Coventry for intermediaries has introduced a tiered ICR proposition for buy-to-let landlords based on applicants’ gross annual income and tax status.
The lender is also removing its requirements for minimum income and minimum time in employment.
If each applicant’s total gross income is less than £40,000 and all applicants are non-taxpayers or basic rate taxpayers the ICR will be 125%.
If any individual applicant’s total gross annual income is £40,000 or more, or if any applicant is a higher rate or additional rate taxpayer, the ICR is 140%.
Kevin Purvey, director of intermediaries, said: “As the buy-to-let market becomes more complex, we’ve been looking for ways to keep our offering as simple and straightforward as possible.
“We’ve listened to and worked with intermediaries, and we think that a tiered ICR calculation – as part of our overall assessment – is the best way to adapt to the changing market.”