On the product side, minimum property value was recently reduced to £75,000 from £120,000. This move was driven by the realities of the market outside the southeast, particularly in the North of England, the Midlands, and the South Wales valleys.
“You can still buy a three-bed terraced house for £70,000 to £80,000 and get £600 a month rent off the back of that — the yield is really good,” Cadwallader explains.
Heavens adds that “for landlords looking to grow their portfolio, smaller deposits on lower-value properties help support diversification.”
Heavens also points to the fact that, unlike many other lenders, Family Building Society has no minimum income requirement for buy-to-let. The conversations he has with brokers reflect that flexibility. When a broker calls to ask about income requirements, his response is to ask a question of his own: how will the borrower cover rental voids?
It’s a practical, case-by-case approach, Heavens says, rather than a rigid threshold. Cash and savings, investments, a pension, or a partner with a good income — any of these can provide the reassurance needed to move forward.