Natwest removes minimum income and lowers stress test for BTL customers

Natwest removes minimum income and lowers stress test for BTL customers


The move will open up BTL borrowing to new and existing customers.

Small landlords and like-for-like remortgage cases will no longer be required to provide proof of income on submission. Applications will be put through a reduced underwriting process which means a faster broker and customer journey.

The stress test rate is now set at 4.5 per cent for five-year products and like-for-like remortgages.

New and existing BTL borrowers can also apply for additional borrowing for any legal purpose except gambling, any form of business purpose or unsecured debt consolidation.

Previously, landlords could only capital raise for permanent home improvements to the mortgaged property, to buy out an existing title holder or partner or to raise money to buy another property.

The lender has previously launched two implication indication calculators, which could benefit customers looking to remortgage with Natwest.

Luke Christodoulides (pictured), head of corporate accounts at Natwest, said: “We’re pleased to further support the BTL market and help customers with their additional borrowing needs. These changes follow on from the simplifications we made to our BTL proposition earlier this year and show our commitment to this important market sector.”

The lender has also increased the rates of select shared equity, BTL and green mortgage products across it new and existing range by up to 0.15 per cent.

This includes a two-year fixed rate shared equity product at 70 per cent loan to value (LTV), which has increased from 1.48 per cent to 1.63 per cent. It has £500 cashback.

In its BTL range its two-year fixed rate purchase product at 70 per cent LTV has increased from 1.48 per cent to 1.53 per cent.

On the green mortgage range, its five-year fixed rate at 60 per cent LTV has gone from 1.5 per cent to 1.6 per cent. This product comes with a cashback £350.

The trio of products are subject to a £995 fee.