Barclays allowing landlords to use personal income to top up rental shortfalls

by Aaron Strutt

Jan 28 2015

Barclays has improved its lending criteria by allowing personal income to be used as part of a buy-to-let mortgage application.   

Last year the lender raised its buy-to-let mortgage rental calculation to 125% of 5.79% - making it nearly impossible for many landlords to secure a large enough mortgage.

To try and combat their previous policy tightening, Barclays will now assess buy-to-let affordability using a borrower’s personal income as well as the rental income generated from the property.

Aaron Strutt, product manager at Trinity Financial, says: "The London housing market is notorious for having expensive flats and houses that don’t generate enough rent for mortgage purposes. So this criteria change is positive particularly for wealthier borrowers with surplus income and lower loan-to-value residential mortgages. 

"There are a couple of other lenders with similar policies although one limits the income top up to first-time landlords and the other specialises in more high-end mortgages." 

If you would like help to secure a buy-to-let mortgage call Trinity Financial on 020 7016 0790.