Barclays Mortgage Changes for New-Builds, Residency, and Buy-To-Let Applications

by | Friday 12th Apr 2024 | Mortgage News

Barclays Introduces Changes to New-Builds, Residency, and Buy-To-Let Applications

Barclays Introduces Changes to New-Builds, Residency, and Buy-To-Let Applications

Barclays bank has announced significant changes to its mortgage criteria, impacting new-build house purchases, minimum UK residency requirements, and the minimum age for buy-to-let applications. Let’s explore what these new Barclays mortgage changes are, why they are so significant, and what they could mean for the UK mortgage market.

Barclays Mortgage Changes To New-Build Criteria, UK Residency, and Buy-To-Let Applications

The most notable change comes in the form of removing the cap on builder incentives for new-build properties. Previously, Barclays limited new-build developer or builder financial incentives to 5% of the full purchase price or valuation. However, the recent update means that any incentive exceeding this threshold will now be deducted from the valuation amount before calculating the maximum Loan to Value (LTV). For example, let’s consider a new-build house valued at £300,000 with a builder cash incentive of £33,000, equating to 11% of the valuation. In this scenario, the excess amount over the 5% limit, which is £18,000 (6%), will be subtracted from the valuation, resulting in a recalculated maximum loan amount based on the adjusted valuation.

Minimum UK Residency For Barclays Mortgages

Additionally, Barclays has reduced the minimum UK residency requirement for residential mortgage applications. Previously set at 2 years for UK residents without Permanent Right to Reside (PRR) status, the residency requirement has been shortened to just 12 months. This change aims to facilitate homeownership for individuals who have recently relocated to the UK.

Minimum Age For Buy-To-Let Mortgage Changes

Finally, in the recent criteria update from Barclays, the minimum age for buy-to-let applications has been lowered from 21 to 18 years old, providing greater opportunities for younger property investors to enter the property market and build their investment portfolios.

Speak To An Informed Mortgage Advisor

In light of these adjustments, it becomes increasingly vital for prospective homebuyers and investors to navigate the mortgage landscape with precision and expertise. Working with a qualified and informed mortgage broker can make all the difference in securing the most suitable mortgage product tailored to individual needs and circumstances. At Oportfolio Mortgages, our team of experienced brokers remains committed to staying abreast of the latest criteria changes and industry developments. By leveraging our expertise and comprehensive market knowledge, we ensure that our clients receive unparalleled guidance and support throughout their mortgage journey. Whether you’re purchasing a new-build property, exploring buy-to-let opportunities, or navigating residency requirements, our dedicated brokers are here to provide personalised solutions and help you achieve your property ownership goals. Call our team of mortgage brokers today to see how we can help.

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If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

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