to be improved to allow a re-bridge to take-place, we will generally match or increase the pricing relative to the original pricing, which is reflective of the fact that typically re-bridges contain an additional component of risk.
Release of Security
We do not usually permit partial releases of security. We may consider partial release of security where the exit necessitates sales of units in a development maintaining or improving our LTV coverage.
We will require evidence any rental income received in support of a loan application such as;
- bank statements showing income received
- Rent book if appropriate
- tenancy deposit confirmation
All of our lending is interest only. Amortisation lending is not undertaken.
Loans will be:
- Interest deducted on completion from the agreed advance amount, or
- Serviced monthly (with payments being made on an Interest Only basis)
This will be confirmed within the Facility Document.
NB Interest will not be rolled up and added to the agreed advance and then deducted. E.g. if a 70% LTV loan is agreed then the interest will be deducted from this amount.
We will consider applications where the applicant has been repossessed. Refer to underwriter.
We will consider properties with restricted covenants but may seek to address any impact on marketability via pricing and LTV restrictions. Please contact us to discuss the details.
We may consider a second charge behind an existing bridging loan with another lender or where our security is not the method of exit providing:
- The primary lender is a member of UK Finance (Replaced CML).
- The existing 1st charge has a minimum of 5 years remaining.
- Evidence of 1st charge conduct is provided.
Section 106 Agreements
There are a variety of reasons why a Section 106 agreement might be in force. It will not always be identifiable at underwriting stage but where it is, the impact will be considered, and the valuer will be informed.
The conveyancer should ascertain any S106 implications and advise the firm. Where information is provided, this should be reviewed.
Secured Loan Arrears/Mortgage Arrears
Applicants should not be in arrears on secured borrowing at the point of application. By exception, we may consider applications from applicants who are in arears. Cases with a compelling rationale and a satisfactory explanation should be referred to our underwriters. This may affect the advertised rate.
Security Documents – Execution
All security documents must be executed in the presence of the solicitor acting in the transaction.
We provide funding to self-employed people. Proof of income will be required either by way of accountant-prepared accounts or by way of SA302s. Where information comes via an accountant, we will expect the accountant to hold relevant professional qualifications.
Semi-commercial properties are defined as properties that are mixed use i.e. a combination of residential and commercial.
Separate Legal Representation
We require separate legal representation in all lending transactions. We operate a small panel of solicitors who will act for us and the applicants must instruct solicitors of their own choice to represent their interests.
Ordinarily the solicitors acting for the applicant will be expected to be situated in close geographic proximity to the applicant (within a radius of 25 miles) or be able to demonstrate a historic transactional relationship with them (i.e. it won’t be acceptable for the proposed transaction to be the first time that the solicitors have acted for the clients).
We require that the firm acting for the applicant will have a minimum of two SRA registered solicitors within the firm.
Where security is being provided by a third party, the third party must be represented by a different firm to the firm representing the applicants.
Source of Deposit
Our solicitor will be required to see evidence and source of the deposit monies.
We require sight of any tenancy agreement (or lease) which applies to the security and evidence of rental income.
Term – Minimum and Maximum
We have no minimum term.
The maximum for Standard Bridging loans and Light Works loans is 12 months. The maximum for our Medium and Heavy loans is 18 months.
Third Party Charges
We may consider 3rd party charges provided that the chargor is:
- Separately advised and represented.
- A guarantor to the loan.
- Where appropriate, a Director/Shareholder in the Limited Company borrower – We must be satisfied that the 3rd party chargor is benefitting from the loan.
We will consider applicants whose main income is trust income. Proof will be required.
- Mortgage Brokers/Intermediaries or those individuals connected to corporate entities.
- Back- to- back transactions (We may consider these where a strong rationale exists, and subject to enhanced due diligence).
- Individuals who have been convicted or charged with any offence, other than for driving offences (we may consider applications where the conviction is spent).
- Individuals who have been disqualified by a court from acting as a company director.
- Individuals who have been made bankrupt or been the subject of an IVA (potentially acceptable if the exit is a sale).
