Loughborough BS has brought about this change to widen its reach to landlords for both purchase and remortgage throughout England and Wales.
These mortgages are available to individuals over the age of 25 and the mortgage must end by the age of 70. The minimum income requirement is £25,000.
Whilst prospective landlords are required to have experience as a mortgagor, they can be a first-time landlord providing all other criteria are met.
Capital raising is accepted for property improvements and funding the deposit of a further property.
The lender will also accept capital raising for the repayment of a government Help to Buy equity loan where the borrower wishes to apply for a Let to Buy mortgage.
The interest coverage ratio is stressed on the product rate and must meet 130% of the monthly mortgage payment based on interest only.
This is based on the net rent receivable after deductions of the landlords’ costs and tax liabilities associated with the property.
Where the rental income is insufficient there is an option to include the applicants’ personal income.