Applications will also be stress tested at 5% under 65% loan-to-value or 5.5% over 65% LTV – whichever is higher.
TSB has raised its interest rate coverage ratio for buy-to-let mortgages from 125% to 145%.
Applications will also be stress tested at 5% under 65% loan-to-value or 5.5% over 65% LTV if higher than the interest rate coverage ratio.
Pipeline applications with a decision in principle before 29 June won’t be affected unless the application is cancelled and another decision in principle is started.
Roland McCormack, intermediary director at TSB, said: “Today’s change will bring TSB in-line with other lenders in the market.
“We will continue to work with brokers, through our award-winning service, to best guide landlords through this change.”
