Barclays is now taking buy-to-let applications from first-time buyers and non-owner occupiers.
The changes mean customers no longer need to own a residential property when buying or remortgaging a buy-to-let property with the lender.
The move takes place today, according to a note the lender sent to brokers.
The note adds: “This change offers an alternative way of helping first time buyers get onto the property ladder.
The broker note says the subject property cannot be lived in by a borrower or family member.
“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.”
There is no change to the lender’s current buy-to-let mortgage application process.
This change will impact all existing pipeline applications.
A Barclays spokesman says: ““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.”
