OneSavings Bank has simplified its buy-to-let interest coverage ratio requirements for its Kent Reliance and InterBay Commercial brands.
The changes increase the amount customers can borrow against their buy-to-let property.
Before, ICRs depended on various factors. These included whether the applicant was an individual or limited company and the number of other properties owned.
Now it just depends on applicant type and property type, OSB has lowered ICRs for portfolio landlords.
The ICR for personal applicants with specialist properties has also been cut, to 160 per cent (previously either 165 or 180 per cent).
The changes also include:
- 140 per cent ICR requirement for an individual with standard buy-to-let property
- 160 per cent ICR requirement for an individual with specialist buy-to-let property
- 125 per cent ICR requirement for a limited company with standard buy-to-let property
- 145 per cent ICR requirement for a limited company with specialist buy-to-let property
OSB sales director Adrian Moloney says: “Not only will these changes simplify the buy-to-let loan process and improve understanding amongst our brokers and their clients, but this simplification could also mean the opportunity for landlords to borrow more should they need to.”