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Kent Reliance launches income-backed buy-to-let proposition

Specialist mortgage lender Kent Reliance has launched an income-backed buy-to-let mortgage for limited companies and individual lending.

The mortgage provider will now take a broader view of customer affordability using earned income to supplement the interest coverage ratio (ICR) for buy-to-let loans, when the rental property yield in itself does not meet minimum requirements.

Adrian Moloney, sales director, OneSavings Bank, commented: “This new, broader approach to buy-to-let affordability will provide additional flexibility to allow earned income to form part of the affordability assessment for a buy-to-let application. 

“High property values, particularly within London and the South East, can result in lower yields and as a result, some applicants may be refused lending, even on good quality properties. We’re looking to fix that.”

The new proposition, which has been specifically tailored for non-portfolio landlords looking to borrow through a limited company arrangement or on an individual basis, is supported with an easy to use online calculator to help assess and confirm eligibility.

Ying Tan, managing director, Buy to Let Club, commented: “Kent Reliance has always excelled at recognising the needs of brokers and this latest initiative is evidence of that.

“The lending landscape has changed considerably as a result of the new rules on affordability and landlords in areas with high property prices especially are feeling the impact.

“By taking into account an investor's other incomes to support their application, Kent Reliance is helping landlords to navigate the market challenges and I'm sure this move will be widely welcomed.”

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