NatWest lowers B2L rental cover for higher earners
Share
NatWest Intermediary Solutions is lowering its rental income requirement for buy-to-let applicants with higher incomes.
Its previous rental cover requirement for buy-to-let mortgages was 125% calculated at an interest rate of 6.75%.
But applicants who can demonstrate they have the financial means to cover rental voids and buildings maintenance and have no more than three buy-to-let properties may now be able to access a reduced rental cover calculation of 100% at an interest rate of 7.0%.
Graham Felstead, head of the intermediary channel at NatWest Intermediary Solutions, says the lender is aiming to increase its buy-to-let lending in the small portfolio, higher income sector of the market.
He says: “Recent statistics released by the Council of Mortgage Lenders show that the buy-to-let market is improving, but it’s by no means a homogenous sector.
“The performance of geographical regions and portfolio types will differ, so it’s important not to get too carried away. From a lenders’ point of view, it’s important to balance the mix of business you attract.
“We have focused our buy-to-let lending on broker clients with smaller portfolios rather than the professional landlords’ sector, so this improved rental calculation should prove to be attractive to intermediaries who have clients operating in this sector of the market.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
