NatWest will lend to landlords with up to 10 buy-to-let properties at some stage in the final quarter of the year – up from four – in response to tougher rules from the PRA.
Firstly from September 11 the lender will also introduce a buy-to-let calculator, valuation service and demand more information on landlords’ experience.
Graham Felstead, head of intermediary mortgages, NatWest Intermediary Solutions, said: “The new PRA requirements have given us the opportunity to review our whole approach to the buy-to-let sector and I am delighted that we will continue to lend to both non-portfolio and portfolio landlords with an enhanced proposition for intermediaries and their customers.
“With any change comes an element of uncertainty, but by making our intentions clear now and developing our calculator we hope that brokers and their customers can be reassured that they will be able to count on NatWest as one of their key lenders in this market.
“We will communicate clearly with intermediaries over the coming weeks about what changes they need to make and what we will be doing differently so that we can have a smooth transition come 11 September when these changes are implemented.”
From 11 September NatWest will ask portfolio landlord customers (with at least four buy-to-lets) to provide information on their buy-to-let and residential properties.
The lender’s valuation service will assess rental demand and income for all other properties being let and the results will be used to validate affordability.
By the fourth quarter NatWest will introduce a revised interest coverage ratio calculation of 5.5% x 135%, reduced from 5.5% x 145%.
In all cases expected rent will have to meet a minimum rental cover calculation of 5.5% x 125%.