Accord Mortgages has amended the tax thresholds used when applying the relevant interest coverage ratio (ICR) to buy-to-let applications.
The lender previously used a threshold of £45,000 to work out if an applicant is a higher or lower rate taxpayer. From today, this will be changed to align with HMRC’s tax bandings.
Accord said simplifying its policy would make it easier for brokers to place business.
Nicola Alvarez (pictured), senior manager for new propositions at Accord Mortgages, said: “We’re always looking at ways we can improve our policies and processes, and we recognise that having different thresholds to determine taxpayer rates can add complexity.
“Aligning our tax band thresholds to HMRC’s will improve broker experience and make us easier to do business with. We know from broker feedback that this change will be welcome.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
