"Coupled with a notional rate of 5% on pound-for-pound remortgages, you can see how we are using ICRs which are tailored to the individual client’s financial status."
Vida Homeloans’ rental cover is now 125% for basic rate UK tax payers and limited companies (top up using surplus income from 115%) and 140% for higher rate UK tax payers (top up using surplus income from 120%).
A notional rate of 5% will also apply to pound-for-pound remortgages and rental calculation is based on the higher of product rate or 5.5% notional rate.
Vida says that it welcomes the government’s proposal to ensure availability of three year-tenancies for renters as it already offers 36-month tenancy product to landlords.
Louisa Sedgwick, Director of Sales – Mortgages at Vida Homeloans, commented: “Vida Homeloans prides itself on being a modern mortgage lender – committed to helping borrowers from a range of backgrounds with their specialist needs. Our buy-to-let proposition is designed to give flexibility to landlords and demonstrates our appetite to advance mortgages to landlords who want to offer longer tenancies.
“We have had great feedback from intermediaries and distribution partners about our willingness to consider 20% top ups from surplus income, which could mean that a higher rate taxpayer can obtain a buy to let mortgage based on 120% of rental income. Coupled with a notional rate of 5% on pound-for-pound remortgages, you can see how we are using ICRs which are tailored to the individual client’s financial status.”
