This Week's Insights 09/09/2019

BTL Properties in the Background - Help or Hindrance?

In terms of affordability, BTL properties in the background often used to get in the way. However nowadays, they are usually ignored so long as they ‘wash their face’; several lenders will even add the excess rental income into the equation, often enhancing affordability income. 

Take a straightforward case, with one BTL in the background, which the client has owned for several years and has an excess of £700pm approx. The maximum loan available for this case is boosted by nearly 20% over the same client having no BTL’s.

Not only does the range increase, but different lenders appear at the top of the MBT results list as well - HSBC being particularly strong for this sort of case. 

So don't discount a client with BTLs, as their actual affordability may well surprise you!

MBT Affordability Statistic of the Week…

Based on all 'mortgage has background property' cases run through MBT Affordability in the last month, the maximum affordability league table top five was:
1. Santander
2. Newbury Building Society
3. Kensington
4. Accord Mortgages
5. HSBC


If you have any requests or comments about 'Mr Affordability says...' please email me at mraffordabaility@mortgagebrokertools.co.uk.

Thank you

Mr Affordability


Lewis Lenssen