New tiered approach to ICR for BTL and holiday let
- 125% for basic and nil-rate UK taxpayers
- 145% for higher-rate and additional-rate UK taxpayers
We’re bringing in a new 125% on the stress rate, for basic and nil-rate UK taxpayers. This is because the tax payable is significantly less than the liability payable for higher or additional-rate UK taxpayers.
The new lower ICR tier will effectively increase the amount that basic or nil-rate UK taxpayer landlords can borrow, subject to remaining within the Society’s 80% loan to value (LTV) criteria.
The current 145% ICR on the stress rate will remain in place for higher-rate or additional-rate UK taxpayers.
Changes with immediate effect.
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