Buy to let investors hoping to remortgage without the need for any extra funds can now take advantage of an interest cover ratio (ICR) of 125 per cent at a stressed rate of 5.5 per cent from Accord.
Specialist landlord finance lender Accord Buy to Let has announced that it will be issuing a reduction to its minimum rental cover requirements for landlords who are remortgaging a buy to let property. Landlords who choose a two or three year fixed rate mortgage will be able to access the new products.
The changes were put into place in order to support the many landlords who are looking to refinance their property portfolio, aiming to help them cover all costs associated with managing their properties.
The products previously had an interest cover ratio (ICR) of 135 per cent at a stressed rate of 5.5 per cent.
Landlords who are remortgaging and do not need extra funding are able to opt for a five-year fixed rate, where they will continue to have an ICR of 135 per cent at a stressed rate of 5 per cent or the product rate.
Commercial manager at Accord Buy to Let Chris Maggs, commented on the new products, saying: ‘We already offer a competitive rental calculation. We expect there will be a strong remortgage market during 2018, so we’ve made the decision to reduce our ICR to support landlords who are refinancing their portfolio, which will now be one of the most competitive in the market.’
Mr Maggs continued: ‘We’ve always taken a cautious approach to our rental calculations to ensure landlords are able to cover all costs associated with managing a rental property. This is the first of a series of changes to simplify our rental calculations to make things as easy as possible for brokers and landlords.’