Barclays BTL mortgage calculation update – income can be used to cover rental shortfall.
Barclays has announced plans to allow landlords to use personal income to overcome issues where the lender’s rental cover calculation is not met.
Affordability assessments will be introduced on all buy to let mortgage applications. New applicants will be stressed tested against Barclays’ current rental cover calculation of 125% at a current stress rate of 5.79%.
Where the lender’s rental cover calculation is not met, applications will still be accepted if the applicant has a sufficient surplus of disposable income.
A spokesperson for the lender advised that the criteria change is to allow a personal affordability check to be carried out for all applications.
If you are looking to invest in property and are interested in reviewing products on offer call us at Deal Direct.
We are a fully qualified ‘independent’ mortgage broker with access to all buy to let products market-wide.
We have a great deal of experience in this sector and have successfully found highly competitive deals for our many clients.
While we are fully regulated to offer mortgage advice, we are not regulated by the FCA to offer financial advice. If you want to discuss the suitability of property as an investment you will need to contact an IFA.
Whether you are a first time landlord or existing property investor looking to extend their property portfolio, our highly qualified and impartial advisers are here to help.
NB: Not all BTL mortgages are regulated by the FCA.
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call us on 0800 048 8828.
