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Buy to Let Update.

22 December 2016

This week has seen many more lenders communicating their changes to the income stress levels as required by the PRA.

All details have been updated on our Buy to Let Matrix which can be found here.

Here are a few more of the changes received this week:

Axis Bank

Personal Borrowers

Term of Less than 5 Years 145% against an interest rate of pay rate +2% with a floor of 5.5%

5 Years or more Fixed Term 145% against an interest rate of pay rate

Re-mortgages on a like for like basis must meet a stress of 125% @5%, in addition the customers portfolio must meet the new stress of 145% @5.5%

Pipeline Cases -  Any cases which are at AIP stage prior to 01 January, and have all documentation required to underwrite the case uploaded by 13 January, may be assessed at the current stress rate of 125% @5%.

Metro Bank

Metro Bank will be increasing their interest cover ratio from 125% to 140% from 30 December. The stress rate will remain unchanged at 5.5%

The Nottingham

From Thursday 22 December The Nottingham will be changing their Buy to Let lending policy.

The new rental income must cover at least 145% of the interest part of the mortgage payment and this will be calculated at a stress rate of 4% on an interest only basis.


From 01 January Saffron will be applying the following minimum BTL rental calculation; 140% of pay rate stressed at 2%.

BTL fully packaged mortgage applications which have been assessed by underwriters by close of business on the 31st December 2016 will be considered on the current affordability assessment requirements.


From 01 January Ipswich will make the following changes to the way they assess BTL applications:

  • Interest Coverage Ratio – 145%
  • Interest Stress Rate – 2% over pay rate, with a 5.5% minimum rate
  • Fixed rates of 5 years will be stressed at pay rate

To secure current criteria, fully packaged applications need to be received by the Society no later than Friday 30th December.

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