Coventry enhances residential and buy-to-let affordability

Coventry for intermediaries has updated its residential affordability calculator and reduced its buy-to-let reference rates, allowing people to borrow more.

Most residential applicants will be able to borrow more, subject to eligibility, with online affordability calculators able to give the exact amount.

The new buy-to-let reference rates are now as follows:

· 4.5% (previously 4.75%.) for five-year fixed rate purchase and remortgage applications, or product pay rate (whichever is higher).

· 4.5% (previously 5%) for two and three-year fixed and variable rate remortgages with no additional borrowing,  or product pay rate.

· 5.5% (previously 6.5%) for two and three-year fixed and variable rate purchases and remortgages with additional borrowing,  or product pay rate +2%.

Last month the lender also added new functionality to its online system, enabling brokers to submit more cases via the MSO platform. Cases submitted using this system typically go to offer one day quicker than non-MSO cases.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “These affordability changes will give many people a welcome boost to their borrowing. Our online calculators have now been updated, so brokers can just tap in a few numbers and easily find out how much their clients can borrow.

“We’ve also recently rolled out some great new features on our online system, making placing a case with us easier than ever. The significant investment in this technology and the enhancement to our affordability shows how we’re aiming to make business with us as simple as possible.”