Buy to Let Criteria

Applicant Details

Minimum Age 25
Maximum Age The loan must be repaid before the oldest applicant's 85th birthday.
Maximum Number of Applicants 2
Minimum Income £18,000 per application. No foreign currency income is accepted and rental income cannot be the principal income source. Rental income from the security property must also be excluded.

Credit Criteria


There is no maximum value of CCJs and Defaults. Please see the current Product Guide.

Unsecured Arrears

Fixed term credit agreements and loans:

Applicant(s) must have paid the last 12 months payments.

Revolving credit, mobile phones and utility bills:

Arrears in the last 12 months will be considered.

Bankruptcy Discharged > 6 years ago.
IVA Discharged > 6 years ago
Repossession None in the last 6 years.
Debt management

None current and none in the last 12 months


Non-UK Citizens

Applicants who are non-UK citizens must have been permanently resident in the UK for the past three years and must have indefinite leave to remain in the UK and be a UK tax payer.

Applicants residing in the Isle of Man and Channel Islands are not acceptable.

Diplomatic Immunity Not accepted

Employment Status


Minimum of 6 months in current job and not in probation.

Evidence of employment history is required to cover the last 12 months.

Applications will be accepted for contract workers, provided they have been in employment with the same employer for the last 12 months. Confirmation must also be provided that the contract will be ongoing and renewed.

Directors with a shareholding of more than 25% will also be classified as self employed.

Self Employed The applicant(s) must have been in their current business for a minimum of 12 months.



Minimum income is £18,000 per application (no foreign currency).

Acceptable Income:

  • Basic pay.
  • Car allowance.
  • Weekly & monthly bonuses
  • 50% of quarterly & annual bonuses if confirmed as regular (2 years payments).
  • 2nd job – min 6 months in role.
  • State pension.
  • Private pension.
  • Maintenance.
  • Child benefit, Working and/or Child Tax Credits.
  • Disablement living allowance on behalf of a child under 16; War Disablement Pension; Armed Forces Compensation Scheme.
Self Employed

Min income is £18,000 per application (no foreign currency).

Acceptable Income:

For Sole Trader/Partnerships:
Minimum of 1 year's accounts where trading period is less than 2 years, otherwise 2 years' accounts. 3 months' current and business account bank statements.

SA302s - as long as they are supported by the 3 months current and business bank account statements.

For Company Director:
Minimum of 1 year's accounts where trading period is less than 2 years, otherwise 2 years' accounts. 3 months' current and business account bank statements.

Loan Details

Loan size

Minimum £25,001.

Maximum £1 million.

Loan Term

Minimum 5 years.

Maximum 35 years.

Portfolio Size The maximum portfolio of BTL or residential loans per applicant(s) held at any one time with Pepper, is limited to a maximum of 3. This is per individual and will include any joint or limited company loans held that the applicants are party to.
Remortgage Applicants We will consider remortgage applications where the applicant has been the registered owner for the last 6 months.

Capital & interest.

Interest only.

Deposit Details

Evidence of Deposit

Evidence of the source of deposit for all cases.

Gifted Deposit

Not accepted.

Property Criteria

Minimum Property Value £70,000
Locations England & Wales
Tenancy Agreement Properties in England and Wales must be let under a single assured shorthold tenancy or a common law tenancy (i.e. a company let or where the annual rent is greater than £100,000). Rental guarantee schemes and student lets are not acceptable. The standard length for assured short-hold tenancies is 6 – 12 months.
Acceptable Property

Houses, private and ex local authority or social housing.

Flats, private only.

Unacceptable Property


  • New Build Properties without suitable warranty.
  • Properties suffering on-going structural movement or insurance claims.
  • Grade I & Grade II listed properties.
  • Back to back / Cluster Homes.
  • Properties located within 20 metres of a mine entry/feature.
  • Properties within 100 metres of above ground high voltage electrical supply apparatus (excluding small substations).
  • Properties subject to Compulsory Purchase Orders.
  • Large Flying Freeholds (>20% of floor area).
  • Japanese Knotweed located within or immediately adjacent to the site, defined as category 4, 3 or 2 in RICS paper IP 27/2012.
  • Properties without an internal WC, bathroom or kitchen.
  • Properties subject to any onerous occupancy restrictions including agricultural restrictions.
  • Shared Ownership/Shared Equity schemes (only acceptable if applicant will own 100% of the interest on completion).
  • Properties subject to enforcement notices.
  • Crofting properties/land.
  • Self-build properties.
  • Properties with a commercial element.
  • Non standard construction.
  • HMOs.

Flats & Maisonettes

  • Flats in Local Authority or ex Local Authority owned blocks.
  • New Build Flats/Maisonettes.
  • Flats with a gross external floor area <35m2.
  • Flats above commercial premises.
  • Studio flats.
  • Freehold flats


Freehold Houses accepted
Leasehold The lease must have a minimum unexpired term of 85 years at the time of application.
Commonhold Not accepted.

Valuation Fees

Purchase Price / Estimated Value Valuation Fee Inclusive of VAT
Less than £100,000 £320
£100,001 - £150,000 £350
£150,001 - £200,000 £400
£200,001 - £250,000 £450
£250,001 - £300,000 £480
£300,001 - £350,000 £500
£350,001 - £400,000 £550
£400,001 - £500,000 £575
£500,001 - £600,000 £600
£600,001 - £700,000 £700
£700,001 - £800,000 £750
£800,001 - £900,000 £800
£900,001 - £1 million £850
More than £1 million By arrangement

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