Landlords using personal income to secure buy-to-let mortgages
Earlier this year Barclays loosened its buy-to-let criteria in order to attract clients with more disposable income.
After increasing the rental calculation it uses to work out how much it will lend to landlords, the bank had to do something to help more landlords.
As a result of the change, it is offering something unusual to the market and Barclays says more wealthy landlords are using the bank to secure larger buy-to-let mortgages.
A spokesman for Barclays told Mortgage Solutions magazine: “The interplay of interest cover ratios, stress rates and rental yields can restrict maximum loan-to-values on some properties in desirable areas to as low as 40%.
“The lower the yield, the lower the maximum loan-to-vales (LTV) that can be made available. However, by using disposable income to bolster the rental income calculation for affordability, we can lend in those areas at LTVs up to 75%.”
For help to secure a buy-to-let mortgage using your income, call Trinity on 020 7016 0790.
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