NatWest has reduced its interest coverage ratio (ICR) and increased the maximum age at the end of term for buy-to-let applications.

The interest coverage ratio has been cut from 135% to 125% for basic rate taxpayers.

The lender also detailed that rental income will no longer be used to achieve the minimum eligibility criteria of £25k per annum.

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All other sources of acceptable income will remain the same.

In addition, the lender has upped the maximum age at the end of the term for buy-to-let applications, from 70 to 80.

For applications where the term exceeds the customer’s retirement age, only the rental income from the property being purchased or remortgaged will be used.

This affordability applied to either one or both of the customers.

The changes are as a result of broker feedback, and will come into place from 23 November.

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