Whats changing

From Thursday, 7th December, we’ll accept Buy to Let applications from first-time buyers and non-owner occupiers. This means your clients will no longer need to own a residential property when looking to purchase or remortgage a buy-to-let property with us.

Why are we making this change

At Barclays, our approach to affordability means we’re now able to support more clients looking to re-mortgage or purchase a Buy to Let property, providing the subject property will be let out to a tenant and that it will not be lived in by the borrower or a family member.

This change offers an alternative way of helping first time buyers get onto the property ladder. For example, a young professional currently working and renting in an area with higher than average house prices, such as London, might be looking to purchase a property to rent out as an investment in a more affordable part of the UK, without having to move themselves.

This announcement also gives non-owner occupiers, who might be looking to re-mortgage an existing investment property, a way to kick-start 2018 by giving access to our competitive Buy to Let product range.

What you need to know

There’s no change to our existing Buy to Let mortgage application process, and all other existing criteria and affordability requirements remain the same. This change will impact all existing pipeline applications including cases that have already been submitted in MAX to Mortgage Origination’s before 7th December 2017. This is to ensure that we treat customers with applications already submitted fairly and give them the benefit of the new rules.

When making a Buy to Let application with us on behalf of your client, please ensure that:
• The applicant’s Residential Status is correctly input on the ‘Personal Details’ page of our application process. Verification of where a borrower resides forms part of our assessment;
• If any applicant is currently paying rent (e.g. as a private tenant or living with family / friends etc.), the monthly rental payment must be included under ‘Other Regular Commitments’.
Please contact your Barclays support team for further information

Thank you for your continued support.