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 are removing their BTL (Buy-to-Let) minimum income requirements, marking a significant change in their lending policy. This decision reflects their commitment to making their 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 the diverse financial profiles and aspirations of their clients. By removing these income requirements, Accord aim 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 believe that this change not only benefits mortgage intermedaries and their clients but also 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 their ongoing commitment to making their services more accessible and accommodating, they have made a significant change to their lending criteria. Accord understand that many responsible and reliable landlords may not always meet the traditional minimum income requirements, even when considering income requirements.
Therefore, they have removed the previous minimum income threshold of £25,000, enabling a wider range of landlords to benefit from their lending solutions, including those who might not meet the typical income requirements criteria.
This adjustment is particularly beneficial for individuals whose financial circumstances may not align with the standard income requirements, despite income requirements, but who still have a strong credit history and the capacity to manage their properties effectively.
By eliminating this barrier, Accord aim to create more opportunities for landlords to secure the financing they need to expand their property portfolios, maintain their existing properties, or undertake essential renovations, regardless of whether they meet the conventional income multiples guidelines.
It’s important to note that while they have removed the £25,000 minimum income requirement for most applications, they still maintain the £50,000 minimum income threshold for top-slicing applications, which is in line with their approach to risk assessment while considering income requirements.
This decision ensures that they maintain a balanced approach to risk assessment while supporting a wide range of landlords in their endeavors. At their core, they remain dedicated to fostering positive relationships with landlords and property investors, and this change is just one of the many ways they are working to serve your unique financial needs better, including those who may not fit the standard income requirements criteria.
Affordability will still be based on the existing rental thresholds
Furthermore, they understand that every borrower’s situation is unique, and they are committed to providing personalised solutions to meet their specific needs. While affordability is still determined based on the existing rental thresholds, they recognise that there can be exceptional circumstances. In such cases, their underwriters are empowered to exercise flexibility and consider each application on its merits. This means that they don’t rely solely on automated algorithms but also on good old common sense to make lending decisions.
Their lending criteria will remain consistent, ensuring that they maintain responsible lending practices. However, if you come across a landlord client who is also a first-time buyer, they encourage you to reach out to your dedicated Business Development Manager. By doing so, you can tap into their expertise and explore potential solutions that might be the perfect fit for your client’s unique situation. They believe in working closely with you to find the best financing options and help your clients achieve their homeownership dreams.
Why mortgage networks are important to mortgage advisers
As a devoted mortgage network, our primary goal is to deliver extensive assistance and support to our mortgage advisers, ensuring they reach their business goals, including meeting their income requirements. With an unwavering dedication to excellence, we transcend the role of a mere service provider; we become your trusted partner on the path to finding the perfect products for your clients while helping you meet your income requirements.
Our network is at your disposal, offering expert guidance, continuous development, growth opportunities, and a plethora of resources to empower you at every stage of the mortgage application process, all while ensuring you meet the necessary income requirements. Your success is our ultimate aim, and we are here to provide you with access to a wide array of lenders, including Accord Mortgages, while delivering exceptional service and knowledge in the ever-changing mortgage industry, supporting your income requirements along the way.