Mortgage Insurance Calculators About How it Works
   Back | How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
   Back | Insurance
   Back | Calculators
   Back | Choose your mortgage type
Choose your mortgage type

Applying for a Buy-to-Let Mortgage Without a Minimum Income

Explore your options when applying for a buy-to-let mortgage without a separate income or where lenders stipulate a minimum income eligibility requirement.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2024-06-15
twitter  linkedin  

Applying for a Buy-to-Let Mortgage Without a Minimum Income

Many buy-to-let lenders only offer a mortgage against a rental property if the applicant meets a minimum income requirement, usually around £25,000.

So, what happens if you have an excellent investment opportunity and require a competitive buy-to-let mortgage but don't have the income to comply with this eligibility requirement?

Revolution Finance Brokers explains the varied options, the benefits of working with a skilled broker, and how to secure the mortgage borrowing you need to move forward with your rental property acquisition plans.

Minimum Income Rules on Buy-to-Let Mortgages

Although the standard £25,000 minimum income rule applies to many mainstream lenders, certain mortgage providers will consider applicants without a steady income or who have a separate employment stream but that doesn't reach the threshold.

For example, a property investor may have a robust portfolio of high-yield rental homes and easily meet affordability criteria without necessarily having a separate employment income.

Some lenders offer greater flexibility, where they impose a minimum income policy, but will accept a variety of income sources such as returns on investments, savings assets or capital assets such as stocks, provided the total value is sufficient to satisfy their risk assessment process.

There are also some limited buy-to-let products without a minimum income requirement, and although this isn’t a standard product available everywhere, there are several possible solutions depending on your financial circumstances.

Property or loan details



Error: Property must be valued at £50,000 or more.

Error: Estimated rental income must be between £1 and £99,999.

Based on your details, you can borrow up to:

£0

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Discover What Our Customers Have to Say!
Why Revolution Brokers?

Whole of market brokers Whole of market brokers

Mortgage that suits you Mortgage that suits you

On time customer support On time customer support

Buy-to-Let Mortgages Without Income Requirements Explained

Rental property mortgages vary considerably depending on the terms and the lender, but a mortgage that doesn’t include a minimum income rule is no different from any other, aside from this change to the qualification criteria.

In addition, most property investors and landlords expect to use the rental income generated by their property to cover the mortgage costs – if your projected yield is many times higher than the repayment cost, you may have no issues proving affordability.

Note that although buy-to-let mortgages without an income policy exist, they aren't available everywhere and are primarily a product structured through an independent broker, negotiating directly with a specialist lender focusing on buy-to-let mortgages.

Other criteria will still apply, and some lenders will request a business plan to demonstrate your expectations from your investment and assess the viability of your property investment strategy.

However, buy-to-let properties can be self-sustaining, and if your other application circumstances are very low risk, you have a much better chance of securing a buy-to-let mortgage irrespective of your income – particularly important for those in retirement.

Why Do Buy-to-Let Lenders Wish to See a Separate Income Stream?

Minimum income requirements are a peculiarity of the buy-to-let lending sector, and there is rarely any expectation that you will use other earnings outside of the rental income to pay your mortgage costs.

Some lenders have similar policies that vary slightly and are based on the rental value of the home, either in addition or instead of a minimum income rule.

For example, a lender may state that all buy to let mortgage applicants need to demonstrate a rental yield of at least 25% above the expected monthly mortgage repayment. Therefore, a buy-to-let mortgage with a repayment of £1,500 per month would be approved if the rental income has been valued at £1,875 a month or more.

Lenders will also factor in the running costs of the property, such as insurance, upkeep and utilities, depending on the rental agreement and how closely you fit within their affordability and risk assessment profiles.

Demonstrating Compliance With Minimum Income Criteria for Buy-to-Let Mortgages

Although much depends on your selected lender, some will accept any earnings as part of your eligibility assessment – although others will only lend to applicants with £25,000 income a year from employment or self-employment.

