It aims to broaden the options available to landlords on the BTL market
Newcastle Intermediaries has removed the minimum income criteria on its buy-to-let mortgage products to broaden its appeal with landlords who have lower or non-traditional incomes.
Borrowers no longer need to meet the £25,000 pa (£30,000 joint) minimum income requirement on Newcastle Intermediaries’ BTL mortgage products, with affordability instead being assessed on the Interest Coverage Ratio (ICR).
The removal of the BTL minimum income requirement and assessment of affordability via ICR tests will broaden the options available to landlords on the BTL market. Borrowers must be in receipt of an employed, self-employed, or pension income.
Earlier in 2022, Newcastle Intermediaries integrated with SmartrFit, Legal & General’s mortgage criteria support service. The successful launch on to the SmartrFit platform has enabled Newcastle Intermediaries to provide more accurate data to brokers, updating them more efficiently with its latest criteria and products on offer, including its BTL product range.
Danny Belton, head of lender relationships at Legal & General, said that Newcastle Intermediaries took a common-sense approach to lending and eased 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,” he added.
Stuart Miller (pictured), chief customer officer at Newcastle Building Society, pointed out that 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,” Miller continued.