For LTVs up to 65% the rental cover calculation will be 145% or 5% of the pay rate, whichever is higher. For LTVs between 65.01% and 75% LTV the calculation will be 145% or 5.5% of pay rate.
The change will also apply to residential mortgages where the borrower also has a buy-to-let loan.
The lender advised that any applications submitted before 8pm on Wednesday 29 June will not be impacted.
Roland McCormack, TSB intermediary director, had this to say: “Today’s change will bring TSB in-line with other lenders in the market. We will continue to work with brokers, through our award-winning service, to best guide landlords through this change.”