The Nottingham has loosened its buy-to-let and limited company BTL criteria.
The changes include lower interest cover ratio figures for BTL and reduced calculation rates for standard BTL and limited company applications, as well as the removal of required minimum incomes.
A full breakdown of the mutual’s criteria changes cover:
- Limited company interest cover ratio five-year calculation rate at 3.35%, from 5.50%
- No minimum income required, from £25,000 a year for a single applicant and £40,000 joint application
- No requirement to see last month’s personal and business bank statements as standard
- Standard BTL interest cover ratio at 145%, from 165%
- Standard BTL interest cover ratio five-year calculation rate at 3.45%, from 3.95%
- Maximum loan to value for lending on flats raised to 75%, from 65%
- Removal of all Covid-19-related criteria
The lender says the changes come after feedback from brokers.
The Nottingham head of mortgage product Christie Cook says: “We’re delighted to bring such positive criteria changes to life, and believe they will make placing buy-to-let and limited company buy-to-let cases with us more accessible and cohesive for brokers than ever before.”
Last week, the mutual said it will introduce product transfers for brokers who retain the lender’s existing customers at the end of the fixed-rate period of their mortgage.
The process will be fully digitised to allow brokers online access to their client’s current mortgage information before proceeding to application submission.
The lender said that brokers will be paid on successful applications that are submitted on behalf of existing customers from July onwards.
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