Precise lowers assessment and stress rates to improve BTL affordability

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.”