New Street Mortgages reduces rental cover rates to 125%

New Street Mortgages has fresh buy-to-let criteria changes, including reducing its lowest rental cover rate from 145% to 125%.

From next Monday, the lender will tailor rental calculations to individual circumstances, taking into account a customer’s tax rate, property location, property price and if ground rent and service charges are payable.

An online calculator has been launched by the lender, while information is also presented in the infographic below, which explains the variations.

Jane Simpson, managing director of TBMC, said: “I am delighted a lender has listened to our feedback by giving buy-to-let customers leading edge criteria and great value for money deals. 

“Intermediaries and customers alike will welcome this comprehensive package of changes from New Street.”

New Street has also launched a £1 valuation fee across its mortgage range, saving consumers around £299.

Interest rates have also been reduced on the lender’s buy-to-let mortgages by up to 0.7%, with the two year fixed at 65% loan-to-value now available at 1.74%.

Steve Griffiths, sales and distribution director, The Northview Group, said: “Following the recent PRA changes in January which impacted Buy to Let mortgages, New Street has listened to a great deal of feedback from our intermediary partners on how we could improve our product offering to customers.

“We believe this extensive overhaul of our product range, offering bespoke lower rental calculations, price reductions of up to 0.7%, a new lower managed rate of 5% for five year fixed rates and £1 for all valuations will see our customers benefit from this great package.”

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