Income Assessment

Rental income

The gross rental income, confirmed by the valuer, must cover at least 145% (150% HMO) of the monthly mortgage interest payment.

A stress rate of 4.99% applies when:

  • a fixed rate product has a term of 5 or more years or;
  • the application is a remortgage of up to and equal to 65% LTV without capital raising

A stress rate of 5.50% or product pay rate if higher applies when the application:

  • is a remortgage without capital raising, over 65% LTV, and the product term is under 5 years

A stress rate of 5.50% or product pay rate +2% if higher applies when the application:

  • is a purchase, remortgage with capital raising or a further advance and the product term is under 5 years
Application Type Product Term under 5 Years Fixed Rates
5 Years and over*
65% LTV and lower over 65% LTV
Remortgage
(without capital raising)*
4.99% 5.50% 4.99%
All other application types 5.50% or product pay rate + 2% if higher

*The higher of stress rate or product pay rate (product pay rate +0.50% for variable products) will apply.

Additional Information

  • For applications where overall Buy to Let lending with the Nationwide Group is over £1m (before or after the new loan), a stress rate of 5.99% or product pay rate +2%, whichever is higher, will apply.
  • For remortgages, we’ll apply the lower of the current rent or estimated rental value as given by the valuer.
  • Rental income denominated in a currency other than pounds sterling (GBP) isn’t accepted.

Personal income

Whilst there is no minimum personal income requirement, proof of personal income may be requested to support an application. This will be used in conjunction with other information relating to the applicant and property, to validate that the Buy to Let loan will be used for its intended purpose.

We reserve the right to request proof of income on any case to support assessment of the application (e.g. high levels of unsecured debt, Nationwide Group BTL exposure over £1m).

Eligible income is defined as:

  • Gross earned income (excluding bonus, overtime and commission)
  • Pension income

Acceptable proof of income:

  • Self employed applicants: Latest SA302 (self assessment tax calculation form)*
  • Employed applicants: Latest payslip
  • Retired applicants: Latest payslip/pension statement

*if SA302 isn't available an accountant's reference can be accepted. Please contact us with the accountants details so we can request this.