Barclays will now allow any shortfall in the rental income used to calculate buy-to-let affordability to be met by the applicant’s disposable income.
This follows a pilot conducted last year.
Under the new approach, customers will be required to complete a full income and expenditure assessment involving disclosure of the following:
- Net Income
- Commitments and dependents
- All residential mortgages (including Permissions To Lets)
- The total of all buy-to-let mortgages outstanding and the total rent received
- The application does not go into retirement and there are no foreseeable changes to their income
Andy Gray, Barclays’ managing director of mortgages, said: “There are only a handful lenders that allow any shortfall in the rental income used to calculate affordability to be met by the applicant’s disposable income.
“Barclays’ new policy provides a greater opportunity for those planning for their financial future and choosing to invest in rental properties to help support their longer term goals of, for example, paying for their children’s university fees or enhancing their lifestyle in retirement.”