For landlords who are remortgaging, the ICRR has been lowered to 6.5 per cent or the product rate plus one per cent, whichever is higher.
For capital raising, the ICRR is 6.5 per cent for products with an initial term of five years or more or product rate plus one per cent, whichever is higher. This is 7.5 per cent for products less than five years, or the product rate plus two per cent.
The ICRR was previously eight per cent for products with initial terms of less than five years on a capital raise or straight switch, and seven per cent for products with an initial term of five years or more.
Accord Mortgages has also changed its interest coverage ratio (ICR) meaning the calculation will be 125 per cent for all basic rate taxpayers and 145 per cent for higher rate taxpayers. This previously varied between 125, 140 and 145 per cent depending on the borrower and mortgage.
The changes will apply to new applications.
Nicola Alvarez (pictured), senior manager for new propositions at Accord Mortgages, said: “As a buy-to-let lender, not just a lender that does buy-to-let, we’re constantly looking for ways to support brokers and their landlord clients.
“We hope these latest positive changes to our criteria will help more landlords to continue servicing the buy-to-let market, providing much sought-after private rented housing.”
Natwest reduces rates
Natwest has reduced rates on a series of mortgages by up to 0.44 per cent.
For new borrowers, its five-year fix at 60 per cent loan to value (LTV) has gone down by 0.44 per cent to 4.98 per cent. Its five-year fixed green remortgage has been cut by the same amount to 4.93 per cent. Both products have a £995 fee.
For existing borrowers, rate reductions have been made to products from 60 to 80 per cent LTV.
These include a fee-free two-year fixed switcher product at 60 per cent LTV which has been cut by 0.25 per cent to 5.74 per cent and the £995 fee-paying alternative which now has a rate of 5.45 per cent, down from 5.67 per cent.
Elsewhere, five-year fixes have seen rate cuts of up to 0.44 per cent.
Natwest has also added two-year trackers for new and existing borrowers. Purchase and remortgage options have rates ranging from 3.59 per cent for a 60 per cent LTV deal with a £995 to 4.39 per cent for a fee-free option at 90 per cent LTV.
