Accord Mortgages has introduced a series of changes designed to improve affordability options for landlord borrowers.
Effective today, the intermediary-only lender will allow first-time landlords to use top slicing, provided applicants have a minimum household income of £75,000, excluding rental income.
Accord defines first-time landlords as those who have not owned a property they have let out for more than 12 months.
The update enables new landlords to use personal income to bridge any gap between their rental income and the mortgage amount they require.
The lender has also reduced the minimum income threshold for experienced landlords using top slicing to £40,000, down from £50,000.
Top slicing remains available to all landlord applicants up to 75% loan-to-value, with joint applicants required to live in the same residential property.
Angelika Christian, strategic partnerships and propositions manager at Accord Mortgages, said: “As a buy-to-let lender, we’re committed to doing everything we can to support landlord borrowers.
“This change allows us to provide greater flexibility to brokers and their landlord clients, providing new options for those – especially first-time landlords – who have surplus income they can use to borrow more, helping them to support the crucial private rental sector.”
Accord said the enhancements reflect its intention to support broader landlord demand at a time when affordability remains a key consideration for intermediaries advising buy-to-let clients.
The lender added that the changes should help brokers offer more options to borrowers seeking additional flexibility in a challenging market.
