The Leeds Building Society has stated that landlords who are basic rate taxpayers will benefit from its interest cover ratio (ICR) changes.
The mutual has reduced ICR from 145% to 125% on buy-to-let mortgages where the applicant is a basic rate taxpayer.
The ICR for higher rate taxpayers remains at 145%. For additional rate taxpayers, ICR is 150%, while the ICR for all holiday let applicants will remain at 145%.
Martese Carton, the Leeds Building Society’s head of intermediary distribution, said: “This change will benefit existing and potential buy-to-let landlords who don’t pay tax at a higher rate.
“It means our buy-to-let mortgages are now tailored to each customer’s tax situation, are more accessible to those who are basic rate taxpayers, and makes buy-to-let more affordable for these landlords buying, remortgaging or borrowing additional funds.
“We continue to take a flexible and common sense approach to our product offering, reaffirming our commitment to the Intermediary market.”
