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The Nottingham changes BTL and limited company criteria

  • 19/05/2022
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The Nottingham changes BTL and limited company criteria
The Nottingham has made a series of changes to its buy-to-let (BTL) and limited company BTL criteria, including knocking off all Covid-related criteria and minimum income requirements.


The changes, off the back of broker feedback, include lower interest cover ratio (ICR) figures for BTL, and reduced calculation rates for standard BTL and limited company applications.

The Nottingham has dropped its limited company ICR five-year calculation rate to 3.35 per cent, down from 5.5 per cent.

The mutual’s standard BTL ICR is now 145 per cent, down from 165 per cent previously.

The standard BTL ICR five-year calculation rate has also been reduced to 3.45 per cent from 3.95 per cent.

The maximum loan to value (LTV) for lending on flats has been raised to 75 per cent, up from 65 per cent prior.

There is now no minimum income requirement. This was previously £25,000 per year for a single applicant and £40,000 for joint applicants.

There is no longer a standard requirement to see a borrower’s last month’s personal and business bank statements. The Nottingham has also removed all Covid-related criteria, which included things such as a requirement to see three months’ personal and business bank statements, and a cap on lending of 80 per cent annual income for people who had accessed Covid support grants.

Christie Cook (pictured), head of mortgage product at The Nottingham, said: “We’re delighted to bring such positive criteria changes to life, and believe they will make placing buy-to-let, and limited company buy-to-let cases with us more accessible and cohesive for brokers than ever before.

“In turn, it’s a major positive for their customers and is the latest step in us providing competitive and practical products, services and processes in the BTL space.”


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