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The Coventry for intermediaries is making positive changes to their transitional BTL affordability policy

24 July 2017

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With immediate effect,  your BTL customers could remortgage to the Coventry for intermediaries with a reference rate of 5%, providing there’s no additional borrowing. 

It’s designed to give buy to let customers more choice and it’s 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%. 

*Gross annual income includes all income received, i.e. all gross rental income from existing properties and the new BTL property, plus any other earned or unearned gross income. 

The Coventry for intermediaries will soon be announcing their approach to BTL portfolio lending in response to the new underwriting guidelines – so there’s more to come.

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