No Minimum Income Lenders

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    No Minimum Income Lenders

    Just doing a review of the market at the moment with a remortgage on the horizon .... can anyone add to the list below of lenders who currently have no minimum income requirement?:

    TMW
    BM Solutions
    Govida
    Leeds BS
    Vida
    Foundation homeloans

    Govida look a decent option now along with the top 2 but am I missing anyone that should be considered in peoples opinion?

    #2
    Hi JayDavys
    I will do research for you tomorrow however please delete BM , they have within their criteria a £30k minimum threshold.
    You can add Precise.
    If you have two or more BtL properties Axis Bank exercise flexibility. Kent Reliance also need adding.
    Once I have the data I will upload directly into the post for the benefit of all

    Comment


      #3
      Wow didn't realise BM were out the game! Thanks as ever LA

      Comment


        #4
        Just used BM's search function under Criteria and got the following LA:

        You searched for...

        Minimum Income Requirement

        Our Question

        What is your definition of income and what is required to evidence?

        Our answer

        For all applications, at least one of the applicants needs to be in receipt of earned income and/or pension income. There is no minimum income requirement.

        No mention of £30k minimum that I could find

        Comment


          #5
          I think the £30K minimum applies to portfolio landlords.

          ..But only if they have less than 10 properties (irrespective of if they are worth 20K or 10M)....and no more than 3 properties within the HBOS group...and not in a leap year...or during a full moon...or to people wearing red socks.

          If / when HBOS starts lending more rationally, I will be very wary about taking out loans with them.

          Comment


            #6
            Aldermore,Kensington,Shawbrook, Inrerbay,Saffron have no minimum but whatever is declared has to be proved, None can be regarded as Non Status Lenders. Each lender differentiates between those who are First time Investors or established investors.

            Pepper , Dudley , Bluestone, Together Mortgages accept a lower leg of income below the normal minimum of £25k.

            Back to BM, it is correct that the criteria makes no mention of a minimum incomehowever the Underwriter reservesthe rightto request fullevidence of income and from talking with my local BDM there is an unwritten rule to seek comfort of£30000 from all sources can be proved. Clearly seeking a loan as a First time landlord will not be as simple as that for someone with an established track record.

            Comment


              #7
              https://www.mortgagestrategy.co.uk/b...ding-approach/

              BM Solutions has laid out the details of how it will tackle portfolio buy-to-let underwriting when Prudential Regulation Authority brings in tougher underwriting standards from 30 September.

              The new changes will include accepting a maximum of ten mortgaged buy-to-let properties, and a maximum of three properties with Lloyds Banking Group.

              Landlords must have at least £30,000 earned taxable income per portfolio application.

              Comment


                #8
                Hi Boletus
                Thanks for posting the extract from this trade publication, after posting the above my shrinking grey cells reminded me that I had posted similar clarification of BM’s income criteria on the forum.

                The days of easy Underwriting from this type of lender has long since gone and their restrictions on a total of 10 BtL properties across all lenders makes them a less attractive proposition.

                Comment


                  #9
                  Here is the definitive criteria of BM Solutions and applies to anyone who owns 4 or more mortgaged BtL properties with an absolute maximum number of properties of 10 , be they in their personal name or corporate entity.

                  Key Criteria;

                  ● The applicant(s) must have no more than 10 mortgaged Buy to Let properties including the new application to BM Solutions
                  ● The client(s) must collectively have a minimum of £30,000 earned taxable income (per application). This does not apply to non- portfolio applications
                  ● The property portfolio must not exceed a maximum aggregate Loan to Value of 75%*
                  ● The property portfolio must meet a minimum aggregate rental coverage of 145% stressed at 5.5%*

                  * Based on the entire portfolio including the acquiring property and any unencumbered let property.

                  Hope this helps in understanding the lender better.


                  Comment

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