United Trust Bank has announced an important product update. Click here for the latest Master Broker/Packager/Distributors product guides. Or here for the updated product guides for Direct/Networks/Club. If you have any new applications you wish to discuss, please Contact us for more information.
ANNOUNCEMENTS
BTL Update – ICR calculations restricting your customers’ borrowing? We may have the answer…
If you have tried to place a BTL case recently, you’ll know that higher mortgage costs have put pressure on Interest Cover Ratio (ICR) calculations, resulting in many mortgage lenders coming back with offers much lower than the mortgage amount required.
In response, UTB is now accepting passing rent figures declared by landlords to a maximum of 10% over the rent verified by a valuer. The enhanced criteria apply to all single dwelling types, HMOs and MUBs with immediate effect.
As lenders typically underwrite on the lower of the valuer’s rent assessment or the passing rent (and sometimes only on the valuer’s rent assessment) we believe this move will help you secure higher LTVs for your landlord customers.
The change does not affect underwriting for holiday lets and serviced accommodation as UTB already uses passing rents over the previous 12 months or verification by a holiday letting agency.