Major lender Barclays will extend buy-to-let (BTL) remortgage and purchase financing to first-time buyers and non-owner occupiers from today.
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.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
