BM Solutions is understood to be looking at changes to its buy-to-let underwriting criteria, with it rumored to be looking to remove its £25,000 minimum income requirement. Good news for prospective landlords.
Mortgage Strategy understands that at a recent meeting brokers were told by a BM Solutions BDM that the lender was looking at scrapping its minimum income requirements, conceding that relaxing underwriting criteria was essential to increasing volumes.
A spokeswoman for Lloyds Banking Group says it does not comment on market speculation.
But sources close to the firm confirmed the lender is looking at a range of options to boost lending.
In January, we reported that Lloyds Banking Group has aggressive buy-to-let lending targets for 2013, with it rumored to be planning to increase buy-to-let as a proportion of lending to around 21 per cent compared to 17 per cent in 2012.
At the halfway stage of 2012, Lloyds had lent around £12.3bn in total, with around £2bn of that being buy-to-let business. At the time, the lender would not say what it hoped to lend in 2013 only that it expected to increase gross lending.
Lloyds restricted its buy-to-let criteria in 2010 when it introduced criteria restrictions such as a maximum of three buy-to-let properties per customer.
Martin & Co Letting agents Hailsham, Uckfield & Lewes.