Coventry for intermediaries has introduced a transitional buy-to-let affordability policy for borrowers remortgaging, with a reference rate of 5% to be applied provided there is no additional borrowing.
If each applicant individually has a total gross annual income of less than £40,000, an income cover ratio (ICR) of 125% will be applied, while applicants with a total gross annual income of £40,000-plus, or who declares that they are a higher or additional rate tax payer, will have an ICR of 140%.
“We’re delighted to be making positive changes by introducing our transitional buy-to-let affordability policy,” said Kevin Purvey, Coventry’s director of intermediaries. “We believe that the changes will provide more choice for brokers and their clients.”
“And following on from our announcement that we’re committed to continuing to lend to portfolio landlords, we’ll be announcing the details of our approach to this soon,” he added.