Accord Buy to Let broadens landlord proposition

At application, the lender has reduced the minimum age and raised the maximum age.

Accord Buy to Let broadens landlord proposition

Accord Buy to Let has broadened its age range for landlords.

Accord has reduced the minimum age from 25 to 18 years old and increased the maximum age at application from 70 to 75 years old.

The lender has also raised the maximum age at term expiry from 75 to 85 years old and its defined retirement age has increased from 65 to 70 years old for employed applicants.

Chris Maggs, senior commercial manager at Accord Buy to Let, said: “The purchase market has slowed considerably over the last two years with over 75% of all lending being for remortgages.

“With all the changes in the buy-to-let market over the last few years, we wanted to provide some additional support for landlords and ensure that those who rely or are planning to rely on a buy to let income into retirement, can do so more easily.

“I’m really pleased we are now able to differentiate our affordability criteria based on the applicant’s tax banding and income.

“Offering an interest coverage ratio of 125% to landlords who meet the new criteria will really help from an affordability perspective. What’s more, this ICR is available for all loan to values up to 80% LTV.

“We know from broker feedback that these changes will increase the options available and ensure the best products can be sourced for their clients.”

Applicants who are basic rate or 0% taxpayers and whose total income, including gross rental income, is less than £45,000 will qualify for a lower ICR of 125%.

For those who meet these criterion, it will reduce the level of rent required by a landlord to meet the affordability requirements.