ONLY FOR USE MY MORTGAGE INTERMEDIARIES

Following a number of recent announcements by Lenders in relation to the way BTL applications are assessed, NWIS has taken the opportunity to issue the following summary, in relation to the key aspects of their Assessment.

  • Rental income meets calculation – if the expected rent from the property meets NWIS rental cover calculation of 5% x 145%, subject to a maximum loan to income of 4.99 times income, maximum LTV of 75% and an income affordability assessment, NWIS can proceed with the application.
  • Top-slicing where there is a shortfall on rental income – if the expected rent from the property does not meet the 5% x 145% rental cover calculation; NWIS can take the applicant’s free personal income into account to make up the shortfall. The expected rent must meet a minimum 5.5% x 125% rental cover calculation.
  • Online buy-to-let affordability calculator – the amounts of an applicant’s personal income, financial commitments and other committed expenditure need to be entered into the affordability calculator (as with the residential calculator) along with the current and expected rental income. The calculator will show the maximum loan amount that can be offered, which incorporates NWIS criteria and, if appropriate, the applicant’s free income.

It’s worth noting that if the amount of rental income the applicant expects to receive exceeds the 5.5% x 145% calculation, NWIS will take into account the surplus rental income when assessing the 4.99 times income maximum and £25,000 minimum income requirement.

Please use this as a guide to the maximum amount NWIS can lend prior to submitting an application.

  • REFER decisions. When a buy-to-let application is submitted, Advisers will receive either a DECLINE or REFER decision. NWIS is not able to provide a confirmed ACCEPT decision until the underwriters have assessed the application.

If you would like to discuss how NWIS can help your Buy-to-Let Customers, then please call your Business Development Manager, speak to Live Talk or visit the NWIS Website

http://intermediary.natwest.com/