It was revealed this month that Barclays has added its name to the group of lenders now offering first-time buyers the chance to enter the buy-to-let market.
The High Street bank has taken the decision to open up this type of mortgage product to people who aren’t already property owners, breaking with its previous policy.
Bosses there believe that the new approach may be a boost to those young people who have struggled to get a foothold on the ladder in regions of the UK where property prices are particularly high.
A Barclays spokesman said: “Barclays is a responsible lender and we’re always looking at ways to innovate and open up access to home buying.
“First time buy-to-let will give someone who does not have a mortgage an opportunity to get onto the property ladder.”
The institution follows in the footsteps of NatWest and several smaller building societies, which have already put similar arrangements in place.
Previously Barclays has only offered this type of product to individuals who are already owner-occupiers. However, now that lenders are able to take a prospective borrower’s personal income into consideration, it has allowed them far more flexibility.
For more information on how Palmers can assist your buy-to-let clients and prospective investors, please contact us.