Peer-to-peer platforms specialising in buy-to-let (BTL) loans could benefit from a new trend which has seen mortgage lenders relax their requirements for potential borrowers.
In recent weeks, NatWest and Accord Mortgages – part of Yorkshire Building Society – have removed the minimum income requirement for BTL customers. It is believed that more than a quarter of all mortgage lenders no longer require a minimum incomes for borrowers to qualify for a BTL mortgage.
This means that people on a lower income or fixed income may now invest in BTL properties, effectively increasing the number of BTL borrowers on the market and making the sector more popular with investors.
“Customers without obvious income but where rental income is enough to meet mortgage payments will have access to a wider range of buy-to-let mortgage lenders, and can shop around for a better deal, said Angus Stewart of buy-to-let broker Property Master.
BTL investors have been hit by a series of new expenses in recent years, including stamp duty payments and the end of a loophole that allowed landlords to deduct mortgage expenses from their rental income to reduce their tax bill.
However, there have been signs that the BTL investment market is bouncing back. According to recent data from Moneyfacts, by September 2021 there were 2,968 products on offer in the BTL sector, the highest number since October 2007.