Buy-to-let specialist lender, Fleet Mortgages, has announced a series of criteria enhancements across its buy-to-let range, aiming to focus on removing unnecessary barriers for advisers’ landlord borrower clients while maintaining responsible lending standards.
Among the headline changes is the removal of Fleet’s minimum income requirement for applicants. Landlords will no longer need to meet a set earned income threshold, although income will still need to be evidenced.
In addition, Fleet has simplified income verification requirements reducing the number of documents required to submit a case. It now allows employed applicants to provide their most recent payslip, retired applicants their latest pension statement, and self-employed applicants their latest tax computation, calculation or tax return.
For self-employed applicants and contractors, the required trading history has also been reduced from two years to one full tax year. Fleet said this change reflected the growing number of landlords operating through limited companies or with more recently-established income streams.
Fleet has also increased its maximum mortgage term from 30 to 35 years, a move designed to support affordability and improve cashflow flexibility.
On the property side, Fleet has removed the height restriction on blocks of flats, opening up lending opportunities on a wider range of high-rise developments.
The lender has also increased the maximum LTV on new-build flats from 70% to 75%, providing landlords with greater flexibility when purchasing or refinancing newer properties.
Further updates include changes to acceptable construction types and property features on blocks of flats, including the removal of the age restriction for flat roofs and steel or concrete frame blocks, and acceptance of blocks of flats with swimming pools.
“These changes are the result of detailed discussions with brokers, networks and clubs about how our criteria could reflect the realities of today’s buy-to-let market, and the wants and needs of landlord borrower clients," explained Fleet's chief commercial officer, Steve Cox. "That has clearly shifted in a number of areas, and we wanted our criteria to reflect that in multiple different areas."
He added, “We have focused on areas where adjustments can make a meaningful difference to advisers placing cases, whether that is removing the height restriction for blocks of flats, or increasing the maximum LTV on new-build flats, while also removing the minimum income requirement, reducing the length of self-employed and contractors’ working requirements to just one full tax year, extending mortgage terms to improve affordability, or widening our property appetite."
“At the same time, we have ensured appropriate lending safeguards remain in place. These series of important criteria changes offers a sensible evolution which will allow more landlord borrowers to access the finance they need via our range of excellently-priced products.”
