It introduces new tool and processes
NatWest has announced a series of changes to its buy-to-let mortgage proposition, aimed at simplifying and streamlining applications for brokers and their landlord clients.
Key changes include the introduction of a new BTL affordability calculator, which features just 11 questions for the majority of customers. This tool is designed to provide brokers with a quick and easy way to calculate landlord affordability.
NatWest has also revised its portfolio landlord assessment process, which will now focus on loan-to-value (LTV) ratios and rental income for both the subject property and the landlord’s portfolio. This change eliminates the need for a personal income assessment for portfolio landlords.
The bank has also reduced the packaging requirements for these landlords, with underwriters no longer required to validate personal income or commitments. Instead, brokers will handle income validation and retain the documentation, aligning with the process for small landlords.
Another notable update is the introduction of dynamic product stress rates for BTL applications. The stress rate and maximum loan amount will now be determined by the chosen product rate and term, allowing for personalised affordability assessments.
No maximum loan amount or stress rate will be fixed until an application is submitted. A lower stress rate, influenced by the application type, product rate, and term, will result in a higher maximum lend.
“We want brokers to know that the changes we’ve made to our BTL mortgage proposition make us even more reliable, consistent and flexible for their landlord customers,” said Brad Fordham, head of mortgage distribution at NatWest. “In particular, the changes to our BTL affordability calculator make it quicker and easier than ever for brokers to calculate landlords’ affordability.”
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