NatWest overhauls buy to let mortgage offer ahead of rules change

NatWest Intermediary Solutions has announced a major overhaul of its buy to let mortgage offer, but it is bucking the trend of some other lenders.

As with other mortgage companies, portfolio applicants with four or more BTL properties will have to produce additional information on their other properties (residential and buy to let) to enable a full affordability assessment.

Additional information will also be asked for in relation to landlords’ experience, use of letting agents and future plans to expand or reduce their portfolio, while the same ‘higher’ stress rate will be applied to all other mortgages as well as the current application.

NatWest’s valuation service will assess rental demand and income for all other properties being let. By the end of this year it will introduce a revised interest coverage ratio calculation of 5.5 per cent x 135 per cent; in all cases expected rent will have to meet a minimum rental cover calculation of 5.5 per cent x 125 per cent.

However, unlike some other lenders NatWest is also increasing the total number of buy to let properties it will allow a landlord customer to own from four to 10, including unencumbered properties and properties mortgaged with another lender.

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