Back in February our blog included a story about Barclays’ plans to let landlords cover rental shortfalls with personal income. We can now update you on recent developments: the bank has just scrapped its old B2L mortgages to make way for this new approach.
Now, Barclays puts landlords through an affordability assessment to find out whether rental will be met. Where there’s a shortfall, landlords can still potentially get a mortgage if they have enough disposable income to plug the gap. If applications were not completed by July 24th, landlords need to re-submit under this new assessment criteria.
Quoted on the Mortgage Strategy website recently, Barclays said: “We have changed our lending criteria so we now conduct a personal affordability check for all applications. This not only enables us to be confident as a lender that we are lending responsibly but also allows prospective buy-to-let customers to use personal income to cover any shortfalls where our 125 per cent rental cover calculation is not met.”
This is a positive step forward, creating new opportunities for landlords who have sufficient personal funds.
If you’d like advice on this new B2L market development, our mortgage team is happy to help. Get in touch today for a chat.