LONDON, 28-1-2015 — /EuropaWire/ — From today (26 January), purchasing a Buy-To-Let property with Barclays is made more accessible for many would-be landlords thanks to the introduction of a new approach that allows personal income to be accepted when assessing Buy-To-Let affordability.
Following a successful pilot conducted last year, Barclays will now allow any shortfall in the rental income used to calculate affordability to be met by the applicant’s disposable income.Under the new approach, customers would be required to complete a full income and expenditure assessment involving disclosure of the following:
- Net Income
- Commitments and dependents
- All residential mortgages (including Permissions To Lets)
- The total of all Buy-To-Let mortgages outstanding and the total rent received
- The application does not go into retirement and there are no foreseeable changes to their income
The new policy will help individuals looking to realise their goal of supplementing their income or enhancing their capital growth plans by investing in a rental property.
Derram Attfield (42), a self-employed recruitment professional in London is one of the first to benefit from Barclays’ new policy.
“There’s no guarantee of a state pension being available when it comes to my retirement; and being self-employed I recognised the importance of having a good retirement plan in place. Barclays’ new policy has helped me to purchase a rental property and to maximise the opportunity of both the growth in equity in the flat, and the regular rental income, to support my pension plans.”
Andy Gray, Barclays Managing Director of Mortgages said: “There are only a handful lenders that allow any shortfall in the rental income used to calculate affordability to be met by the applicant’s disposable income. Barclays’ new policy provides a greater opportunity for those planning for their financial future and choosing to invest in rental properties to help support their longer term goals of, for example, paying for their childrens’ university fees or enhancing their lifestyle in retirement.”
Barclays is an international financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is to help people achieve their ambitions – in the right way.With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 135,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.For further information about Barclays, please visit our website www.barclays.com.