30/01/2018
Our ICR has changed

Our interest coverage ratio (ICR) is now 125% on our 2 & 3 year fixed rate deals for ‘straight switch’ remortgaging landlords

From Wednesday, 31 January we’re reducing our minimum rental cover requirements for ‘straight switch’ remortgaging landlords. This means we’ll be changing all product codes on our current range – everything else will stay the same. So, if you submit an application on or from Wednesday 31 January please ensure you use the new product code.

Remortgaging landlords looking to take a 2 or 3 year fixed rate and who don’t require any additional borrowing will benefit from an ICR of 125% at a stressed rate of 5.50%

For landlords who are capital raising the ICR will remain at 135% (freehold) and 145% (leasehold) with a stress rate of 5.50%

Our five-year fixed rates will continue to have an ICR of 135% with a stressed rate of 5% or the product rate, whichever is the higher, irrespective of  whether they have a remortgage or purchase mortgage.
 

 

Product  Term

Less than 5 years

5 years

Property Tenure

Mortgage Type

ICR

Stress Rate

ICR

Stress Rate

Freehold or Leasehold

Remortgage (no additional borrowing)

125%

5.50%

135%

5%

Freehold

Purchase

135%

Remortgage with capital raising

Leasehold

Purchase

145%

Remortgage with capital raising