Landlords could have a better shot at securing B2L loans if they can prove they can cover rental shortfalls with personal income. This may well increase opportunities for suitable landlords who want to invest in property as they plan for their future.
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.