Precise Mortgages has removed its minimum income requirement on all buy-to-let applications and increased the maximum loan size on its near prime range.
Precise has previously imposed a minimum income requirement of £25,000.
Buy-to-let applicants will now be required to provide three months worth of bank statements in lieu of proving income.
The maximum loan size on the near prime range has been increased from £300,000 to £500,000.
Precise Mortgages managing director Alan Cleary says: “These changes are a common sense approach to underwriting which will allow good quality borrowers to obtain mortgages they otherwise may not have qualified for because of arbitrary rules. We have considered these changes very carefully to ensure we continue to lend in a responsible and compliant manner and within our credit risk mandate.”
Chadney Bulgin mortgage partner Jonathan Clark says: “It is good to see another lender remove the minimum income requirement on its BTL products but also rather surprising at a time when we know this is an area under close scrutiny from the FSA, which is rightly concerned that this could be abused. I am sure Precise will closely monitor business to ensure that this does not happen.”