Accord Mortgages is broadening its age criteria, to support to new landlords and those who want to use their property or portfolio to provide an income into retirement.
The updates include:
- Minimum age reduced from 25 years old to 18 years old
- Maximum age at application increased from 70 years old to 75 years old
- Maximum age at term expiry increased from 75 years old to 85 years old
- Defined retirement age increased from 65 years old to 70 years old for employed applicants
Accord is also introducing a new income and tax-based Income Cover Ratio (ICR). Applicants who are basic rate or 0% tax payers and whose total income (including gross rental income) is less than £45,000 will qualify for a lower ICR of 125%. For those that meet these criteria, it will reduce the level of rent required by a landlord to meet the affordability requirements.
Chris Maggs (pictured), senior commercial manager at Accord Buy to Let, said: “The purchase market has slowed considerably over the last two years with over 75% of all lending being for remortgages. With all the changes in the buy-to-let market over the last few years, we wanted to provide some additional support for landlords and ensure that those who rely or are planning to rely on a buy-to-let income into retirement, can do so more easily.
“I’m really pleased we are now able to differentiate our affordability criteria based on the applicant’s tax banding and income. Offering an interest coverage ratio of 125% to landlords who meet the new criteria will really help from an affordability perspective. What’s more, this ICR is available for all loan to values up to 80% LTV.
“We know from broker feedback that these changes will increase the options available and ensure the best products can be sourced for their clients.”
This latest update from Accord buy-to-let also sees the launch of 28 new 80% products across two, three and five-year terms to offer an even wider choice, including a three year-fixed rate of 2.99% at 80% LTV with free valuation and a fee of £1,995, available for both house purchase and remortgage customers.