"With the upcoming changes to mortgage tax relief for landlords, there will be a detrimental impact for many buy-to-let investors."
Its reference rates remain unchanged. The new calculation will be applied to all Buy to Let applications submitted from 8pm on Wednesday 13 July.
Coventry says it has made the adjustments to its lending policy in advance of the changes to landlord tax relief which take effect from April 2017.
TSB, Newcastle Building Society, Barclays, and Foundation Home Loans have all recently increased their buy-to-let interest coverage ratio to 145%.
Kevin Purvey, Director of Intermediaries, said: "With the upcoming changes to mortgage tax relief for landlords, there will be a detrimental impact for many buy-to-let investors. We have made the decision to adjust our rental calculation to ensure that applicants can afford their mortgage both now and in the future.”
