Newcastle Intermediaries has made several changes to its residential and buy-to-let lending criteria that include lifting maximum loan amounts and loan-to-value ratios.

It says the maximum loan size for residential applications has been raised to £1.5m and £1m for BTL products.

The broker-only unit adds that its updated buy-to-let criteria includes an increased maximum of 80% LTV and introduces a new split approach to affordability, which applies a different interest coverage ratio depending on an applicant’s status as a lower or higher rate taxpayer.

Newcastle Intermediaries head of intermediary mortgages Franco Di Pietro says: “We’re always looking to review and enhance our underwriting approach across all areas in response to broker feedback.

“We take a common sense approach to lending and believe these changes will allow us to better support brokers and their clients as they move up the property ladder.

“To further enhance our lending policy we’re also taking a new approach to affordability for buy-to-let clients, recognising the split between lower and higher rate taxpayers.

“I’m confident these criteria changes along with our continued flexible approach to underwriting will give customers excellent new borrowing options.”

Earlier this week, the unit cut rates on its large loan range by up to 0.45%.

It said that at up to 75% LTV, the two-year discounted rate is priced at 1.90% for loans between £1m and £1.5m, a 0.45% cut in the previous rate.