For rental coverage calculations, Natwest will raise the interest coverage ratio to 145%, while the interest rate used will remain at 5.5%. All changes to Natwest’s buy-to-let affordability assessment will be implemented from 1 January.
When submitting an application, customers will need to submit details of their personal income alongside current and expected rental income.
To help brokers assess their client’s affordability, Natwest has also launched a new online buy-to-let affordability calculator. The calculator, which should be used as a guide only, is the same as that used by Natwest’s underwriters to give brokers and their clients a degree of certainty in the process.
In addition, applications that are submitted and not immediately declined from 1 January to the end of February will receive an automatic refer decision while the lender completes system updates. Natwest said that this decision does not mean an application is likely to be declined, but instead will receive an automatic accept decision until underwriters have assessed it.
