Accord Mortgages has reduced its ICR rates to help more landlords in the current higher interest rate environment.
For landlords that are remortgaging on a like-to-like basis, the ICR rate will drop to either 6% (previously 6.5%) or product rate + 1%, whichever is higher — this applies to products with an initial term of less than five years.
For products with a term of five years or more, the new ICR rate will be either 5.5%, or product rate + 1%, whichever is higher.
The specialist lender has also changed ICR rates for landlords purchasing a property or remortgaging with capital raising — the ICR rate will be the higher of either 6.5% (down from 7.5%) or product rate + 2% for mortgages with a term of less than five years.
For product terms of five years or more, the ICRR will reduce to either 5.5% (preciously 6.5%) or product rate + 1%, whichever is higher.
The lender’s ICR calculations will remain at 125% for all basic rate taxpayers and 145% for all higher rate taxpayers.
The changes apply to all new applications.
Nicola Alvarez, senior manager for new propositions at Accord Mortgages, said: “As a BTL lender, continually finding ways to help brokers and the landlords they serve is always at the forefront of our thinking.
“We understand the vital role landlords play in providing the kind of private rented housing which is in increasingly short supply, and are hoping these latest changes will provide much-needed support to them in the current challenging interest rate environment.”
