Gatehouse Bank announces criteria changes on selected buy-to-let purchase plans
Gatehouse Bank has today announced a series of criteria updates and reduced documentation requirements across selected buy-to-let purchase plans.
The Bank has reduced the minimum level of experience required for landlords looking to purchase Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs). Customers will now be required to provide a minimum of one years’ experience as a residential landlord, regardless of the property type.
Previously, a minimum of two years’ experience as a landlord or a minimum of one years’ experience, specifically within HMO or MUFB properties had been required. This change applies to all customers, whether they reside in the UK or overseas.
Additionally, Gatehouse Bank has streamlined the application process for UK buy-to-let customers who are using top slicing. Top slicing, sometimes referred to as income top-up, can be used where the rent paid by the tenant does not exceed the monthly payment charged by the Bank by the required amount. In these cases, subject to certain limits, the applicant’s personal income can be used to ‘top up’ the shortfall.
Applicants requiring top slicing who reside in the UK will now typically need to provide one month of payslips and bank statements, instead of documents from the last three months, which had previously been required. To qualify for top slicing, there is a minimum annual income of £32,000 from at least one UK-based applicant.
Gemma Donnelly, head of customer propositions at Gatehouse Bank, said: “We are always looking for ways to make our process simpler and more efficient for brokers and customers while still ensuring we are providing finance responsibly.
“Today’s changes will not only set us apart from other providers but will enhance the customer journey for those looking to purchase a buy-to-let property with us.”