Applications for a new B2L mortgage from Barclays will be assessed on net income, financial commitments, dependents, residential mortgages, B2L mortgages and rental income.
This is a great way for landlords to finance their B2L mortgage if they want a LTV ranging between 65% and 80%, and if they have a good personal income.
Although useful for some landlords, I’m not sure such products would work for people with larger portfolios, who want to reach the maximum LTV (approx. 80%) on the most of their properties. It could over-expose them.
But where this ‘top up’ mortgage could also help is in cases where borrowers want to move their residential mortgage to a B2L. The product could help them switch and possibly also secure a good interest rate.