It seeks to enhance affordability of its buy-to-let offering
Accord Mortgages has lowered the interest coverage ratio (ICR) and interest coverage reference rate (ICRR) for landlords remortgaging, where no additional capital is being raised.
As part of ongoing enhancements to its buy-to-let offering, the lender has introduced new ICR rates for brokers whose landlord clients wish to do a like-for-like remortgage.
The new rates are 125% at a stressed rate of 4.50% for basic and zero rate taxpayers, applicable to all products; 140% at a stressed rate of 4.50% for higher and additional rate taxpayers choosing less than a five-year product; and 145% at a stressed rate of 4.00% for higher and additional rate taxpayers choosing a five-year or longer product.
All the lender’s other ICR and ICRR rates remain unchanged.
Nicola Alvarez, senior manager for new propositions at Accord Mortgages, said the intermediary-only lender is committed to evolving its buy-to-let offering to give brokers and their clients more choice.
“Reducing our ICR/ICRR for like-for-like remortgaging landlords to enhance affordability and potentially be able to lend more to, further demonstrates this. It’s the latest positive change we’ve made to our buy-to-let systems, processes, and criteria that places us firmly as a buy-to-let lender, not just a lender that does buy-to-let,” Alvarez said.
Accord has invested heavily in strengthening its buy-to-let propositions over the last 12 months by introducing new technology to make it easier for brokers to get lending decisions, removing minimum incomes, adding top-slicing and new-build for landlords, and launching new, longer-term ERC-free products, among other improvements.
