Important Buy to Let lending criteria changes

On Monday 9 September 2019, we’re making some important changes to our Buy to Let (BTL) affordability rates and rental covers.

Buy to Let lending criteria changes

We’re simplifying our lending criteria by:

  • reducing the affordability rate for remortgages without capital raising (£4£) to 4.00% (currently 5.00%).
  • removing the qualifying question ‘Is the current mortgage balance the same or less than it was on 31 December 2016?’. This means all remortgages without capital raising (£4£) will now qualify for the reduced 4.00% affordability rate.
  • removing the 125% rental cover and instead using our standard 130%/145% based on income tax bands.
  • reducing the affordability rate where a 5 year fixed rate is taken for the whole loan on a Buy to Let to 4.00% (currently 4.50%).

We’ve updated the following table showing our minimum rental cover at the BTL affordability rate on an interest only basis:

Application type

Rental cover

Buy to Let affordability rate

At least one applicant's income tax band is 20% or less¹

All applicants' income tax bands are 40% or 45%

Less than 5 year products

5 year fixed

Purchase or remortgages with capital raising









(no porting)

Remortgages without capital raising (£4£)


¹The income tax band selected should take into account profit on rental income for all properties that the applicant will own on completion.

The Buy to Let calculator, lending criteria and other supporting documents will also be updated to support these changes.

Pipeline rules

All full mortgage applications (FMAs) already submitted on Introducer Internet by 9pm on Saturday 7 September won’t be affected and will continue to be progressed on our existing Buy to Let lending policy.

Any FMAs submitted from 6am on Monday 9 September, or where a material change is made to an FMA originally submitted before 9pm on Saturday 7 September, will be assessed using the new Buy to Let lending policy.