For fixed rates above five years the Bank of Ireland will apply a 5% stress rate, in line with the PRA’s exemption from its minimum stress test of 5.5% for longer-term fixes.
The Bank of Ireland has followed other buy-to-let lenders by raising its income coverage ratio to 145% and applying a 5.5% stress rate to comply with Prudential Regulation Authority standards.
For fixed rates above five years the Bank of Ireland will apply a 5% stress rate, in line with the PRA’s exemption from its minimum stress test of 5.5% for longer-term fixes.
The PRA's tougher stress test rules came into force in the New Year.
Alison Pallett, director of sales, Bank of Ireland UK Mortgages, said: “These changes have been undertaken in order to comply with PRA regulation, which requires lenders to apply a minimum stress rate.
“This will further ensure any lending undertaken is done responsibly, and our new assessments will continue to form part of an ongoing robust underwriting practice.”
