Under the proposition, if each applicant’s total gross annual income is less than £40,000 and all applicants are non-taxpayers or basic rate taxpayers, the ICR is 125% - if any individual applicant’s total gross annual income is £40,000 or more, or if any applicant is a higher rate or additional rate tax payer, the ICR is 140%.
The lender is also removing its requirements for minimum income – previously £25,000 or £30,000 for joint applications – and minimum time in employment – previously 12 months.
Kevin Purvey, Director of Intermediaries, said:
“As the Buy to Let market becomes more complex, we’ve been looking for ways to keep our offering as simple and straightforward as possible. We’ve listened to and worked with intermediaries, and we think that a tiered ICR calculation – as part of our overall assessment – is the best way to adapt to the changing market. These clear and transparent changes will allow us to offer our Buy to Let products and award-winning service proposition to a wider group of landlords.”
