Accord Buy To Let has brought in a 145 per cent interest cover rate for leasehold house purchase and capital raising remortgages with terms lower than five years.
Previously all Accord’s buy-to-let borrowing had ICRs of 135 per cent and stress rates of 5.5 per cent for terms of less than five years and 5 per cent for five year products.
The lender says it is making the changes “to reflect differing levels of costs incurred by landlords in managing a buy-to-let property”.
Accord Buy To Let commercial manager Chris Maggs says: “The changes to stamp duty and taxation impacting landlords, along with additional lender requirements around affordability, make it a challenging time for landlords.
“Most lenders have made significant changes to their interest cover ratios and stress rates, and at Accord we have tried to create flexibility by introducing variable rental calculations to support landlords whilst trying to keep it relatively straightforward.
“We’ve reassessed our rental calculations to fairly reflect the level of costs incurred across the range of landlords’ properties, which also take into consideration the changes in the buy-to-let market.”