Accord Buy To Let has announced that it has reduced its minimum rental cover requirements for landlords looking to remortgage a buy-to-let property.
Remortgaging landlords who do not require any additional borrowing will now benefit from an interest coverage ratio (ICR) of 125% at a stressed rate of 5.50% if they opt for a two or three-year fixed rate mortgage with Accord. The ICR for these landlords was previously 135% at a stressed rate of 5.50%.
Landlords who are remortgaging, not taking further borrowing and taking out a five-year fixed rate will continue to have an interest coverage ratio (ICR) of 135% at a stressed rate of 5% or the product rate.
There is a calculator on Accord’s website which will clearly detail to brokers the maximum amount which can be borrowed based on their clients’ circumstances.
Chris Maggs, Commercial Manager at Accord Buy To Let said: “We already offer a competitive rental calculation. 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 cost 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.”