Coventry to apply 5.5% buy-to-let stress test from 15 December
Coventry for intermediaries will introduce the Prudential Regulation Authority’s 5.5% buy-to-let stress rate from 15 December.
However unlike BM Solutions Coventry will apply the PRA’s exemption for fixed rates above five years which will continue to be stress tested at 5%.
Coventry has also kept its income coverage ratio at 140%.
Kevin Purvey, director of intermediaries, said: “In line with PRA guidance we have increased our reference rate to 5.5% on products with a benefit period of less than 5 years.
“We are making the announcement today to give brokers as much notice as possible to submit applications before the deadline.”
Mortgage applications submitted by 8pm on 14 December 2016 will not be affected by the changes.