The specialist lender says it has simplified its minimum interest cover ratio rules for personal ownership applications, and improved how it assesses buy-to-let affordability on short-term fixed-rate and variable-rate trackers. 

It adds its changes will in “particular interest those who are higher rate and additional rate taxpayers”. 

Highlights of the firm’s changes, which is part of home loan firm OSB Group, include: 

• Minimum interest cover ratio for higher rate and additional rate taxpayers will now be 140%, where previously it was 145% for higher rate and 160% for additional rate 
• The stress rate for short-term fixed-rate and variable-rate trackers will now be assessed at pay rate plus 1.55% (minimum 5.50%) 
• These changes are applicable to single dwellings and houses in multiple occupation for all purchase and remortgage applications 

OSB group intermediary director Adrian Moloney says: “These changes offer brokers increased affordability options at a time when their clients may be struggling to find suitable financial solutions.  

“The interest cover ratio simplification will allow higher and additional rate landlords to access loan amounts which may have been out of reach, whilst our improved assessment rates will benefit limited companies through boosted finance opportunities and a wider choice of product options, which could support portfolio growth.”