Barclays BTL affordability to include personal income

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 BTL 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.

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 children’s’ university fees or enhancing their lifestyle in retirement.”