Teachers Building Society has widened its buy-to-let criteria with a range of measures – as the income coverage ratio for lower rate taxpayers has been reduced from 145% to 125%.
At the same time the society has increased the maximum age at the end of the term from 75 to 83 and raised the maximum term of the mortgage from 35 to 40 years.
The lender also clarified that the remortgage loan-to-value of existing buy-to-lets with all lenders is 75%. The max LTV previously hadn’t been established.
Andy Yates, business development manager at Teachers Building Society, said: “In addition to the recent launch of our holiday let criteria, we have made some changes to our buy-to-let criteria.
The increase to our maximum age and the reduced rental coverage are designed to improve our criteria, support landlords looking to purchase or remortgage and act on our broker feedback.
“Reducing the coverage ratio will help support landlords following cuts to buy-to-let tax relief introduced by the government in 2017 which become fully implemented in the 20/21 tax year.”