Newcastle enhances residential and buy-to-let lending criteria

The maximum loan size for residential applications has been increased to £1.5m and to £1m for buy-to-let cases.

Changes to its buy-to-let criteria also include an increased maximum LTV of 80% and the introduction of a new split approach to affordability which applies a different Interest Coverage Ratio depending on the applicant’s status as a lower or higher rate taxpayer.

Franco Di Pietro, head of intermediary mortgages, said: “We’re always looking to review and enhance our underwriting approach across all areas in response to broker feedback. We take a common sense approach to lending and believe these changes will allow us to better support brokers and their clients as they move up the property ladder.

“To further enhance our lending policy we’re also taking a new approach to affordability for buy-to-let clients, recognising the split between lower and higher rate taxpayers. I’m confident these criteria changes along with our continued flexible approach to underwriting will give customers excellent new borrowing options.”