NatWest introduces buy-to-let lending cap
NatWest and Royal Bank of Scotland (RBS) have introduced a buy-to-let mortgage cap designed to try and limit larger mortgage loans and dampen demand for investment properties.
The new loan-to-income cap will limit the amount of money applicants can borrow to 4.99 times salary. Although, the level of rent the property generates will still be the primary benchmark for working out how much the bank will lend.
Aaron Strutt, product manager at Trinity Financial, says: “It is quite rare for a lender to install a buy-to-let salary cap although RBS and NatWest are trying to target some of the wealthier borrowers.
“They have some of the lowest rates in the market and in order to qualify for their mortgages you will need to put down a 25% deposit. The maximum loan size remains at £500,000.”
NatWest for Intermediaries leading two-year tracker rate is 2.25% and it has a £1,995 arrangement fee. Borrowers will need a 40% deposit and to qualify and the APR is 4.7%. After the two-years the mortgage reverts to their buy-to-let standard variable rate, currently 4.5%.
If you would like help to secure a buy-to-let mortgage, call Trinity Financial on 020 7016 0790. Or fill in our enquiry form and we will call you back.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
