Accord Mortgages is taking further steps to support landlords with changes designed to boost their affordability.
Effective today, the intermediary-only lender has enhanced its top slicing criteria to accept first-time landlords, defined as those who do not own a property they have let out for more than 12 months. Applicants must have a minimum single or joint household income of £75,000, excluding rental income.
The change allows first-time landlords the flexibility to use personal income to bridge any shortfall between the mortgage they need and their rental income, a process known as top slicing.
Income threshold lowered for experienced investors
Accord has also reduced the minimum income for top slicing to £40,000, down from £50,000, for experienced landlords. Top slicing for all landlord applicants is available up to 75% loan-to-value. For joint applicants, all parties must live in the same residential property.
"As a buy-to-let lender, we're committed to doing everything we can to support landlord borrowers," said Angelika Christian, strategic partnerships and propositions manager at Accord Mortgages. "This change allows us to provide greater flexibility to brokers and their landlord clients, providing new options for those – especially first-time landlords – who have surplus income they can use to borrow more, helping them to support the crucial private rental sector."
