Virgin Money is raising its interest coverage ratio from 125 per cent to 145 per cent from next Monday.
The lender will also change its interest rate stress from 5.74 per cent to 5.50 per cent for all tracker and fixed loans of less than five years, according to a broker note.
The stress rate for Virgin’s five-year fixed rate products will be the higher of the product rate or its buy-to-let variable rate, currently 4.74 per cent.
From Monday the lender will also stop new lending to landlords with more than 11 mortgaged properties.
Virgin Money’s maximum portfolio limit of £2m and/or four properties with Virgin Money will remain unchanged.