Important changes to our Buy to Let policy

05 December 2016

We have made changes to our Buy to Let lending policy which take effect from Monday 5 December. 

Interest coverage ratio

• Our interest coverage ratio is 145%.

Interest rate stress

• We have changed our interest rate stress from Buy to Let Variable Rate +1% (currently 5.74%) to 5.50% for all tracker and fixed rate products of less than five years.
• The stress rate for five year fixed rate products is the higher of the product rate or our Buy to Let Variable Rate (currently 4.74%).

Maximum mortgaged properties

• We no longer accept applications from customers with more than 11 mortgaged properties in total in their portfolio.
• The maximum portfolio limit of £2 million and/or four properties with Virgin Money remains unchanged.

When will these policy changes take effect?

Our new policy applies to any Buy to Let Decision in Principle (DIP) submitted on or after Monday 5 December.

Competitive products for your landlords

Alongside these policy changes, we continue to support Buy to Let landlords with competitive products. So whether your customers are keen to get into property or expand their portfolios, why not give them a helping hand with one of our headline deals?

• 2 year fixed rates at 60% LTV available from 1.59%
• 5 year fixed rates at 60% LTV available from 2.48%

And remember, all our Buy to Let deals come with £500 cashback.

What else do you need to know?

For full details of our current lending policy, view our A-Z Lending Policy or download our A-Z Lending Policy App, and get instant easy access to our policy on the go.