Currently rents have to cover 125% of mortgage interest payments or a notional rate of 5%, whichever is higher.
But after the changes this will revert to 5.49% when higher than 65% loan-to-value, while a notional rate of 4.99% will be used when below 65% LTV.
With 5-year fixed rate products the higher of a 4.99% notional rate or the product rate will be used.
BM Solutions indicated that they wanted to make sure they lend responsibly.
Phil Rickards, head of BM Solutions, said: “We monitor our criteria and processes continuously.
“This change ensures landlords have sufficient rental coverage for their buy-to-let mortgage, importantly there’s no change to the application process and the calculations will be made automatically.
“However, in a rapidly changing environment we want to give advisers as much notice as possible.”
