Foundation Home Loans is now accepting properties let to social housing tenants, while Barclays has also enhanced criteria today for borrowers with an extra mortgage.
At Barclays, the maximum loan-to-value for borrowers who have an additional residential mortgage in the background has increased from 80% to 90%.
The new rule applies to borrowers who have an additional mortgage that is not being redeemed as part of a purchase or remortgage transaction with Barclays.
Where such borrowers have permission to let the background property, the max LTV will remain capped at 80%.
Meanwhile, Foundation Home Loans is now accepting properties that are let to social housing tenants.
Under the criteria, housing association or local authority tenants of any buy-to-let property mortgaged by Foundation must form a single household.
The lender says this change gives landlords further flexibility at a time when demand for social housing continues to grow.
For landlords, letting to councils and social housing providers can provide a more predictable income stream and lower risk of void periods, while tenant vetting and inspections are handled by the housing association or local authority.
Lease agreements can be up to five years, providing consistent cashflow and stability.
Foundation’s director of product and marketing Tom Jacob says: “We are always looking for ways to broaden the opportunities available to brokers and their landlord clients.
“Accepting lettings to housing associations and local authority tenants is a natural step that supports landlords in achieving secure, predictable returns, while also helping to meet the critical demand for affordable housing.
“We want brokers to see us as their first choice for a wide variety of buy-to-let cases, whether that’s standard private rentals, more complex houses in multiple occupation or multi-unit freehold block lending, and now, social housing arrangements.
“With a clear process, minimal extra documentation, and support from our regional account managers, we’ve ensured this new option can be accessed by brokers with confidence.”
