The bank has improved its criteria for
This change marks the bank's first step in its specialist mortgages journey
In a positive move for borrowers, the bank has reduced its stress test rate on five year BTL mortgages, from 5.5% to 4.5%, given the longer term nature of the product. The new rate compares favourably with its competitors in the market.
In addition, the maximum age for a BTL applicant at the end of their term has been increased from 80 to 85. The bank has made this decision to assist more borrowers who may want to continue using a BTL property to help with their retirement planning.
Although the bank already has a comprehensive BTL offering - including having no minimum income requirements1, allowing up to four applicants and enabling them to use top slicing from their earned income - the new changes offer greater flexibility than ever before. This marks a meaningful first step as the bank embarks on plans to grow into a truly specialist lender over the next 12 months.
Notes to editors
1 Subject to rental void plausibility checks.
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