B2L deal needs no rental proof

Bananas Inc has released a two-year fixed-rate buy-to-let mortgage that has no requirement for proof of rental income.

The product, which is funded by Rooftop, is fixed at 5.99% for two years from completion and is available to 90% LTV.

Applicants for the deal must have a clean residential mortgage payment record and at least one buy-to-let mortgage which has been satisfactorily conducted for a minimum period of 12 months.

There is no higher lending charge attached to the deal.

Sue Cox, business manager at Bananas Inc, says: “Proof of rental income is a requirement of buy-to-let lenders but it can be a problem for borrowers with low rental yields.

“This product is specifically targeted at these people, with a competitive fixed rate of 5.99%. We are expecting buoyant demand from brokers and their clients for this product – especially from some of the more experienced landlords in the industry.”

But William Scott, mortgage adviser at Bestinvest, says: “I don’t think something like no rental income is an issue with a buy-to-let deal.

“It isn’t in a landlord’s interest to exaggerate potential rental income if it isn’t going to cover mortgage repayments.”