Lending Criteria – Property Development Loan

BlueZest Lending Criteria – for Intermediaries

To be simple and clear, please find below a guideline of our lending criteria. This allows you to see the requirements for the products we have on offer and any particular specifics you may wish to know. Please note; this is not our full mortgage lending policy.

  • Value of property

    Value of property for transfer to Buy-To-Let mortgage,  LTV at maturity of loan should be less than 75%

  • Rental coverage

    Estimated rental coverage at development completion being within BlueZest’s Buy to Let policy criteria

  • Number of applicants

    Maximum 4 applicants – all Directors must be party to the loan agreement

  • Applicant residency

    All applicants must reside within the UK and have done so for the last 3 years with indefinite leave to remain, holding a UK bank account

  • Party to the mortgage

    All registered owners of the secured property must be party to the mortgage

  • Convictions

    Applicants must not have any unspent convictions for offences, other than minor traffic offences

Credit History
  • Must have
    • Applicants must be creditworthy and have a good track of servicing loans/credit agreements as evidenced at a Credit Reference Agency
    • Additionally, applicants must not be overcommitted on other secured and unsecured borrowings
  • Declined if

    Mortgage applications will be declined if any applicant has had:

    • Any previous property repossessed
    • A County Court Judgment (CCJ), satisfied or unsatisfied
    • An insolvency (including those pending)
    • Any Debt Management Plan in place
    • Any loan defaults  in the last 36 months
    • Any mortgage arrears in the last 12 months
    • Any “pay day” or “doorstep” loans in the last 36 months
  • Employment

    The company must have been continuously trading for at least 2 years (and be able to provide accounts/tax returns for this period)

  • Income

    The main applicant should have a minimum gross basic annual income (including dividends and pensions) of £25,000

Loan Purpose
  • Capital raising

    Capital raising for purchase and/or development of a Buy to Let property

Acceptable Properties
  • Acceptable Properties
    • Properties must be located in England or Wales
    • The property should have a minimum value of £75,000
    • New build properties are acceptable
    • Freehold flats are not acceptable
    • A minimum of 45 years must be remaining on the lease after the end of the mortgage termand/or 55 years at the beginning
    • All properties must be of standard construction
    • Properties used as loan security must be deemed suitable for residential occupation/letting post development by the valuer
    • Property must be deemed to have good marketability by the valuer
    • Property must have buildings insurance on normal terms
    • Property must not have any agricultural restrictions
    • Property must not cover more than 10 acres
    • Farms and smallholdings are not acceptable
    • Common-hold properties are not acceptable
    • Ex-Local Authority flats/maisonettes with a value of less than £250,000 are not acceptable
    • Flats above 4 storeys must have a value of at least £300,000
    • Property must not be subject to any constraint preventing occupation for 52 weeks a year
    • Shared ownership properties are not permitted
  • The following will not be considered:
    • ­Properties affected by HS2
    • Property where material environmental hazards are present
    • Properties affected by Japanese knotweed
    • Properties affected by overriding interest
    • Mobile homes and houseboats
    • Grade I (England & Wales) listed buildings
    • Less than 10 years old without NHBC/Zurich Municipal guarantees or architects certificate
    • HMOs
    • Unlicensed Multiple Occupancy
    • Housing – e.g. student residence
    • Flats directly above food premises

Apply online

Start your BlueZest application on your mobile, tablet or PC, whichever you prefer. For added flexibility you can also switch between devices at any stage.

You do not have to complete your application in one go; you can stop at any time. The information entered will be automatically saved, so you can resume and complete your application whenever convenient.

Get Started