Buy-to-let lenders remove minimum income requirements to attract retirees

A number of buy-to-let mortgage providers are dropping minimum income requirements to attract silver landlords to the market.

Accord Mortgages, the buy-to-let brand of Yorkshire Building Society, is one such lender to do so, while NatWest similarly eased its rules earlier this year.

Previously it was standard practice for buy-to-let applicants to require a minimum income of £25,000.

Bank of Ireland, BM Solutions, Coventry Building Society and Foundation Home Loans are other lenders that don’t have minimum income requirements.

Marc Dueck, Director of ME Financial Services, said: “It is a welcome change for many. Those who treat buy-to-lets as their pension wouldn’t qualify for finance through Accord previously, but would now.”

Accord is also encouraging first-time landlords to apply, saying they should contact their business development manager for case-by-case treatment.

Nationally rents have risen by 7.9% in the past 12 months across the UK, while the city markets are rebounding after experiencing a lean period during the pandemic.

The long term undersupply of rental properties across the country is expected to support rental growth into 2022, according to a recent report from Zoopla

In addition, the supply shortage coupled with the strength of the employment market which, despite the pandemic, is set to remain robust, will in turn support demand and sustain rental growth.
The portal says the level of rental demand might ease in the near term in line with seasonal trends, but demand levels will remain higher than usual, especially in city centres, where there is an element of pent-up demand being released.