The property must be let to a tenant and not lived in by the borrower or a family member.
Barclays said: “This change offers an alternative way of helping first-time buyers get onto the property ladder. For example, a young professional currently working and renting in an area with higher than average house prices, such as London, might be looking to purchase a property to rent out as an investment in a more affordable part of the UK, without having to move themselves.”
The lender said there is no change to its existing BTL mortgage application process or criteria and affordability requirements.
However, it urged brokers to ensure the applicant’s residential status is input correctly on the ‘personal details page’ and rent payments are included under ‘other regular commitments.’
All changes will be applied to existing pipeline cases.
A Barclays spokesman said: “Barclays is a responsible lender and we’re always looking at ways to innovate and open up access to home buying. First-time buy-to-let will give someone who does not have a mortgage an opportunity to get onto the property ladder.”