Woolwich enhances buy-to-let rental calculations

20 September 2006
In order to provide a simpler and more competitive approach to rental calculation, Woolwich has announced an enhanced lending policy for its buy-to-let mortgages.

The lending arm of Barclays Bank will reduce minimum interest cover from 130 per cent to 125 per cent and interest will be calculated at a nominal rate (five per cent) instead of the product rate.

"The changes we have made to our lending policy show that we are committed to the buy-to-let market and we want to ensure our products are competitive in the market place," said Andy Gray, head of mortgages for Woolwich.

Mr Gray added that his company's products compared favourably with the majority of its major competitors' offerings and that Woolwich would continue to support those looking to enter the lucrative buy-to-let market.

The changes implemented would mean that a rental income of £750 a month could secure an investor a mortgage of up to £144,000, rather than just £122,750 under the previous scheme.

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