Kent Reliance has launched a new income backed buy-to-let proposition.
The lender, which is part of OneSavings Bank, will now take a broader view of customer affordability using earned income to supplement the Interest Coverage Ratio (ICR) for buy-to-let loans, where the rental property yield in itself does not meet minimum requirements.
Specifically tailored for non-portfolio landlords looking to borrow through a limited company arrangement or on an individual basis, the new proposition is supported with an online calculator to help assess and confirm eligibility.
The lender believes it is particularly useful for high earning individuals with low residential leverage and high yielding individual or limited company or non-portfolio landlords, where the subject property is low yielding.
Adrian Moloney, sales director at OneSavings Bank, said: “This new, broader approach to buy-to-let affordability will provide additional flexibility to allow earned income to form part of the affordability assessment for a buy-to-let application.
“High property values, particularly within London and the South East, can result in lower yields and as a result, some applicants may be refused lending, even on good quality properties. We’re looking to fix that.
“To support this product, we’ve also updated our buy-to-let calculator so brokers can immediately see if a case fits the income backed criteria prior to submission, thereby simplifying the process and enabling a faster turnaround.”