Accord to use collective ICR of 135% for portfolio buy-to-let

Ryan Bembridge

September 19, 2017

Accord Buy to Let will insist background properties collectively meet a 135% income coverage ratio against a rate of 5% from 29 September.

The change was made due to the new Prudential Regulation Authority underwriting standards, which affect applicants with four or more mortgaged buy-to-let properties.

Chris Maggs, Accord Buy To Let’s commercial Mmanager, said: “We’ve tried to ensure our portfolio lending criteria is as simple and straight forward as possible.

Homeownership isn’t the be-all and end-all

“Once an application has been submitted one of our underwriters will call the broker to discuss the case so any concerns can be addressed from the outset. The underwriter will take responsibility for that case through to the mortgage being offered.

“After a broker submits an application our decision in principal will guide them through a set of questions to determine if the case is deemed as a portfolio landlord according to our specifications. Our website will also have clear information and FAQs.

“We feel our portfolio landlord lending criteria is transparent and reflects the size of portfolios we accept, and will continue to provide a smooth application process for both brokers and their clients.”

There will be no changes to loan-to-value limits, maximum loan size or minimum income criteria, while stress rates and the number of properties accepted will remain the same.

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