Woolwich improves buy-to-let proposition

Woolwich has announced that it is improving its buy-to-let proposition by simplifying documentation requirements.

For loans up to 500,000 and with a maximum LTV of 75%, proof of income is no longer required. Also, for loans greater than 75% LTV or where the maximum aggregate buy-to-let borrowing is between 500,001 and 1m, only the latest payslip and personal bank statement for the principal applicant are required.

No documentation required from second and subsequent applicants, and a copy of the letting agreement is no longer required.

There is now a minimum interest cover of 125%, where interest is calculated at 5%. Borrowers can now build a portfolio of properties up to an aggregate of 5 million with no limit on the number of properties. Also, loans on individual properties up to 2.5m are now considered.

Andy Gray, head of mortgages for the Woolwich, says: Our simplified lending policy builds on the changes we made in September to rental calculation. With todays improvements we think we now have a market leading proposition which shows our commitment to this market.