Furness to assess buy-to-let on overall affordability

Ryan Bembridge

March 23, 2017

Furness Building Society has pledged to assess buy-to-let cases on overall affordability, while its buy-to-let income coverage ratio expectations have been lowered to 125%.

Furness’ products include 2-year discounts at 1.80% to 60% loan-to-value and 1.99% to 75% LTV, both with a £1,495 fee, as well as 3-year fixes at 2.05% to 60% LTV and 2.85% to 75% LTV, both with a £2,145.

Barry Fitzsimmons, head of intermediary distribution, said: “To further support brokers we have updated our website with new criteria and brokers will be pleased that we will not be applying an interest coverage calculation when assessing a new buy-to-let case, although the gross anticipated rent should be at least 125% of the interest charges at the initial pay rate.

“The society will use overall affordability to assess each case and we firmly believe these changes, including the introduction of the calculator, show our commitment to lending in this segment of the market.”

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