YBS Commercial Mortgages is delighted to be launching ICR Boost, designed to help professional portfolio landlords with good quality, low yielding properties access affordable finance. This new product is exclusively available to you as one of our top performing broker partners.
What is ICR Boost?
ICR Boost allows borrowers to use surplus income from their property portfolios to help them meet our affordability criteria. Traditionally, earned income is used to bridge any gap between rental income and mortgage payments, but this new approach will take into account income from the the whole of a landlord’s property portfolios, whether commercial or residential. To support this launch we’ve also introduced a new product available at 5.45% for up to 65% LTV and comes with a 3% fee.
This enhancement will enable us to lend more, helping landlords to expand their holdings despite the higher interest rate environment, and potentially offer them a more competitive product option too.
Below is a summary of key eligibility requirements you’ll need to consider before submitting a deal to us for ICR Boost.
ICR Boost – what you need to know
- The individual loan Income Coverage Ratio (ICR) from property or properties charged (min 110% at pay +0.3%)
- The portfolio ICR from the relevant linked entity’s properties (min 125% at 6%)
- A maximum LTV of 65% is required of the wider property portfolio
- £2m minimum loan size
- £20m minimum portfolio
- LTV requirements, maximum 65% against property applying for and wider portfolio being used to support the application
- ICR 110% instead of 125%
- Portfolio ICR is 125% after the additional or ‘top up / boost’ rent required is deducted
- Borrowers with high quality low yielding properties (below 5%) within a large portfolio
Contact our Business Development team or call or email me to find out more. Alternatively, if you’re interested in any of our other products you can now submit an enquiry online by clicking on the button below.