Natwest Intermediary Solutions will now consider buy-to-let mortgage applications where a ‘selective licensing scheme’ is in place where the property is situated.
A selective licensing scheme is where local authorities can choose to implement licensing for landlords in the area to improve the quality of private rented homes and reduce anti-social behaviour.
The lender will consider applications provided there are no issues highlighted by the valuer. It also introduced relatively small rate increases, of between 4 basis points to 12 basis points, on a number of its lower loan-to-value residential deals.
For two-year fixed rate deals with no product fee at 60 per cent loan-to-value the rate is increasing by 5bps from 2.29 per cent to 2.34 per cent, at 70 per cent LTV it increasing by 5bps from 2.34 per cent to 2.39 per cent and at 75 per cent LTV it is increasing by 9bps from 2.42 per cent to 2.51 per cent.
For five-year fixed rate deals with a £995 product fee the 60 per cent LTV deal is increasing by 4bps from 2.19 per cent to 2.23 per cent, while with no product fee the rate is increasing by 12bps from 2.78 per cent to 2.9 per cent.
For two-year tracker deals with no product fee the 60 per cent LTV deal will increase by 5bps from 2.19 per cent to 2.24 per cent, the 70 per cent LTV product increases by 5bps from 2.24 per cent to 2.29 per cent and the 75 per cent LTV deal increases by 9bps from 2.32 per cent to 2.41 per cent.
Paul Kane, acting head of sales at Natwest Intermediary Solutions, said that selective licensing has been an issue for brokers in specific parts of the country where it has been introduced by local authorities.
“With the expectation that the number of schemes will increase over the coming months and years, I am pleased that we are now able to accept applications from buy-to-let investors who want to buy a property in an area where they require a selective licence.
“Having reviewed our portfolio, we are making rate changes to maintain the correct balance of business we receive.”
The changes to Natwest buy-to-let deals comes after John Charcol’s senior technical manager Ray Boulger warned the Budget will force lenders to reassess their affordability calculation for buy-to-let mortgages.
emma.hughes@ft.com
