Family Building Society said it had lowered the minimum interest coverage ratio (ICR) for all limited company BTL applications to 125%.
The lender has also increased the maximum loan to value (LTV) for house in multiple occupation (HMO) and multi-unit freehold block (MUFB) applications.
HMO applications will also be accepted from individual and expat landlords.
On the owner-occupier side, stress test affordability changes, which come into effect from 31 July, will boost affordability for most applications between 9% and 13%.
All interest-only applications, which have no associated costs to the repayment strategy, will be assessed against the interest-only payment regardless of the mortgage term requested.
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Looking at mortgage rates, all two- and five-year fixed rates in its UK landlord range will fall by 0.05%, and it has added two- and five-year fixed rates for HMO properties.
All two- and five-year fixed rates in its limited company range will fall by 0.05% and a new five-year fixed rate in this range is available through brokers and packagers.
Within its expat BTL range, two-year fixed rates will decrease by 0.05% and five-year fixed HMO rates will be launched.
On the owner-occupier side, two-year fixed rates have fallen by 0.05%, along with all joint borrower sole proprietor (JBSP) two-year fixed rates.
All JBSP five-year fixed rates will decrease by 0.1% as well as its 95% LTV family mortgage deal.
Darren Deacon, head of intermediary sales at Family Building Society, said: “Improving affordability options for our BTL and owner-occupier products provides greater flexibility for borrowers looking to maximise their mortgage borrowing.
“The reduction of the ICR to 125% will be, I’m sure, particularly welcomed by limited company landlords. This change, alongside our philosophy of manual underwriting, flexible criteria and rate reductions, will provide a real boost to intermediaries looking to provide more lender choice to their borrowers.”
