Our residential affordability calculation for background BTL portfolios is changing
From tomorrow we’re changing the Interest Coverage Ratio (ICR) and an ICRR (Interest Coverage Ratio Rate) we use to assess the affordability of background buy-to-let (BTL) portfolios when applying for a residential mortgage.
From tomorrow an applicant’s BTL portfolio can be classed as self-financing (and excluded from the affordability assessment) where rental income is 145% or more of the BTL mortgage payment based on an interest-only rate of 4.5%
Should the BTL mortgage not be self-financing the shortfall will be used in the affordability calculation for the client’s residential mortgage.
This change will also apply to existing customers with background BTLs who apply for additional borrowing or an account amendment, such as a Transfer of Equity.
What about applications already submitted?
All pipeline cases will continue to use the original ICR & ICRR calculation which they were assessed under.
Introducing our 2 new 85% LTV deals
We’ve good news for residential clients with a smaller deposit; today we’ve launched 2 new fixed rate products at 85% LTV.
Both fixed rate deals are available to purchase and remortgage clients and both come with a £995 product fee, £300 cashback and free valuation.
Clients can choose either a 2.53% deal for 2-years (product code 53281) or for those looking for longer security can select a 5-year deal at 2.80% (product code 53282).
These products will be available for a limited time only.
Accord BTL are making changes to their product range including new products and rate reductions
Applies to: Accord BTL only
Accord are making the following changes to their Buy to Let product range at 6pm Friday 12th March. Changes include a new range of 65% LTV HP & RM products, new 75% LTV 3 year product and cashback options being added to all remortgage products.
New BTL products
- New 65% LTV 2 & 5 year fixed rates for both HP and RM
- New 75% LTV 3 year fixed rates for both HP and RM.
BTL rates going down
- 2 Year 75% LTV HP product with £995 fee reduced by 0.06% and cashback increased to £500
- 2 year 75% LTV RM product with £1995 fee and Remortgage Legal Service reduced by 0.04%
- 5 year 75% LTV RM products with £1995/£995 fees and Remortgage Legal Service reduced by 0.02%.
BTL incentives changing
- All remortgage products now available with £250 cashback or free Remortgage Legal Service
- All HP products now come with £500 Cashback.
All Accords BTL remortgage and house purchase products come with free standard valuation.
BTL rates going up
- 2 Year 75% LTV HP product with £1995 fee, rate increased by 0.05%
- 2 Year 75% LTV RM product with £1995 fee, rate increased by 0.02%
- 5 Year 75% LTV HP product with £995 fee, rate increased by 0.02%
- 5 Year 75% LTV RM product with £995 fee (without legal incentive) increased by 0.02%
BTL deals not changing
All other products in the Accord BTL range remain unchanged.
The current product range will be withdrawn at 6pm Friday 2th March and the new range will be launched one hour later at 7pm Friday 12th March.