A new survey by Precise Mortgages has found that 52% of buy-to-let landlords are using rental properties to supplement their employed income.
With savers receiving miserable returns, it is unsurprising to find that many investors are turning to the buy-to-let sector as a means of supplementing their income.
According the research, even landlords with bigger portfolios are still working full-time – 32% of those with 11 to 19 properties supplement earnings from a full-time job with letting income and nearly one in five - 18% - of those with 20-plus properties have other income in addition to rental earnings.
Across the market as a whole 33% of landlords earn their living purely from their property portfolios, rising to 47% among those with six to 10 properties.
Around one in six - 16% - landlords plan to add more properties in the year ahead with 71% funding purchases with a buy-to-let mortgage.
Alan Cleary, managing director of Precise Mortgages, said: “Given that the majority of landlords have other earnings that can be used to show they can meet underwriting standards, lenders need to reflect this in their product offering to support landlords accordingly.”
Precise Mortgages has enhanced its top slicing feature, which enables customers to use surplus portfolio or earned disposable income to prove they can meet any financial stresses on a new loan application rather than through the rental income of the property alone.
It is now accepting top slicing on all eligible personal ownership, limited company, portfolio, HMO, and holiday and student let applications. First-time buyers are excluded.
Cleary added: “Top slicing allows landlords to manage their properties in a way they choose and gives them greater access to the products and loan sizes they want and particularly for those who may have been restricted by ICR requirements in the past.”