We’re making changes to our ICR & ICRR for background BTL properties
From Wednesday 30 September, we’re making changes to how we assess background Buy to Let (BTL) properties when determining whether they’re self-financing.
What’s changing?
For all Residential and Buy to Let applications:
- The Income Coverage Ratio Rate (ICRR) used to assess background BTL properties will increase from 5.0% to 5.25%, helping ensure our affordability approach continues to support responsible lending.
For Buy to Let applications only:
- Where we can verify that the applicant is a basic-rate taxpayer, background BTL properties will be assessed using a reduced Income Coverage Ratio (ICR) of 125%, down from 145%.
- Higher-rate taxpayers will continue to be assessed using a 145% ICR.
What isn’t changing?
For Residential applications and applications requiring top-slicing: background BTL properties will continue to be assessed using a 145% ICR, regardless of the applicant’s tax status.
Already got a case in progress?
- For applications submitted before 30 September, we’ll continue to assess background BTL properties using the current approach (145% ICR and 5.0% ICRR) unless the application expires or requires resubmission.
On Thursday 17 September, Accord are increasing rates across all Residential lending ranges and across the Buy to Let New Business range
On Thursday 17 September, Accord are increasing rates across all Residential lending ranges and across the Buy to Let New Business product range. The current ranges will be withdrawn at 10pm on Wednesday 16 September and the new ranges will be available at 8am on Thursday 17 September.
What’s changing?
Accord Residential New Business
2 years fixed repriced upwards up to 0.40%
3 & 5 years fixed repriced upwards by 0.40%
10 years fixed repriced upwards by 0.21%
2 years trackers up by 0.15%
One product withdrawn and not relaunched – 2 years 95% RM Cascade
Accord Residential Product Transfer & Additional Loans
2 years fixed repriced upwards by up to 0.38%
3 years fixed repriced upwards by 0.38%
5 years fixed repriced upwards by 0.30%
10 years fixed repriced upwards by 0.20%
No change to tracker rates
Accord BTL New Business
2 years fixed repriced upwards by 0.39%
3 years fixed repriced upwards by 0.37%
5 years fixed repriced upwards by 0.33%