accord mortgages

Accord lowers rental calculation for remortgaging landlords

Accord Mortgages has changed the ICR and interest coverage reference rate (ICRR) for landlords remortgaging where no additional capital is being raised.

This is part of ongoing enhancements to the lender’s BTL offering.

From today (27th April), Accord’s new ICR rates for landlord clients who wish to do a like-for-like remortgage are:

  • 125% at a stressed rate of 4.5% for basic and zero rate taxpayers, applicable to all products
  • 140% at a stressed rate of 4.5% for higher and additional rate taxpayers choosing less than five-year product
  • 145% at a stressed rate of 4% for higher and additional rate taxpayers choosing a five-year or longer product

All other ICR and ICRR rates will remain unchanged.

Nicola Alvarez, senior manager for new propositions at Accord Mortgages, said: “We’re committed to evolving our BTL offering to give brokers and their clients more choice. 

“Reducing our ICR/ICRR for like-for-like remortgaging landlords to enhance affordability and potentially be able to lend more to, further demonstrates this. 

“It’s the latest positive change we’ve made to our BTL systems, processes and criteria that places us firmly as a BTL lender, not just a lender that does BTL.”

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