However, you might be able to meet this policy requirement by providing evidence of varied earnings, including:

  • Pension income
  • Rental yields
  • Benefit payments
  • Gifted funds
  • Savings accounts
  • Bridging financing

If you are reliant on a non-standard income source to apply for a buy-to-let mortgage, we strongly advise working with an independent broker since some lenders will automatically refuse your application – careful analysis is key to getting your mortgage deal over the line.

Providing Evidence of Income as a Buy-to-Let Mortgage Applicant

Buy-to-let mortgage applicants with a permanent job can easily evidence their income by providing copies of payslips and bank statements – but this may not be quite so straightforward if you have different earnings outside of conventional employment.

Self-employed applicants can also provide tax returns and business accounts to show their earnings, and most lenders will ask for at least two to three years of records.

If you wish to apply for a buy-to-let mortgage, and your primary income source is rent from a property or another income stream, you have a few different ways to approach the mortgage assessment process.

Landlords With Income Generated From Property Portfolios

Property investors with up to four properties and without an external source of income can produce sets of accounts as self-employed taxpayers, backed by their tax returns, and use these documents to show their annual income.

Those with larger portfolios with a higher number of properties may find that some lenders will impose a limit whereby they will only offer a buy-to-let mortgage for applicants within their threshold.

Therefore, your focus may be on selecting a suitable lender with whom you do not currently have other buy-to-let mortgage products, although some will only lend to a maximum value as a total of your borrowing from any mortgage providers.

Buy-to-Let Mortgage Applicants With a Pension

Retired property investors who draw income from a pension fund can withdraw a lump sum of up to 25% without a tax obligation, provided they are over 55, and lump sum drawdowns are included within their specific pension product terms.

Using a lump sum drawdown in lieu of other income isn’t advisable if you are under 55 because you will likely incur a substantial tax penalty.

Another route is to provide a pension statement, which will show the overall value of your fund and any regular withdrawals you are using as income, which some lenders will accept as a different income source from employment.

Applying for a Buy-to-Let Mortgage With Benefits

Mortgage lenders may have varying attitudes to benefit income, and some will include benefits such as disability allowances and other payments as part of your income assessment, whereas others will be reluctant to lend to buy-to-let applicants using benefits as their primary proof of income.

Proving Minimum Income With a Bridging Loan

Bridging finance is a flexible short-term lending product commonly used by buy-to-let investors to finance the costs of renovating or refurbishing a rental property investment, increasing its value before reselling or remortgaging.

The majority of lenders will disregard bridging finance when assessing your eligibility for a buy-to-let mortgage because the short-term nature, and high-interest cost, linked with this type of property are unlikely to mean it forms a long-standing element of your income.

Applying for a Buy-to-Let Mortgage With Savings Assets

If you have either accumulated savings, or been gifted cash, perhaps as part of an inheritance, you may potentially be able to use the capital as proof of income to meet your chosen lender’s requirements.

However, in line with money laundering regulations, they will need to see evidence that your funds have originated from a legitimate and safe source, so you may need to hire a financial adviser to help you pull together the documentation and records.

Mortgage applicants using gifted finances to apply for a buy-to-let mortgage will also often need to ask their benefactor to provide written confirmation that they are not expecting the funds to be returned.

Independent Advice on Buy-to-Let Mortgages Without a Minimum Income

If you would like to secure buy-to-let funding and cannot meet the usual minimum income requirement or have complex and varied income sources, an independent broker can assist.

We provide a whole-of-market service, with access to thousands of potential products, and can recommend lenders with the flexibility to be able to accept your application, regardless of how your earnings are structured.

Please get in touch with Revolution Finance Brokers at any time to discuss the buy-to-let mortgage market and those products which may be a good fit if you do not have a separate income stream or have been turned down due to minimum income policies.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

twitter  linkedin  

Further Reading

Explore Explore Our Presence Our Presence

Explore Explore Our Presence Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

Revolution Mortgage Brokers:100% 100%
Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

Refer, Relax

andget £50get £50
We are proud
members of the:
NACFB
Refer, Relax

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next