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Saturday, March 24, 2018

OneSavings Bank

OneSavings Bank refreshes ICR requirements

Tom Belger | 4:59 Wednesday 28th February 2018

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.”

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