NatWest is introducing a number of changes to how it assesses portfolio landlords ahead of new Prudential Regulation Authority underwriting standards.
From 11 September, the bank will require additional information on other properties to enable a full affordability assessment and the same stress rate will be applied to all other mortgages as well as the current application.
The PRA is bringing in tougher rules for portfolio landlords – those with four or more rental properties – on 30 September.
It expects firms to adopt a more specialist underwriting process to reflect greater complexity of lending to portfolio landlords.
All customers will be required to meet the NatWest’s standard buy-to-let minimum income of £25,000.
Graham Felstead, head of intermediary mortgages at NatWest Intermediary Solutions, said: “The buy-to-let market continues to be important for customers and brokers and it’s one that we will continue to support. The new PRA requirements have given us the opportunity to review our whole approach to the buy-to-let sector and I am delighted that we will continue to lend to both non-portfolio and portfolio landlords with an enhanced proposition for intermediaries and their customers.
“With any change comes an element of uncertainty, but by making our intentions clear now and developing our calculator we hope that brokers and their customers can be reassured that they will be able to count on NatWest as one of their key lenders in this market. We will communicate clearly with intermediaries over the coming weeks about what changes they need to make and what we will be doing differently so that we can have a smooth transition come 11 September when these changes are implemented.”
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