- Individuals who have been subject to any regulatory investigation or sanction.
- Non-arm’s length transactions.
- Options unless registered at Land Registry.
- Powers of Attorney.
- Sale and leasebacks.
- Charities (We may occasionally consider registered charities at a low loan to value, and where it can be satisfied that no reputational risk exists).
- Social/religious organisations/leaders.
- A customer or guarantor whose previous financial track record or personal background is (in our opinion) questionable.
Unacceptable Property Type/Security
We will not accept the following types of security (unless additional security is provided, and that additional security is the primary security for the loan):
- Active religious buildings.
- Any property of modern method construction and Easiform construction (unless our valuer can state that there is a ready re-sale market with normal demand existing, and that there is a plentiful supply of mortgage lenders who will lend against it).
- Trading care/nursing homes.
- Mobile home/caravan or house boat.
- Contaminated land.
- Equestrian centres.
- Sports stadia.
- Golf clubs & leisure parks.
- Petrol stations.
- Trading pubs, hotels and B&Bs.
- Grade I listed properties.
- Kennels & catteries without onsite residential accommodation.
- Land – where We will not be funding the development works
- Live/Operational work units (i.e. used as living quarters and work accommodation).
- Properties in areas affected by landslip or heave.
- Properties occupied by family members or related parties of individual Customers or regulated tenancies (this may be acceptable if our loan is a 2nd Charge).
- Properties when planning permission is required and will have less than 1 year before expiration.
- Properties with agricultural classification.
- Properties with Japanese Knotweed unless Certificate of Treatment is provided.
- Property affected by overriding interest.
- Property identified as having onerous restrictions or covenants.
- Property outside mainland England, Wales and Scotland.
- Property with restrictions regarding occupancy.
- Residential and commercial property with protected tenants.
- Unlicensed housing of multiple occupancy (unless there is a licensing application pending, or the security does not need to be licensed according to the requirements of the local authority in which the property is situated).
- Unregistered land.
- Properties where the Energy Performance Certificate rating is category F or G, unless the purpose of the loan is to improve the property so that a better rating can be obtained.
- Commonhold security property.
In addition to the above, we will ordinarily not lend on the following (but may on occasion consider it):
- Concrete construction (e.g. high alumina cement construction), timber or steel frame construction (except new builds).
- Industrial premises (including warehouse units).
- Land without planning.
- Properties situated near pylons, railway tracks or landfill sites.
- Properties within influencing distance of any significant factor that would have a negative impact.
- Properties less than 10 years old without guarantees, certificates, or appropriate insurance.
- Single purpose commercial property with limited marketability.
- Freehold flats cannot be considered (unless conversion to an acceptable leasehold will be undertaken simultaneously with completion of our loan).
- We will require either a AVM or a physical valuation of the property which will be a valuer from our panel. The applicant will be responsible for meeting the costs and fees in respect of this.
- Where an AVM is used a minimum confidence level of 5 must be achieved.
- Valuers will always be instructed by us. It will not be acceptable to rely upon a valuation which has been instructed by a third party.
- The Loan to Value will be assessed against the reported 180-day vacant possession value with no new build premium.
- Where the borrowing is £2m or greater (or is to fund a completed development) we reserve the right to acquire two valuations. Where two valuations of differing values are received, we will ordinarily take an average of the two.
- A valuation is valid for 3 months, after which it must be refreshed (at the borrower’s expense) before (additional) monies can be lent against it. Where a refreshment is needed, this will be via a communication with the valuer, who will be asked to confirm in writing that the report may be relied upon for a further period (which must be specified).
- We require that comparables will always be provided with each valuation. The valuer will be required to provide these in accordance with any Red Book requirements.
- For flats on sizeable developments, we would ordinarily expect that at least one comparable relates to the same development as the proposed security.
- We anticipate that comparables will ordinarily relate to recent transactions (i.e. not properties still being marketed) and that they will be located within a reasonable distance of the property. Only valuations of properties which are highly unusual should rely on comparables from further away.