BTL expansion continues apace

There have been more developments which are changing the face of buy-to-let as older and self-employed investors are being attracted to the sector.

The Mortgage Works, one of the largest mortgage firms providing BTL products, has removed the upper age limits from their range. This means investors who have reached retirement age can now borrow to fund a buy-to-let investment; there is a maximum applicant age of 70 but all age restrictions on the date of maturity have been removed.

In theory, therefore, a 69-year-old could apply for, say, a 25 year BTL mortgage.

Meanwhile Santander for Intermediaries is opening its BTL product range to the self-employed, a group which has found it hard to borrow since the credit crunch restrictions introduced in 2008.

At least one applicant must be employed or self-employed earning a minimum basic gross salary/taxable income of £50,000 per annum where an applicant will have five or more buy-to-let properties on completion or five or more secured credit commitments at application.

Where an applicant has four or less buy-to-let properties on completion or four or less secured credit commitments at application, the criteria remains the same with at least one applicant in employment (full or self-employed) earning a minimum basic gross salary/taxable income of £25,000 p.a.

Self-employed applicants must provide either the self-assessment tax form SA302, covering a minimum of 12 trading months or final accounts, signed by a qualified accountant.