You are here: Home - News -

Bank of Ireland UK amends stress rate for buy-to-let mortgages

  • 03/01/2017
  • 0
Bank of Ireland UK amends stress rate for buy-to-let mortgages
Bank of Ireland's UK mortgage arm has changed its stress rate to comply with underwriting rules implemented by the Prudential Regulation Authority on 1 January.

For mortgage deals fixed for less than five years or on a variable rate, Bank of Ireland will assume a stress rate of 5.5%, while for products that are fixed for five or more years it will apply a 5% rate.

Rental income for buy-to-let mortgages is required to be at least 145% of the monthly stressed interest rate, including any product fees added to the loan.

Alison Pallett, director of sales, Bank of Ireland UK Mortgages, said: “These changes have been undertaken in order to comply with PRA regulation, which requires lenders to apply a minimum stress rate. This will further ensure any lending undertaken is done responsibly, and our new assessments will continue to form part of an ongoing robust underwriting practice.”

Many lenders changed their affordability assessments toward the end of 2016, ahead of the PRA’s 1 January 2017 deadline. Changes to how portfolio landlords are assessed will be introduced from 30 September.

There are 0 Comment(s)

Comments are closed.

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
two people shaking hands
Regentsmead hires BDM as market competition ramps up

Regentsmead has expanded its sales team with the addition of a business development manager as competition hots up in the...