United Trust Bank (UTB) is to start accepting passing rent figures declared by landlords to a maximum of 10% over the rent verified by a valuer.

The bank describes it as a ‘lifeline’ for landlords and buy-to-let (BTL) mortgage brokers under pressure to meet current interest cover ratio (ICR) calculations.

UTB says current rent levels coupled with higher mortgage costs has put pressure on lenders’ ICR calculations.

This has, it says, resulted in mortgage applications restricted to LTVs much lower than the traditional 75% LTV.

It has accepted passing rent figures in response to this issue.

The enhanced criteria apply to all single dwelling types, houses in HMOs and MUBs with immediate effect.

UTB believes this move will help landlords to secure mortgages and remortgages they may otherwise have struggled to obtain due to the ICR calculation being restricted to lower figures.

The change does not affect underwriting for holiday lets and serviced accommodation as UTB already uses passing rents over the previous 12 months.

UTB sales and marketing director – Mortgages, Caroline Mirakian says: “We are always looking for ways to help brokers provide the funding their customers need.

“At present, pressures on ICRs are making it difficult for landlords to obtain the BTL mortgages they need to buy and refinance, and we believe this flexibility on passing rent will make a real difference to brokers struggling to place cases at the upper end LTVs.”