Paragon and Virgin Money enhance BTL criteria

Paragon has reduced its income coverage ratio (ICR) from 5.75 per cent to 5.50 per cent on selected buy-to-let mortgages.

The specialist lender has also launched a suite of five-year fixed rate buy-to-let mortgages available to both portfolio and non-portfolio landlords up to 75 per cent loan to value with rates starting from 5.40 per cent.

All deals include free mortgage valuations and are available on houses in multiple occupation, multi-unit blocks and single self-contained properties.

Virgin Money makes changes

Virgin Money has removed the minimum income requirement for buy-to-let applications that are assessed using an ICR calculation which the lender says will simplify its income requirements.

Brokers will still need to input all the customer’s income into the application. Where personal income is being used to support the affordability of the application, it remains set at £50,000.

The bank has also made changes to its portfolio lending criteria.

Landlords can now have up to five buy-to-let properties in the same post code, such as G1 2HL.

Previously, this was restricted to a postcode area, for example G1.

This restriction does not apply if the application being submitted is a remortgage with no additional borrowing.