"Today’s change will bring TSB in-line with other lenders in the market."
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.
Any applications submitted before 8pm on Wednesday 29 June will not be impacted.
Newcastle Building Society, Barclays, and Foundation Home Loans have all recently increased their buy-to-let interest coverage ratio to 145%.
TSB intermediary director, Roland McCormack, said: “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.”
