Applicants who can prove they can afford to cover rental voids and buildings maintenance, who have no more than three rental properties, may be offered the reduced rental cover calculation of 100% at 7%, compared to 125% at 6.75%.

This means an applicant fitting the criteria looking to borrow £200,000 would need to generate £240 less in monthly rental income than previously.

Even for a loan of £60,000, it would result in a reduction of £71 in the monthly rental income requirement.

Graham Felstead, head of intermediary channel, NatWest Intermediary Solutions, said: “Having reviewed the current market dynamics, we believe there is an opportunity to increase our buy-to-let lending in the small portfolio, higher income sector of the market, where landlords can demonstrate that they have the financial means to cover costs such as rental voids and buildings maintenance from their own resources.

“Recent statistics released by the CML show that the buy-to-let market is improving, with the number of new loans rising by 16% in Q3, 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.

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“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.”