TSB has increased the maximum age for buy-to-let applicants from 75 to 80 and made changes to how it assesses affordability.
Changes include a revision of the way annual mortgage interest is calculated.
For a standard buy-to-let application, if the landlord is going for a fixed rate of less than five years, it will use annual mortgage interest of either 5.5 per cent or the product rate plus two per cent.
For longer term products, annual mortgage interest of either 4.5 per cent or the product rate plus one per cent will be considered.
For like-for-like remortgages, annual mortgage interest of either 4.5 per cent or the pay rate plus one per cent will apply for all fixed rate terms.
Annual rental income should be more than 145 per cent of the annual mortgage interest to pass affordability.
These changes follow the launch of 95 per cent loan to value (LTV) residential mortgages, which were announced earlier today.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
