Coventry for intermediaries is simplifying their portfolio landlord lending policy.
They have reduced the stress rate from 5.5% to 5% for all portfolio calculations, and have also increased the minimum portfolio landlord Interest Coverage Ratio (ICR) from 125% to 145% for Higher/Additional rate tax payers (anyone earning £49,000 or more in England and Wales or anyone earning £42,500 or more in Scotland).
These changes apply to how they assess the whole portfolio only and come into effect from 3rd December. Pipeline cases will be unaffected by the changes. Jonathan Stinton, Head of Intermediary Relationships explains “These changes are aimed at the client’s whole portfolio only and are designed to align our ICR calculations between basic rate and higher rate tax payers.”
Coventry for intermediaries is the go-to option for many brokers due to their simple policy and hassle-free approach to portfolio landlords. They don’t ask portfolio landlords for a business plan; instead, there’s just one portfolio document to complete which allows them to underwrite the case immediately.
For more about portfolio landlords, visit Coventryforintermediaries.co.uk