Newcastle cuts buy-to-let income requirement

Newcastle cuts buy-to-let income requirement

Newcastle has cut the minimum income requirements for joint buy-to-let properties from £40,000 to £30,000.

The change enhances the lender’s existing buy-to-let lending policy, which includes no maximum age limit and five-year fixed products stressed at 145 per cent at 4 per cent.

Newcastle has also refreshed its range of buy-to-let products and recently announced it would allow borrowers to overpay by 10 per cent of their mortgage balance a year over and above the already permitted £499 regular monthly overpayments.

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Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “As we continue to grow our buy-to-let offering, the reduction of the minimum income for joint properties reflects our commitment to the market and to providing more flexibility for brokers seeking the right choice for their clients.”

Bob Riach, principal at Scunthorpe-based Riach Financial Advisers, said: “I think it is a positive. In the area where I am based, we have got quite a low earnings level.

“You have factory workers round here earning £13,000 or £14,000, and higher earners on £25,000 to £30,000, so it will help.”