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Natwest relaxes buy-to-let rules over selective licensing

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  • 13/07/2015
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Natwest relaxes buy-to-let rules over selective licensing
Natwest Intermediary Solutions has started considering buy-to-let mortgage applications for landlords subject to a selective licensing scheme.

The lender said it would consider cases in these circumstances provided there are no issues highlighted by the valuer. Local authorities can choose to implement selective licensing for landlords in the area in order to improve the quality of private rented homes and reduce anti-social behaviour.

Selective licensing schemes last up to five years and can cost the landlord up to £1,000.

A Natwest spokesman explained that the previous decision not to lend on selective licensing properties was a historic part of the criteria and changes across local authorities had prompted the lender to review its conditions.

In 2013 when Newham became the first local authority to implement selective licensing, an RBS spokesman said it was “the longstanding policy” of the group “not to lend where there is a requirement for a special license for a buy-to-let property”.

Paul Kane, acting head of sales, said: “Selective licensing has been an issue for brokers in specific parts of the country where they have been introduced by local authorities. With the expectation that the number of schemes will increase over the coming months and years, I am pleased that we are now able to accept applications from buy-to-let investors who want to buy a property in an area where they require a selective licence.”

Natwest has also made a number of reductions on its lower loan-to-value (LTV) residential purchase and remortgage deals. Highlights include reductions on its two-year fixed rate mortgage at 60%, 70% and 75% LTV from 5 basis points to 9 basis points (bps).

Its fee-free five-year 60% LTV fixed rate deal has been reduced by 12bps and the same deal with a £995 product fee has also seen a rate cut of 4bps.

Two-year tracker deals at Natwest with LTVs ranging from 60% to 75% have had rates slashed from 5bps to 9bps.

“The mortgage marketplace is currently a very dynamic one thanks to the buoyancy of the sector,” added Kane. “Having reviewed our portfolio, we are making rate changes to maintain the correct balance of business we receive. We have been very busy in the last few months thanks to the popularity of our products and look forward to an equally busy second half of the year” he said.

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