Since confirmation of the PRA guidance on BTL Underwriting Standards, The Mortgage Works has been developing the capability to segment our minimum Interest Cover Ratio (ICR) requirements for higher and lower rate tax payers.
So, from Wednesday 17 May 2017, it is reducing the minimum ICR from 145% to 125%, for zero and basic rate tax payers.
To qualify for the lower 125% ICR, the maximum portfolio size upon completion of the new application is set at three properties. There is no change to policy for landlords who meet the higher 145% ICR.
For further information – click here