Accord Mortgages has improved the interest coverage ratio (ICR) and interest coverage reference rate (ICRR) for landlords remortgaging where no additional capital is being raise.
The lender’s new ICR rates for brokers whose landlord clients wish to do a like-for-like remortgage are:
- 125% at a stressed rate of 4.50% for basic and zero rate taxpayers, applicable to all products
- 140% at a stressed rate of 4.50% for higher and additional rate taxpayers choosing less than five-year product
- 145% at a stressed rate of 4.00% for higher and additional rate taxpayers choosing a five-year or longer product
All the lender’s other ICR/ICRR rates remain unchanged.
Nicola Alvarez (pictured), senior manager for new propositions at Accord Mortgages, said: “We’re committed to evolving our buy-to-let offering to give brokers and their clients more choice. Reducing our ICR/ICRR for like-for-like remortgaging landlords to enhance affordability and potentially be able to lend more to, further demonstrates this.
“It’s the latest positive change we’ve made to our buy-to-let systems, processes and criteria that places us firmly as a buy-to-let lender, not just a lender that does buy-to-let.”