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.”
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