Over the last 12 months, the dynamics of the lending market have changed for the standard and specialist buy to let sector. A number of lenders have now broadened their requirements for lending by allowing applications for Buy to let mortgages with no proof of income. They will also consider Buy to let mortgages with no minimum income.
We have 8 lenders on our panel who do not require a minimum income and 3 lenders who do not require proof of income.
This is a particularly beneficial change, for example, for professional landlords and other experienced property investors, who may have undertaken works on a property or employed other tax mitigation strategies to reduce their income. Or if a professional landlords who cannot meet the minimum income levels in 2 to 3 years of £25K to £40K per year. This is usually for very good reasons such as costs have been incurred improving the portfolio which resulted in a small loss, or the landlord has decided to take a repayment of a directors loan.
And the lenders have acknowledged that buy to let affordability is based on rental income and not personal income. This makes it more accessible to landlords.
Our panel of lenders will deal with mortgages for all types of properties. HMO’s, multi unit, as well as buy to let through limited companies or even off shore limited company buy to lets.
And at a time when the buy to let market is seeing a resurgence, this is good to know. But it’s always a good idea to speak to an experienced commercial mortgage advisor when it comes to discussing buy to let mortgages and they’ll ensure they find you the best products available. They can help you overcome some of the problems you may encounter and can assist you in selecting the best lender for you. BTL mortgages with no proof of income may not be possible for everyone’s circumstances.
In cases where no proof of income is required, the credit and applicant are very credit worthy. It is great to see more choice entering the market.
If you would like to discuss BTL mortgages where no proof of income is required.