Accord Mortgages has lowered the interest coverage ratio (ICR) and interest coverage reference rate (ICRR) for landlords remortgaging where no additional capital is being raised.

The new rates are as follows:

•           125% at a stressed rate of 4.50% for basic and zero rate taxpayers, applicable to all products (previously the rate stood at 5.50%);
•           140% at a stressed rate of 4.50% for higher and additional rate taxpayers choosing less than five-year product (previously these came to 135% and 5.50%, respectively); and
•           145% at a stressed rate of 4.00% for higher and additional rate taxpayers choosing a five-year or longer product (the rate previously stood at 4.50%)

The lender says its other ICR/ICRR rates remain unchanged.

Accord Mortgages senior manager for new propositions Nicola Alvarez says: “We’re committed to evolving our buy to let offering to give brokers and their clients more choice. Reducing our ICR/ICRR for like-for-like remortgaging landlords to enhance affordability and potentially be able to lend more to further demonstrates this.”