NatWest Simplifies the Processing of Buy-to-Let Mortgages
Although NatWest recently offered three individual levels of cover for the buy-to-let market, it has recently been announced that the requirement will revert to a simple one. It has been thought that offering more than one option led to confusion. Therefore, the requirement for NatWest’s portfolio will be the 125% minimum rental cover, which will be based upon the Bank of England’s rate. The goal is to make it easier for buy-to-let investors to do business with NatWest as well as making it easier for NatWest to complete its business.
One of the immediate changes that should result from this decision should be the potential for NatWest to complete all of its buy-to-let real estate transactions in a more timely fashion. The demand for buy-to-let mortgages has remained high despite the uncertain climate in the buy-to-let market. In fact, the failure of other lenders to continue to offer and provide buy-to-let mortgages to potential buy-to-let investors has increased the demand on those lenders who still do so.
Therefore, the increase in demand has led to an enormous amount of work to process all of the applications for buy-to-let mortgages. Limiting the rental income requirement to the 125% minimum rental cover rather than allowing it to remain at three levels calculated with the applicant’s gross income in mind should decrease the processing time for all buy-to-let mortgages. This strategy of managing their buy-to-let mortgage business area should also protect NatWest’s reputation and level of service.
