Melton Building Society has introduced a lower rate for basic rate taxpayers, and will introduce a tiered approach to their interest coverage ratio (ICR) calculation for buy-to-let (BTL) mortgage applicants.
The new tiers will apply across their range of BTL products and will be 125% for basic rate taxpayers and 145% for higher rate taxpayers.
The building society says the introduction of the lower band for basic or nil rate taxpayers will offer applicants more flexibility when it comes to affordability.
Melton Building Society head of intermediaries Dan Atkinson says: “As a mutual building society established nearly 150 years ago it is within our foundations to seek ways to support good quality homes for our communities.”
“With these changes we hope to offer landlords, particularly those in lower tax brackets, the flexibility to borrow the money needed to continue to invest in quality properties that offer tenants safe and secure homes for many years to come.”
