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Tuesday, January 27, 2015

Barclays allow 'other incomes' for BTL affordability

Some pleasant news from Barclays on their BTL lending.

The bank will now allow landlords to use 'other incomes' on their mortgage application when a property falls short on the affordability calculation for the rent / mortgage repayments. 

Barclays will now allow an BTL mortgage applicant to use proven disposable income to improve their affordability calculation. 

To qualify, landlords need to list - net income, commitments and dependents, details of their existing residential mortgage, and a breakdown of their BTL portfolio, including tenancies, rents, and all outstanding BTL mortgages. 

Barclays' managing director of mortgages, Andy Gray said: 

"There are only a handful lenders that allow any shortfall in the rental income used to calculate affordability to be met by the applicant's disposable income.

Barclays' new policy provides a greater opportunity for those planning for their financial future and choosing to invest in rental properties to help support their longer-term goals of, for example, paying for their childrens' university fees or enhancing their lifestyle in retirement."

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