Precise Mortgages has simplified the minimum ICR for personal ownership applications and improved how it assesses buy-to-let affordability on short-term fixed rates and variable rate trackers.
The changes are designed to provide more financing options for personal ownership and buy-to-let clients seeking larger loans and could be of particular interest for those who are higher rate and additional rate taxpayers.
The minimum ICR for higher rate and additional rate taxpayers will now be 140% where previously it was 145% for higher rate and 160% for additional rate.
Meanwhile, the stress rate for short-term fixed rates and variable rate trackers will now be assessed at pay rate plus 1.55% (minimum 5.50%).
These changes are applicable to single dwellings and HMOs for all purchase and remortgage applications.
Adrian Moloney (pictured), group intermediary director at OSB Group, said: “These changes offer brokers increased affordability options at a time when their clients may be struggling to find suitable financial solutions.
“The ICR simplification will allow higher and additional rate landlords to access loan amounts which may have been out of reach, whilst our improved assessment rates will benefit limited companies through boosted finance opportunities and a wider choice of product options, which could support portfolio growth.”
