For houses in multiple occupation, multi-unit freehold blocks and flats above commercial property, Zephyr has reduced its ICR from 155 per cent down to 135 per cent for limited companies and to 150 per cent for individuals.
Paul Fryers, (pictured) managing director at Zephyr Homeloans, said: “Zephyr’s new ICRs help landlords and property investors to borrow more than they could do previously — and benefit our intermediary partners by simplifying our criteria.
“The change further cements our position as one of the more competitive lenders available to UK landlords and demonstrates our commitment to the buy-to-let market.”
Zephyr has also reduced its ICRs for new-build properties to the same level as non-new build equivalents.
For example, the ICR for a new-build flat, not above commercial premises, for limited company borrowers has been cut from 155 per cent to 125 per cent.
Because of the changes, Zephyr said the landlord of this type of flat with a monthly rental value of £800, could now access up to 70 per cent maximum loan to value ratio on a 3.91 per cent five-year deal, securing a loan of £196,000. Using the old ICR they would only have been advanced £158,000.
Zephyr Homeloans is a trading name of Topaz Finance Limited which is part of the Computershare group.