Specialist lender Vida has announced a series of sweeping changes across its buy-to-let and residential mortgage ranges.

These include rate reductions of up to 0.54% and criteria enhancements aimed at improving affordability and accessibility for landlords and homeowners alike.

The lender has made substantial rate cuts to its buy-to-let range, with reductions of up to 0.51% on new business products.

The minimum loan size for selected Limited Edition buy-to-let products has also been lowered from £200,000 to £150,000, enabling access for a wider range of clients.

ICR ASSESSMENTS

Alongside pricing changes, Vida has refined its approach to Interest Coverage Ratio (ICR) assessments. A new blended ICR of 135% has been introduced for cases involving both basic and higher rate taxpayers – a 5% drop from the lender’s previous methodology.

The ICR for higher rate taxpayers has increased from 140% to 145%, while the 125% requirement for basic rate taxpayers and Special Purpose Vehicles remains unchanged.

The lender has also introduced a summer special to its criteria for Houses in Multiple Occupation (HMOs) and Multi-Unit Blocks (MUBs), temporarily increasing the maximum allowable size from six to eight bedrooms or units respectively.

The changes apply to properties held on a single freehold title, with valuation thresholds unaffected.

In the residential space, Vida has cut rates by as much as 0.54% across its product range and made adjustments to its affordability calculator.

The lender has also applied a further reduction to its 2-year stress rate, a move expected to help more borrowers meet affordability requirements.

Ross Williams, head of product management at Vida, said: “These enhancements reflect our ongoing commitment to evolving with the market and supporting brokers with products that meet the real-world needs of their clients.

“Whether it’s sharper pricing, broader criteria, or improved affordability, we’re focused on helping intermediaries deliver better outcomes.”