BTL criteria changes - Improving what we do for our BTL brokers
You told us some areas of our criteria were causing you pain! So, we've been busy reviewing what we do and making changes. The result….we've opened up our criteria, improved our minimum income requirements and reduced offer turn around times.
We think the latest changes we've made will really make a difference to you and your clients:
- We've changed our Minimum income requirement to £25,000 per application. Previously, one applicant had to earn at least £25,000.
- We've reduced self-employed income evidence from 3 years to 2. (Where the net profits have declined over the 2 years we may ask for previous years evidence before making a decision.)
- We're making it clearer what documents we need to see for self employed applicants. (SA302 and tax overview is preferred, or we'll accept an Accounts reference where SA302 and tax overview are not available.)
- We're changing how we assess our contractor criteria so that it aligns with how we assess contractor income for residential lending.
And, if you missed it we recently introduced a 125% ICR for landlords who's total income is less than £45k and who are basic rate or 0% tax payers. And;
- Minimum age reduced from 25 to 18
- Maximum age at application increased from 70 to 75 (oldest applicant).
- Maximum age at term expiry increased from 75 to 85 (oldest applicant).
- Defined retirement age increased from 65 to 70 for employed applicants.
- And we'll accept state pension income to meet the minimum income requirement.
This all adds up to what we do best…helping you help more landlords