Accord Mortgages interest coverage ratio (ICR) is now 125% on 2 & 3 year fixed rate deals for ‘straight switch’ remortgaging landlords.
On Wednesday, 31 January Accord are reducing their minimum rental cover requirements for ‘straight switch’ remortgaging landlords. This means there will be changes to all product codes on their current range – everything else will stay the same. So, if you submit an application on or from Wednesday 31 January please ensure you use the new product code.
Remortgaging landlords looking to take a 2 or 3 year fixed rate and who don’t require any additional borrowing will benefit from an ICR of 125% at a stressed rate of 5.50%
For landlords who are capital raising the ICR will remain at 135% (freehold) and 145% (leasehold) with a stress rate of 5.50%
Accord five-year fixed rates will continue to have an ICR of 135% with a stressed rate of 5% or the product rate, whichever is the higher, irrespective of whether they have a remortgage or purchase mortgage.
| Product Term | |||||
|---|---|---|---|---|---|
| Less than 5 years | 5 Years | ||||
| Property Tenure | Mortgage Type | ICR | Stress Rate | ICR | Stress Rate |
| Freehold or Leasehold | Remortgage (no additional borrowing) | 125% | 5.50% | 135% | 5% |
| Freehold | Purchase | 135% | |||
| Remortgage with capital raising | |||||
| Leasehold | Purchase | 145% | |||
| Remortage with capital raising | |||||
Accord BTL products are available for properties located in England and Wales only.
Click here to go to the Accord BTL rental calculator
