Landlords looking to remortgage, but who do not need any additional funds, can now take advantage of an interest coverage ratio (ICR) of 125% at a stressed rate of 5.5%, if they choose a two- or three-year fixed rate mortgage.
These products previously had an ICR of 135% at a stressed rate of 5.5%.
Remortgaging landlords who do not need extra funding and opt for a five-year fixed rate, will continue to have an ICR of 135% at a stressed rate of 5% or the product rate.
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“We already offer a competitive rental calculation,” said Chris Maggs, commercial manager at Accord Buy to Let (pictured above).
“We expect there will be a strong remortgage market during 2018, so we’ve made the decision to reduce our ICR to support landlords who are refinancing their portfolio, which will now be one of the most competitive in the market.
“We’ve always taken a cautious approach to our rental calculations to ensure landlords are able to cover all costs associated with managing a rental property.
“This is the first of a series of changes to simplify our rental calculations to make things as easy as possible for brokers and landlords.”
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