The survey apparently revealed that just under half of brokers say 50 per cent or more of their buy-to-let clients are looking for products with a rental income requirement of less than 125 per cent. The feedback we’ve been getting from our own packagers and brokers backs this up. There is a growing demand among experienced buy-to-let investors to demonstrate their credit worthiness through their property management track record, credit record and other sources of income. The notion of underwriting solely on some arbitrary rental income percentage is too basic a measurement for the growing number of sophisticated property investors.
That is why Rooftop does not set a minimum rental cover for portfolio landlords. Instead we base our lending decision on a comprehensive assessment of the customer’s mortgage portfolio, credit history and all income. We wouldn’t be surprised if more lenders were to follow suit and where appropriate make rental coverage requirements less restrictive. We think the market would benefit as a result.
Alison Beech
Business development director Rooftop Mortgages
