"We are increasing our maximum LTV to 75% for the right type of deals - the right properties, the right yields and the right borrowers."
All of the Bank's buy-to-let, HMO and semi-commercial deals are eligible up to 65%.
At 70% LTV, borrowing is available on a maximum loan size of £3m and on increased ICR hurdles of 10%, e.g. 125% for a limited company borrower is raised to 135%.
At the new maximum LTV of 75% LTV, the maximum loan size is currently £550,000 (or £750k inside M25) on an increased ICR of 15%.
At 75% LTV, the borrower must have a buy-to-let track record and have taken no payment holidays across their portfolio. The property must have been used as a rental property recently and new builds and studio flats are excluded.
Charles McDowell, managing director at HTB, said: “It is more important than ever that we continually review our lending criteria as more information comes to light. With immediate effect we are increasing our maximum LTV to 75% for the right type of deals - the right properties, the right yields and the right borrowers."
