NatWest Intermediary Solutions will tomorrow introduce changes to its buy-to-let criteria tomorrow.
It believes the move will significantly widen the appeal its buy-to-let mortgages will have to brokers and their customers.
Whereas, to date, its target market was ‘non-professional’ landlords, it will be lifting previous restrictions to enable ‘professional’ landlords to apply for its buy-to-let mortgages.
It will now consider applications from customers who derive more than 30% of their income from rental properties
It has removed the maximum loan limit of £500,000.
The new criteria will only apply to new cases that have been submitted from tomorrow onwards. All other criteria remain the same. The rental cover calculation remains at 125% x 5.5%.
Paul Kane, acting head of sales at NatWest Intermediary Solutions, said: “Over the last 18 months we have made improvements to our buy-to-let offering to grow our presence in this sector. Having enjoyed great success and increased our lending, we are now confident that we can significantly grow our buy-to-let business into areas of the market that previously we have not operated in.
“The introduction of our new criteria means that we can now welcome applications from ‘professional’ landlords which is something that many brokers have been crying out for.
“The buy-to-let mortgage market has grown significantly over the last six years from accounting for 5% of all UK gross lending in 2009 to 15% in 2015. It is the fastest growing segment of the mortgage market in the UK. The changes we are introducing, combined with the recent rate cuts we made across our portfolio, mean we have a really strong proposition for mortgage intermediaries who are serious about this market.”