In its exclusive and core range, selected two-year fixed rates will rise by around 0.12 per cent and start from 5.21 per cent, while selected five-year fixed rates will go up by around 0.11 per cent and begin from 4.7 per cent.
On the buy-to-let side, selected two-year fixed rates will go up by around 0.12 per cent and start from 4.87 per cent.
Selected five-year buy-to-let fixed rated will rise by around 0.11 per cent and begin from 4.71 per cent.
All other residential and buy-to-let fixed rates will climb by up to 0.12 per cent.
Within its product transfer range, the lender said that all fixed rates would increase by 0.12 per cent and begin from 4.58 per cent.
Virgin Money said that brokers should send in their applications as soon as possible if they were applying on behalf of a customer.
Natwest BTL stress rates rise by up to 1.5 per cent
Natwest will increase the buy-to-let stress rates within its decision in principle (DIP) and full mortgage applications from today.
The lender has upped the buy-to-let stress rate for two-year fixed rate buy-to-let deals from 6.7 per cent to 8.1 per cent.
The buy-to-let stress rate for five-year fixed rate has risen from six per cent to 6.89 per cent whilst the stress test for a like-for-like remortgage has gone from six per cent to 7.54 per cent.
Brokers noted that these increases would be very challenging for landlords to meet and would rule Natwest out as a lender in many instances.
Michelle Lawson, director and mortgage protection adviser at Lawson Financial, said that it would be “almost impossible for someone to meet criteria”.
She explained for a £10,000 interest-only buy-to-let mortgage with Natwest, the rental would need to be a minimum of £843.75 per month for a two-year fixed for a basic or low rate taxpayer or £987.78 for a high rate tax payer.
For a five-year fixed rate a basic or low rate taxpayer would need a rental income of £785.41 and £848.25 for a higher rate taxpayer.
“This is also why rents are constantly increasing and many landlords are starting to exit and sell up as landlords are being pressed by the lenders/markets as an unintended consequence as well as much heavier regulation and other costs. As always, it will work for some but not everyone,” Lawson noted.
Natwest was contacted for comment.
