The changes from NatWest include:
A new calculator
The bank will launch a new streamlined BTL affordability calculator which now contains just 11 key questions for the majority of customers to ensure brokers are provided with a quick and easy way to calculate landlords' affordability.
A simplified portfolio landlord assessment
NatWest’s portfolio landlord's assessment will be based on loan to value (LTV) and rental income on both the subject property and their portfolio. It will remove all personal income assessments for portfolio landlords.
It will also reduce the packaging requirements for portfolio landlords and underwriters will not need to validate personal income or commitments. Going forward, brokers will be responsible for validating customers income, and retaining the documentation which is the same process as the bank’s small landlord journey – making the journey simpler.
Buy to let dynamic product stress rate
NatWest is introducing dynamic product stress rates to its BTL applications. This means that the stress rate and the maximum loan amount will be driven by the product rate chosen and the term of that product, meaning that the landlord’s affordability is personalised to them.
No maximum loan amount or stress rate is locked in until an application has been submitted. The lower the stress rate (which is driven by application type, product rate and term), the higher the maximum lend will be.
Brad Fordham, Head of Mortgage Distribution at NatWest, says: “We want brokers to know that the changes we’ve made to our BTL mortgage proposition make us even more reliable, consistent and flexible for their landlord customers. In particular, the changes to our BTL affordability calculator make it quicker and easier than ever for brokers to calculate landlords’ affordability.”
