"We are making the announcement today to give brokers as much notice as possible to submit applications before the deadline."
The reference rate for five-year fixed rates remains unchanged at 5.0% as does the ICR 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.”
Earlier this year, the Coventry increased its buy-to-let rental calculation from 125% to 140% of the monthly mortgage interest payment which is calculated using the reference rate or current product pay rate, whichever is higher.
It has also increased its maximum age at end of term from 75 to 85 for buy-to-let investors.
