Leeds reduces interest cover ratio for BTL borrowers

Jake Carter

March 23, 2021

rental yields btl

Leeds Building Society has reduced its interest cover ratio for buy-to-let borrowers.

The society has reduced the ICR from 145% to 125% on buy-to-let mortgages where the applicant is a basic rate taxpayer.

The ICR for higher rate taxpayers remains at 145%.

For additional rate taxpayers, ICR is 150%, while the ICR for all holiday let applicants will remain at 145%.

Martese Carton, head of intermediary distribution, said: “This change will benefit existing and potential Buy to Let landlords who don’t pay tax at a higher rate.

“It means our buy-to-let mortgages are now tailored to each customer’s tax situation, are more accessible to those who are basic rate taxpayers, and makes BTL more affordable for these landlords buying, remortgaging or borrowing additional funds.

“We continue to take a flexible and common sense approach to our product offering, reaffirming our commitment to the Intermediary market.”

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