NatWest adds stress rates to BTL product changes

The changes are as follows:

• two-year fixed: stress rate increase from 6.7% to 8.10%
• five-year fixed: stress rate increase from 6% to 6.89%
• like-for-like remortgage: stress rate increase from 6% to 7.54%

It comes after the bank’s announcement yesterday of adjustments to end dates and rates.

The changes were made within NatWest’s Decision in Principle (DIP) and Full Mortgage Application (FMA).

Jamie Lennox, director at Dimora Mortgages, commented: “With higher stress testing it will rule out a large number of landlords being able to access them as a lender.

“The question is, will there be other lenders who follow in their footsteps?

“If they do, we will see a mass sell-off from landlords who are struggling to obtain new mortgage deals.”

Riz Malik, founder and director at R3 Mortgages, added: “I do not see Natwest's share of the BTL market increasing at these stress test levels.

“I am not sure how much of a market will be left if things continue at this rate.”

With many lenders withdrawing products at very short notice, Riz is one of the three mortgage brokers who are calling for lenders to sign a pledge to provide a minimum notice period of 24 hours.