This will apply to borrowers who do not require additional capital.
For landlords wanting to do a like-for-like remortgage, an ICR of 125 per cent will be stressed at 4.5 per cent for basic and zero rate taxpayers. This will apply to all products.
For those choosing terms shorter than five years, an ICR of 140 per cent will be stressed at 4.5 per cent for higher and additional rate taxpayers, a change from the previous ICR of 135 per cent which was stressed at 5.5 per cent.
For higher and additional rate taxpayers fixing for five years or longer, an ICR of 145 per cent will be stressed at four per cent. This is a change from the previous ICR of 145 per cent being stressed at 4.5 per cent.
Accord’s other ICR and ICRR rates remain unchanged.
Nicola Alvarez (pictured), senior manager for new propositions at Accord Mortgages, said: “We’re committed to evolving our buy-to-let offering to give brokers and their clients more choice. Reducing our ICR and ICRR for like-for-like remortgaging landlords to enhance affordability and potentially be able to lend more to, further demonstrates this.
“It’s the latest positive change we’ve made to our buy-to-let systems, processes and criteria that places us firmly as a buy-to-let lender, not just a lender that does buy to let.”
