Coventry for Intermediaries is increasing its buy-to-let reference rate to 5.5% on loans with benefit periods of less than five years.

This move is in line with the Prudential Regulation Authority’s buy-to-let underwriting standards. However, the reference rate for five-year fixed rates remains unchanged at 5.0% as does their ICR at 140%.

The change will take place on 15 December.

Kevin Purvey, director of intermediaries, said: “In line with PRA guidance we have increased our reference rate to 5.5% on products with a benefit period of less than five years.

“We are making the announcement to give brokers as much notice as possible to submit applications before the deadline.”