BM Solutions, owned by Lloyds, has removed its minimum income requirement of £25,000 for all its buy-to-let mortgages.
Instead, the lender will look at rental income, rather than a borrower’s other earnings.
The mortgage affordability calculation remains at 125% of rental income, but the criteria have been tightened.
A spokesperson for BM Solutions said: “We regularly review our buy-to-let policy to ensure that we can support the increasingly important role of the private rental sector.
“Our move to take away the minimum income requirement acknowledges that as buy-to-let affordability is based on rental income, rather than personal income, we can make it more accessible to more landlords. They will now simply need to include income details on their application.
“At the same time, we are updating our BTL affordability criteria. This remains at 125% of rental income, but at the higher of either the initial pay rate or a notional rate which is currently 5%.
“We believe that this is the right thing to do to ensure borrowers are in the best possible position to be able to manage future payments if their circumstances change.”
Meanwhile, specialist buy-to-let lender Mortgage Trust has launched two new ‘limited edition’ products.
Sister company of Paragon Mortgages, Mortgage Trust has introduced two fixed rate products at a market-leading 2.99% with a 3% fee, and a 4.15% with a flat fee of £950. Both products are available for purchase and remortgage at up to 75% Loan to Value.
Both new products come with free valuations and brokers can apply online via the revamped Mortgage Trust website, which gives a lending decision in seconds.
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