OneSavings Bank revamps ICR requirements
OneSavings Bank has changed its interest coverage ratio (ICR) requirements for buy-to-let loans through trading brands Kent Reliance and InterBay Commercial.
The simplified approach includes 140% ICR requirement for an individual with standard buy-to-let property and 160% ICR requirement for an individual with specialist buy-to-let property.
There is also a 125% ICR requirement for a limited company with standard buy-to-let property and 145% ICR requirement for a limited company with simplified buy-to-let property.
Adrian Moloney, sales director at OneSavings Bank, said “Not only will these changes simplify the buy to let loan process and improve understanding amongst our brokers and their clients, but this simplification could also mean the opportunity for landlords to borrow more should they need to.”