Accord Mortgages has reduced the stress rates used for buy-to-let affordability assessments.

The lender says the change reflects stabilising interest rates and is designed to help more landlords access finance while still ensuring repayments are manageable if rates rise again.

For landlords remortgaging on a like-for-like basis, the interest coverage ratio rate (ICRR) for products with a term of five years or more will now be 4.75% or the product rate plus 35 basis points — whichever is higher — down from product rate plus 100 bps

For products with an initial term below five years, the ICRR will reduce to 4.75% from 5.5%, or product rate plus 70 bps — whichever is higher.

For landlords purchasing a property or remortgaging with capital raising, the ICRR for five-year or longer terms will be 4.75% or product rate plus 50 bps, down from product rate plus 100 bps.

For shorter-term products, the ICRR remains at 5.5% or product rate plus 200 bps, whichever is higher.

The lender’s interest coverage ratio (ICR) remains unchanged at 125% for basic-rate taxpayers and 145% for higher-rate taxpayers.

Accord Mortgages head of strategic partnerships and propositions Nicola Alvarez says: “We recognise the increasing pressures landlords are facing, and as a buy-to-let lender, we’re committed to adapting our approach to help them access the finance they need.

“Refining our affordability criteria allows us to support brokers in helping their landlord clients to navigate a challenging landscape, without compromising their long-term sustainability.

“The private rental sector is crucial to the functioning of a healthy housing market and economy, therefore it’s so important that we, as an industry, continue to look for opportunities to support them and help to maintain the availability of quality rental homes across the UK.”