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Newcastle BS removes minimum income requirement for BTL mortgages

  • 09/05/2022
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Newcastle BS removes minimum income requirement for BTL mortgages
Newcastle Building Society has removed the minimum income criteria for its buy-to-let (BTL) mortgages to widen access to landlords with “lower or non-traditional incomes”.

The change came into effect from 4 May and means borrowers will no longer need to show £25,000 minimum income per year as a sole borrower, or £30,000 as a joint borrower, to access its BTL mortgages.

The mutual said that affordability would be assessed on the interest coverage ratio (ICR). Borrowers need to be in receipt of employed, self-employed or pension income.

Stuart Miller (pictured), chief customer officer at Newcastle Building Society, said: “With the primary driver for affordability being rent generated on the property itself, additional affordability assessments such as having the minimum income criteria in place can prove unnecessary.

“Removing this requirement not only underlines our commitment to the BTL market by ensuring we continue to deliver a competitive and flexible offering, but also helps to broaden the accessibility of Newcastle Intermediaries’ proposition to brokers and their clients.”

Danny Belton, head of lender relationships at Legal & General, said: “It’s encouraging to see Newcastle Intermediaries take a common-sense approach to lending and ease the barrier to entry for BTL borrowers through the removal of its minimum income requirements.

“This will prove a welcome change for customers who will now benefit from a simplified mortgage application process.”

Earlier this year the mutual integrated with Legal & General’s mortgage criteria support service, Smartrfit, which has allowed the mutual to provide more accurate data to brokers and update them with latest criteria and products.

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