db has confirmed that it has changed the calculation of rental yield on the self-financing buy-to-let product which caters for up to twenty properties, and a relaxation of criteria on the Unlimited schemes.
For loans up to 85 per cent loan to value the rental coverage requirement is now 110 per cent of the opening new business rate rather than the rate the loan reverts to. For loans between 85 per cent and 90 per cent the requirement is 120 per cent.
On the Unlimited schemes the criteria has changed to allow an application where the borrower’s financial situation is stable at completion rather than for the three months beforehand and each application is individually underwritten by an experienced non-conforming underwriter.
Mark Bergin, director of sales and marketing at db mortgages, said: "We are delighted to announce this change to buy-to-let criteria, which will make the product more attractive and attainable. We also offer an income-based buy-to-let product for single properties where a rental yield is difficult to achieve.
"Our change to criteria for Unlimited schemes compliments the approach of individual underwriting on non-conforming applications, and reflects the strong presence we have with experienced underwriters in this sector. This change, coupled with increased procuration fees, offers good value to borrowers, brokers and packagers alike."
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