United Trust Bank (UTB) Mortgages for Intermediaries will now accept passing rent figures declared by landlords to a maximum of 10% over the rent verified by a valuer.
The move aims to assist landlords who are under strain to meet current ICR calculations.
Current rent levels coupled with higher mortgage costs has put pressure on lenders’ ICR calculations, resulting in mortgage applications restricted to LTVs much lower than the traditional 75%.
The bank will now allow passing rates in response to this issue, which will apply to all single dwelling types, HMOs and MUBs with immediate effect.
UTB believes this will help landlords secure mortgages and remortgages they may otherwise have struggled to.
The change does not affect underwriting for holiday lets and serviced accommodation, as the lender already uses passing rents over the previous 12 months or verification by a holiday letting agency.
Caroline Mirakian, sales and marketing director for mortgages at UTB (pictured above), commented: “We are always looking for ways to help brokers provide the funding their customers need.
“We believe this flexibility on passing rent will make a real difference to brokers struggling to place cases at the upper end LTVs.”
