Mr Stewart said: “Customers without obvious income but where rental income is enough to meet mortgage payments will have access to a wider range of buy-to-let mortgage lenders, and can shop around for a better deal.”
Lenders that demand a minimum income usually require from £15,000 to £75,000. First-time landlords are much more likely to be required to have personal income in addition to rental income, Mr Stewart said, as are portfolio landlords and those investing in houses in multiple occupation.
Chris Sykes, of mortgage broker Private Finance, said: “It is a welcome change for many. Those who treat buy-to-lets as their pension wouldn’t qualify for finance through Accord previously, but would now.”
Rental growth rates are near a 10-year high in all areas of the country except for London and Scotland, according to Zoopla. Rents are forecast to rise by a further 4.5pc by the end of next year.
The supply of rental homes is 43pc below the long-term average, which has inflated prices and pushed down yields.
In addition to the tapering of mortgage interest tax relief, since 2016 investors have also had to pay a three percentage point stamp duty surcharge on buy-to-let purchases.
Landlord organisations claim this has forced a quarter of a million to sell up and exit the market over the past five years.
