Fleet Mortgages has announced a series of improvements to the criteria for its buy-to-let offering, designed to improve landlord affordability for borrowers, and to reflect real-world conditions and wider demand for property.
The specialist lender said the changes focus on removing unnecessary barriers for advisers’ clients, while maintaining responsible lending standards.
One of the most significant changes is the removal of Fleet’s minimum income requirement for applicants. Landlords are no longer required to meet a set threshold for earned income, although income must still be proven.
In addition, Fleet has simplified income verification requirements, reducing the number of documents required to file a case. It now allows employees to provide their most recent pay slip, retired applicants their latest pension statement and self-employed applicants their latest tax calculation, calculation or tax return.
The required trading history for self-employed persons and contractors 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 revenue streams.
Fleet has also extended the maximum mortgage term from 30 to 35 years.
On the real estate side, Fleet has lifted the height restriction on condominiums, opening up lending opportunities for a wider range of high-rise projects.
The lender has also increased the maximum LTV on new-build apartments from 70% to 75%, giving landlords more flexibility when purchasing or refinancing newer properties.
Further updates include changes to acceptable construction types and ownership features of condominiums, including the removal of the age restriction for flat roofs and steel or concrete frame blocks, and the acceptance of condominiums with swimming pools.
Fleet Chief Commercial Officer Steve Cox commented: “These changes are the result of detailed discussions with agents, networks and clubs about how our criteria could reflect the realities of today’s buy-to-let market, and the wants and needs of landlords. That has clearly changed in a number of areas, and we wanted our criteria to reflect that in several different areas.”