"Zephyr’s new ICRs help landlords and property investors to borrow more than they could do previously"
For HMOs, multi-unit freehold blocks and flats above commercial property, Zephyr has reduced its ICR from 155% down to 135% for limited companies and to 150% for individuals.
Zephyr has also reduced new-build ICRs to the same level as their non-new build equivalents.
As a result, the ICR for a new-build flat for limited company borrowers will reduce from 155% to 125%. For this kind of flat with a monthly rental value of £800, a borrower can now access up to 70% LTV using Zephyr’s five-year product at 3.91% and obtain a loan of £196,000, 24% more than previously.
Paul Fryers, managing director of Zephyr Homeloans, said: “Zephyr’s new ICRs help landlords and property investors to borrow more than they could do previously — and benefit our intermediary partners by simplifying our criteria.
“The change further cements our position as one of the more competitive lenders available to UK landlords and demonstrates our commitment to the buy-to-let market.”
