Gatehouse relaxes criteria for novice landlords Mortgage Finance Gazette

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Gatehouse Bank is opening up its mortgages for houses in multiple occupation (HMO) to landlords with just one year’s experience of owning a buy-to-let property.

The same rule will apply to landlords buying multi-unit freehold blocks (MUFBs).

Previously, when lending on HMOs and MUFBs, Gatehouse required two years’ experience as a buy-to-let landlord, or just a year if the borrower had already owned those specific property types.

The change applies to both UK residents and overseas customers.

The bank has reduced admin requirements for UK buy-to-let customers using top slicing, where personal income is used to cover a shortfall in rental income against mortgage payments.

Applicants using top slicing who live in the UK will now typically need to provide one month of payslips and bank statements, rather than the previous requirement of three months’ worth.

To qualify, at least one UK-based applicant must have a minimum annual income of £32,000.

Gatehouse Bank head of customer propositions Gemma Donnelly says: “We are always looking for ways to make our process simpler and more efficient for brokers and customers while still ensuring we are providing finance responsibly.

“Today’s changes will not only set us apart from other providers but will enhance the customer journey for those looking to purchase a buy-to-let property with us.”