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Income requirements | Accord Removes Minimum Income On BTL

Income Requirements

Income requirements


Accord Mortgages has made a significant move by removing the minimum income requirement for Buy-to-Let (BTL) mortgage applicants. This strategic decision responds to the evolving needs of property investors and landlords in the ever-changing real estate market. By eliminating the minimum income threshold, Accord Mortgages aims to provide greater accessibility and flexibility for potential BTL borrowers.

This change reflects the understanding that a borrower’s income requirements may not always be the sole indicator of their ability to manage a rental property effectively. As a result, landlords and property investors will now have a more inclusive opportunity to secure financing and expand their property portfolios, contributing to the growth and diversity of the BTL market.

What are we being told?

From Wednesday, November 24th, 2021, Accord will remove its BTL (Buy-to-Let) minimum income requirements, marking a significant change in its lending policy. This decision reflects Accord’s commitment to making its financial services more accessible and inclusive for a wider range of individuals interested in property investment. Whether you’re a seasoned investor or someone considering their first step into the world of buy-to-let landlords, this policy adjustment opens up new opportunities and possibilities, all while considering the importance of income requirements in this evolving landscape.

It signals their recognition of the evolving landscape of property investment and the need to adapt to meet their clients’ diverse financial profiles and aspirations. By removing these income requirements, Accord aims to empower more landlords to participate in the dynamic and potentially lucrative world of Buy-to-Let, reinforcing their dedication to fostering financial growth and stability for their clients.

Accord believes that this change benefits mortgage intermediaries and their clients and strengthens their position as a flexible and customer-centric financial institution that understands the significance of income requirements in the financial world.

What’s changing?

In its ongoing commitment to accessibility, Accord has significantly changed its lending criteria. Accord understands that many responsible landlords may not always meet traditional minimum income requirements.

Therefore, they have removed the previous minimum income threshold of £25,000. This change enables more landlords to benefit from their lending solutions, including those who might not meet typical income criteria.

This adjustment benefits individuals whose financial circumstances do not meet standard income requirements. Despite this, these individuals still have a strong credit history and can manage their properties effectively.

Accord aims to create more opportunities for landlords to secure financing by eliminating this barrier. This applies to those expanding their portfolios, maintaining existing properties, or undertaking essential renovations, regardless of conventional income guidelines.

It’s important to note that while the £25,000 minimum income requirement is removed for most applications, the £50,000 threshold remains for top-slicing applications. This aligns with their risk assessment approach.

This decision ensures a balanced approach to risk while supporting a wide range of landlords. Accord remains dedicated to fostering positive relationships with landlords and property investors. This change is one of many ways they aim to serve your unique financial needs, including those who may not fit standard income criteria.

Affordability will still be based on the existing rental thresholds

They understand that every borrower’s situation is unique. They are committed to providing personalised solutions to meet specific needs. Affordability is determined based on existing rental thresholds. However, they recognise exceptional circumstances may arise. In such cases, their underwriters are empowered to exercise flexibility. Each application is considered on its own merits. This approach means they don’t rely solely on automated algorithms. Instead, they use common sense to make lending decisions.

Their lending criteria will remain consistent to ensure responsible lending practices. If you encounter a landlord client who is a first-time buyer, contact your dedicated Business Development Manager. This allows you to tap into their expertise. You can explore potential solutions fitting your client’s unique situation. They believe in working closely with you to find the best financing options. Their goal is to help your clients achieve their homeownership dreams.

Why mortgage networks are important to expert mortgage advisers

As a devoted mortgage network, our primary aim is to provide extensive assistance and support to our advisers. We ensure they reach their business goals, including meeting income requirements. With unwavering dedication, we transcend mere service provision; we become trusted partners on your path. We help you find perfect products for your clients while meeting your income needs.

Our network offers expert guidance, continuous development, and growth opportunities. We provide many resources to empower you at every stage of the mortgage application process. Ensuring you meet necessary income requirements is part of our service. Your success is our ultimate goal. We provide access to a wide array of lenders, including Accord Mortgages.

Our exceptional service and knowledge in the ever-changing mortgage industry support your income requirements.

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