The original calculation was 125% @ 5% for background BTL’s to make sure they were self-financing.

NEW CALCULATION – A stress of the balance at a pay rate of 5.5% x 145%.

If the rent is in excess of this, absolutely fine. If there is a shortfall, it must be included in affordability.

(Please note on your mortgage grids that this will also apply for Let to Buy applications on the residential side where there will be a background BTL).

When assessing an application where there are buy to lets in the background, please apply this new stress to the buy to let balances.  Any resultant shortfall(s) should be factored into affordability.

Please contact The Marsden with any queries on 01282 440517