Coventry for Intermediaries has introduced its transitional buy-to-let affordability policy for remortgagors.

The lender will apply a reference rate of 5% provided there is no additional borrowing.

The new policy is based on the following:

•   Where each applicant individually has a total gross annual income below £40,000, an ICR of 125% will be applied with a reference rate of 5%.
•   Where any applicant has a total gross annual income of £40,000 or above, or declares they are a higher or additional rate tax payer, an ICR of 140% will be applied with a reference rate of 5%.

Kevin Purvey, director of intermediaries, said: “We’re delighted to be making positive changes by introducing our transitional buy-to-let affordability policy. We believe that the changes will provide more choice for brokers and their clients.

“And following on from our announcement that we’re committed to continuing to lend to portfolio landlords, we’ll be announcing the details of our approach to this soon.”