OneSavings Bank PLC has announced changes to its interest coverage ratio (ICR) requirements for all buy-to-let loans through trading brands Kent Reliance and InterBay Commercial.
The specialist bank’s changes aim to substantially simplify ICR requirements, potentially allowing customers to increase the amount they can borrow against their BTL property.
The new approach includes:
- 140% ICR requirement for an individual with standard BTL property
- 160% ICR requirement for an individual with specialist BTL property
- 125% ICR requirement for a limited company with standard BTL property
- 145% ICR requirement for a limited company with specialist BTL property
The definitions of standard and specialist property will remain unchanged with standard BTL properties including single dwellings, HMO/student/multi-let properties that have five or fewer rooms, and freehold blocks with four or fewer residential units.
Specialist BTL properties include HMO/student/multi-let properties with six or more rooms, and freehold blocks with five or more residential units.
Adrian Moloney, sales director at OneSavings Bank (pictured above), said: “Not only will these changes simplify the buy-to-let loan process and improve understanding among our brokers and their clients, but this simplification could also mean the opportunity for landlords to borrow more should they need to.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
OakNorth posts £10.6m pre-tax profit
OakNorth has announced that it made a pre-tax profit of £10.6m last year.
Revolut launches disposable virtual cards
Mobile banking platform Revolut has announced the introduction of a disposable virtual card feature to its premium service.
Masthaven teams up with Intrinsic Financial Services
Masthaven has announced a new partnership with Intrinsic Financial Services as the bank looks to enable more brokers to access its range of residential mortgages.
Cambridge & Counties refinances Oxfordshire nursery
Cambridge & Counties has refinanced an Oxfordshire nursery, which is creating 50% more places for local children.
How important are brokers in the specialist banking market?
Brokers are an important channel for newly launched banks, a number of industry professionals have claimed.
BFC Bank enters UK market
BFC Bank has launched into the UK banking market offering financial services to UK SMEs.
Liam Fox launches GREAT Innovation in Action Awards
International trade secretary Liam Fox has launched the GREAT Innovation in Action Awards to find the best partnerships between UK and Asia-Pacific companies.
Teachers Building Society names new board of directors chair
Teachers Building Society has named Julie Nicholson as the new chair of its board of directors.
Church of England introduces contactless payments
The Church of England has introduced contactless, virtual terminal and SMS mobile payments to over 16,000 churches, cathedrals and religious sites across England.
FIBA workshops to feature live deal room
The Financial Intermediary & Broker Association (FIBA) has announced that its upcoming regional workshops will give brokers the chance to interact with partner lenders in a live deal room.