Bank of Ireland UK tweaks BTL stress rates


Bank of Ireland UK has today changed its buy-to-let stress rate to comply with Prudential Regulation Authority’s rules which came into effect on 1 January 2017.

Rental income must be at least 145 per cent of the monthly stressed interest rate, including any product fees added to the loan.

If the product is fixed for less than five years, or a variable rate, Bank of Ireland UK will apply a 5.5 per cent stress rate.

for products that are fixed for five or more years they will use a 5 per cent stress rate.

Bank of Ireland UK Mortgages director of sales Alison Pallett says: “These changes have been undertaken in order to comply with PRA regulation, which requires lenders to apply a minimum stress rate.

“This will further ensure any lending undertaken is done responsibly, and our new assessments will continue to form part of an ongoing robust underwriting practice.”