Customers with excess income will now be able to bridge the gap between the income received through their property and the income they need to pass affordability tests on loans.
The product is designed to assist clients who find themselves excluded from the BTL market by the lending policies of prime lenders, said Precise Mortgages.
Brokers will be given the option to provide their customer’s income details via Precise Mortgages’ online portal, which will present the possible loans based both on an interest cover ratio (ICR) and a combined ICR and income basis.
Purchase and remortgage
There are no restrictions to product selection, and the income supported BTL is available for both purchase and remortgages – including capital raising to accommodate customers who prefer not to form a limited company.
Alan Cleary, managing director of Precise Mortgages, (pictured) said: “We believe that income supported BTL will be a real game changer, particularly where customers are struggling to get the loan size they need.
“We have built this into our online systems so the sales process should be very slick,” he added.
Danny Belton, head of lender relationships at L&G Mortgage Club, commented: “After what has been a tough year for the BTL market, it’s great to see a lender such as Precise Mortgages recognising the challenges in the sector, and providing solutions for both mortgage intermediaries and their clients.”
Full details on the upcoming BTL products will be available from 5 December.