Income Assessment

Rental income

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

Where the Buy to Let exposure with Nationwide Group is over £1m (before or after new loan) the new property application will be stressed at 5.99% or product pay rate, whichever is higher (as per the table).

For remortgages, we will 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) is not accepted.

Application Type Product Term < 5 Years Fixed Rate Product*
>= 5 Years
<= 65% LTV > 65% LTV
Purchase 5.50%
(or pay rate + 2% if higher)
(With capital raising)
Further Advance
(Without capital raising)*
4.99% 5.50%

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

Personal income

Proof of personal income may be requested to support an application and 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 is not available an accountant's reference can be accepted. Please contact us with accountants details in order for us to request.