BM Solutions has opted to maintain its rental coverage ratio at 125% despite the upcoming changes to mortgage tax relief and the PRA consultation on underwriting standards.
However for higher and top rate customers the rental coverage ratio will be “relative to the customer’s individual circumstances”.
A host of other buy-to-let lenders have raised their coverage ratios, including TSB which increased its minimum ratio from 125% to 145% in June.
BM Solutions has also loosened affordability criteria and launched a rental income calculator.
The buy-to-let lender has increased its maximum lending age from 75 to 80 and removed its maximum five bedroom policy, though this still applies on single assured shorthold tenancies.
It described its rental income calculator as ‘intelligent’ and built around a borrower’s individual circumstances.
Phil Rickards (pictured), head of BM Solutions, said: “I’m excited that after investing considerable time and resource in a tailor-made solution rather than a one size fits all approach, we continue to support sustainable buy-to-let lending for borrowers.
“I’m confident that our approach will continue to help brokers write good quality business.
“While engaging and listening to their needs, we have put our energy into a solution which leads the market and helps navigate a changing environment backed up by the same high level of service that brokers have known for more than a decade.”