Landbay is introducing changes to its background underlying portfolio stress tests, amended from 125% at 5.5% to 125% at 5%.

The buy-to-let lender says these new rates “reflect a more prudent approach to lending to portfolio landlords”. If an application fails the test, dependent on the case, Landbay may consider applications using up to 10% of the declared income, subject to a minimum personal income of £100,000.

Last week Landbay last week extended its lending criteria to now include first time landlords who do not currently own a residential property, designed to help professional people who are renting to invest in property themselves and get a foot on the housing ladder.

Paul Brett, managing director of intermediaries at Landbay, said: “The buy-to-let market is set to become more complex in 2018, and as landlords move to navigate the changing environment, so too must lenders ensure that their approach to lending is robust.

“This is why we have chosen to refine our underlying portfolio stress tests, demonstrating our ongoing commitment to portfolio landlords.”