Platform adjusts interest cover ratio down to 128% for buy to let remortgage business. From Monday 30 October, Platform; the intermediary-led mortgage brand of The Co-operative Bank, will assess eligible buy to let remortgage applications, without additional borrowing, using a minimum of 128% rental cover at a notional interest rate of 5.50%.

This arrangement supports landlords who already had a mortgage before the new PRA affordability guidelines came into effect in January 2017, and who are looking for a pound for pound remortgage without any additional capital raising.

Buy to let (BTL) mortgage applications that do not meet these criteria will continue to be assessed using a minimum of 145% rental cover at a notional interest rate of 5.50%.

Paul Norcott, Head of Mortgages and Insurance at the Co-operative Bank and Platform, said;
“We have been closely following developments in the BTL market since the new PRA guidelines were published, and we know that BTL remortgaging has been more difficult for some landlords since the market adopted those guidelines. These changes to our BTL criteria demonstrate that, whilst we remain extremely committed to responsible lending, we also want to take a common sense approach that supports landlords looking for a straightforward like-for-like remortgage.”