We recently emailed you about the changes we're making to our affordability calculation and maximum LTV.
As a reminder, in order to help landlords safeguard positive cash flow ahead of the tax relief changes being phased in from next year, we're making the following changes with effect from tomorrow, 11 May:
- Rental coverage requirement increased from 125% to 145%.
- Reduction of maximum LTV from 80% to 75%.
We're also extending our end dates to August across all New Business and Existing Customer product ranges. You can view our updated product guide here.
Our maximum loan will continue to be calculated using the higher of either the stress rate or product pay rate. Our current stress rates remain unchanged.
To assist you and your clients, we've included information about the changes to taxation on our intermediary and customer facing websites. The dedicated page includes worked examples for your reference, along with our new calculator to help landlords understand if their profitability will be impacted.
Help and Support
Securing current products and criteria
Where applicable, paper applications must be postmarked up to Tuesday 10 May 2016.