Kent Reliance changes BTL cover rates

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Kent Reliance for Intermediaries is changing its buy-to-let lending criteria to reflect landlords’ experience and the transaction type.

The arm of OneSavings Bank says where the property is a single dwelling, HMO or multi- or student let with fewer than four letting rooms, the following rental cover rates will apply.

These covers are based on a mortgage interest rate plus 0.35 per cent or 5 per cent, whichever is higher:

  • Experienced landlords with more than three buy-to-let properties can have a 110 per cent rental cover where blended portfolio rental income exceeds 125 per cent at a 5 per cent notional interest rate. This is available up to 75 per cent LTV. Where blended portfolio rental income is not being used, a 125 per cent rental cover will be applied for landlords who own three or more BTL properties.
  • Inexperienced landlords will have a 130 per cent rental cover where the landlord owns fewer than three BTL properties.

Where the mortgage is for an HMO, multi-let or student let with more than four letting rooms, the house is bought or refinanced through a limited company, the following covers apply.

These covers also apply to freehold blocks or titles of land with four or more residential units, with the same mortgage interest rates as above:

  • Experienced landlords with three or more properties will have a 140 per cent rental cover where their blended portfolio rental income exceeds 150 per cent based at a 5 per cent notional interest rate. This is available up to 75 per cent LTV. Where the blended portfolio rental income is not being used, a 150 per cent rental cover will be applied for landlords who own three or more BTL properties.
  • Inexperienced landlords now have a 160 per cent rental cover if they own fewer than three buy-to-let properties.

The changes take place from today.