A number of buy-to-let mortgage providers are dropping minimum income requirements to attract silver landlords to the market
Accord Mortgages, the buy-to-let brand of Yorkshire Building Society, is one such lender to do so, while NatWest similarly eased its rules earlier this year.
Previously it was standard practice for buy-to-let applicants to require a minimum income of £25,000.
Bank of Ireland, BM Solutions, Coventry Building Society and Foundation Home Loans are other lenders that don’t have minimum income requirements.
Chris Sykes, of mortgage broker Private Finance, said: “It is a welcome change for many. Those who treat buy-to-lets as their pension wouldn’t qualify for finance through Accord previously, but would now.”
Accord is also encouraging first-time landlords to apply, saying they should contact their business development manager for case-by-case treatment.
Nationally rents have risen by 7.9% in the past 12 months across the UK, while the city markets are rebounding after experiencing a lean period during the pandemic.
Buy-to-let investors can claim the best yields in the North West, while there’s also been talk of university cities like Leeds offering strong returns.
The supply of rental homes is lagging behind the long-term average by 43%, causing prices to rise but pushing short-term yields down.
Luke Spellman, a Coventry-based broker, told Financial Adviser: “I have personally found that BTL purchases have been relatively subdued over the last year in my area, as house prices have grown.
“I have also noted that more of my customers are looking at properties further afield. In particular, in the north of England where property prices are lower.”