The documentation simplifications are:
- For loans up to £500,000 and with a maximum loan-to-value (LTV) of 75 per cent, proof of income is no longer required.
- For loans greater than 75 per cent loan to value or where the maximum aggregate buy to let borrowing is between £500,001 and £1m, only the latest payslip and personal bank statement for the principal applicant are required.
- No documentation required from second and subsequent applicants
- A copy of the letting agreement is no longer required
Andy Gray, head of mortgages at Woolwich said: “Our simplified lending policy builds on the changes we made in September to rental calculation. With today’s improvements we think we now have a market leading proposition which shows our commitment to this market.”
- In addition to the changes to documentation the key lending facts on Woolwich BTL are:
- Rental cover criteria - minimum interest cover 125 per cent of which the interest is calculated at a nominal rate of 5 per cent.
- Borrowers can build a portfolio of properties up to an aggregate of £5 million with no limit on the number of properties.
- Loan on individual properties up to £2.5m considered.
