Precise Mortgages has simplified its minimum ICR for personal ownership applications and improved how it assesses BTL affordability on short-term fixed rates and variable rate trackers.
The changes offer more financing options for BTL clients seeking larger loans.
The enhanced products could also help those who are higher-rate and additional-rate taxpayers.
Precise Mortgage’s minimum ICR — for higher-rate and additional-rate taxpayers — now stands at 140%.
Previously, it was 145% for higher rate and 160% for additional rate.
The stress rate for short-term fixed rates and variable rate trackers will now be assessed at pay rate plus 1.55% (minimum 5.50%).
These changes are applicable to both single dwellings and HMOs for all purchase and remortgage applications.
Adrian Moloney, group intermediary director at OSB Group, said: “These changes offer brokers increased affordability options at a time when their clients may be struggling to find suitable financial solutions.
“The ICR simplification will allow higher- and additional-rate landlords to access loan amounts which may have been out of reach, while our improved assessment rates will benefit limited companies through boosted finance opportunities and a wider choice of product options, which could support portfolio growth.”
