Coventry for Intermediaries (Coventry Building Society) is the latest lender to increase its rental calculation on BTL mortgages, moving from 125% to 140%.

This is in advance of the changes to landlord tax relief which take effect from April 2017.

Kevin Purvey, director at Coventry for 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.”

This follows moves from Barclays and Nationwide increasing their rental calculation from the industry standard of 125%. Barclays moved up to 135%, while Nationwide’s specialist subsidiary The Mortgage Works has gone up even further to 145% and also tightened the LTV to 75% from 80%.

Meanwhile, Dudley Building Society has moved to a tiered basis dependent on LTV - 125% for up to 70% LTV, 130% up to 75% LTV and 140% for flats regardless of LTVs.