"In particular, the changes to our buy-to-let affordability calculator make it quicker and easier than ever for brokers to calculate landlords’ affordability."
- Brad Fordham, head of mortgage distribution at NatWest
NatWest has announced a series of changes to its buy-to-let mortgage proposition, making applications simpler and easier for brokers and their landlord clients.
The bank is launching a new streamlined buy-to-let affordability calculator which now contains just 11 key questions for the majority of customers to ensure brokers are provided with a quick and easy way to calculate affordability.
NatWest is also introducing a simplified portfolio landlord assessment, based on LTV and rental income on both the subject property and their portfolio.
It will remove all personal income assessment for portfolio landlords and will also reduce the packaging requirements for portfolio landlords, as underwriters will not need to validate personal income or commitments. Going forward, brokers will be responsible for validating customers' income and retaining the documentation which is the same process as the bank’s small landlord journey.
In addition, NatWest is introducing dynamic product stress rates to its buy-to-let applications. This means that the stress rate and the maximum loan amount will be driven by the product rate chosen and the term of that product, meaning that the landlord’s affordability is personalised to them. No maximum loan amount or stress rate will be locked in until an application has been submitted. The lower the stress rate (which is driven by application type, product rate and term), the higher the maximum lend will be.
Brad Fordham, head of mortgage distribution at NatWest, said: “We want brokers to know that the changes we’ve made to our buy-to-let mortgage proposition make us even more reliable, consistent and flexible for their landlord customers. In particular, the changes to our buy-to-let affordability calculator make it quicker and easier than ever for brokers to calculate landlords’ affordability.”
