Buy-to-let mortgages are usually dependent on the likely rent that the property will earn compared to the rate paid on the mortgage, and rental income is typically required to be 125 per cent of the amount of interest that is paid out on the mortgage.
Bristol & West have reduced the interest rate that is taken into account when calculating affordability from nine per cent to 7.75 per cent. And, although this is not the actual rate that the borrower will pay, it means that rental income will not need to be so high to cover the mortgage.
Rachel Woollatt, group product manager of Bristol & West, said: "Our criteria is now more competitive making it easier to take out a Bristol & West buy-to-let mortgage. This, together with our highly competitive rates, will help people investing in property for the medium to long-term to gain a good return from their investment."
