This is the year you’ll see significant changes from us, all rooted in the feedback from our brokers. We’ll be investing in our teams, giving you even more dedicated, experienced support. You’ll see huge improvements to our processes, new products and much needed criteria changes, all designed to make us the lender you need us to be.
We’ve already reduced our rates, launched ICR Boost for eligible brokers and invested in our support for networks. This next change is designed to give your clients increased borrowing potential as we are lowering our debt servicing criteria.
What’s changing?
We’ve reduced our Interest Cover Ratio (ICR) stress rate on Limited Company BTL mortgages. For all 5 year fixed-rate products our stress rate is reducing from 125% @ Pay Rate plus 0.3% to 1.25 x @ Pay Rate, reducing the interest rate applied to the mortgage when calculating the interest cover against rent. This change will give greater borrowing power and lending options to your landlord clients with lower yielding properties, subject to remaining within our 75% LTV criteria which isn’t changing.
In addition, we’ve also reduced our stress rates on personal BTL mortgages, Holiday Lets and HMOs to increase the amounts that landlords can borrow.
For full details of all our products, click below to download our product pack, and you can now complete and submit an enquiry quickly using our new online form.