Newcastle becomes latest lender to up income ratio to 145%
Newcastle Intermediaries has followed TMW and Foundation Home Loans in raising its buy-to-let income ratio from 125% to 145%.
The society has also reduced the number of buy-to-let properties it will lend on from five to three.
The change won’t affect applications submitted before 31 May.
Steve Carruthers, Newcastle’s head of mortgage distribution, said: “As a responsible lender we are keen to ensure that customers are well positioned to deal with these changes in advance.”
Newcastle said its criteria adjustments reflect the changes to mortgage tax relief that will affect individual buy-to-let investors from 1 April 2017 and the requirement to ensure that all costs associated with a rental property are fully accounted for.