NatWest lowers BTL stress rate and simplifies criteria

The bank will now use an affordability stress rate of 4.5 per cent for landlords choosing to fix for longer or remortgaging without raising any further capital.

Alongside this change, NatWest has removed its loan-to-income cap for small landlords and like-for-like applications which means the maximum loan amount will be based on the property’s rental earnings and the landlord’s tax band.

Small landlords and like-for-like remortgage borrowers will also benefit from a reduced underwriting process and no proof of income is required when the application is submitted.

Luke Christodoulides, (pictured) head of corporate accounts at NatWest Intermediary Solutions, said: “We have been working hard to simplify our buy-to-let approach and have listened to feedback from brokers and our staff on where we could improve.”