According to the lender, the new changes include an increase in maximum age at end of term to 83, an increase maximum term of mortgage to 40 years, on a standard BTL - coverage ratio for lower rate tax payers is reduced from 145% to 125% and an increase LTV for remortgage of existing BTL to 75%.
Andy Yates, Business Development Manager at Teachers Building Society, comments on the changes: “In addition to the recent launch of our Holiday Let criteria, we have made some changes to our BTL criteria. The increase to our maximum age and the reduced rental coverage are designed to improve our criteria, support landlords looking to purchase or remortgage and act on our broker feedback.
Reducing the coverage ratio will help support landlords following cuts to BTL tax relief introduced by the government in 2017 which become fully implemented in the 20/21 tax year.”
