TSB raises rental ratio to 145%

Ryan Bembridge

June 28, 2016

buy-to-let buy to let house

TSB has raised its interest rate coverage ratio for buy-to-let mortgages from 125% to 145%.

Applications will also be stress tested at 5% under 65% loan-to-value or 5.5% over 65% LTV if higher than the interest rate coverage ratio.

Pipeline applications with a decision in principle before 29 June won’t be affected unless the application is cancelled and another decision in principle is started.

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Roland McCormack, intermediary director at TSB, said: “Today’s change will bring TSB in-line with other lenders in the market.

“We will continue to work with brokers, through our award-winning service, to best guide landlords through this change.”