The Nottingham lowers ICRs in buy-to-let criteria revamp

The building society has responded to broker feedback by making changes including lower Interest Cover Ratio (ICR) figures for buy-to-let and reduced calculation rates for standard and limited company applications, together with the removal of a required minimum income.

For limited company buy-to-let, the ICR five-year calculation rate has been lowered from 5.50% to 3.35%.

The standard buy-to-let ICR is down from 165% to 145% and the standard buy-to-let five-year calculation rate is now at 3.45%, down from 3.95%.

As part of the criteria changes, there is now no minimum income required (previously £25k p/a single applicant, £40k joint) and no requirement to see last month’s personal and business bank statements as standard.

The maximum LTV for lending on flats has also been raised to 75% from 65%.

In addition, the Society has now removed all of its Covid-related criteria.

The Nottingham’s head of mortgage product, Christie Cook, said: “We’re delighted to bring such positive criteria changes to life, and believe they will make placing buy-to-let and limited company buy-to-let cases with us more accessible and cohesive for brokers than ever before.

“In turn, it’s a major positive for their customers and is the latest step in us highlighting our ongoing commitment to providing competitive and fit-for-purpose products, services and processes in the buy-to-let space.”