Coventry for Intermediaries has announced a significant reduction in its buy-to-let stress rate, offering benefits for those looking to purchase, remortgage, and port their existing buy-to-let mortgage.
Under the new stress rate criteria, all customer types will benefit from a stress rate of 5.5% or the product rate, whichever is higher, for a 5+ year fixed rate.
For pound-for-pound remortgages on 2 and 3-year rates, the stress rate will be 5.5% or the product rate +1.0%, whichever is higher.
Finally, for purchases on 2 and 3-year rates, the stress rate will be 7.0% or the product rate +2.0%, whichever is higher.
Unlike before, customers will not have to undergo a stress test for like-for-like product transfers. The change has been welcomed by customers looking for a better deal, and also by intermediaries looking to find solutions for their clients.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “We’ve recalibrated our buy-to-let stress rate to reflect current market conditions, which may be of particular help to those looking for a pound for pound remortgage.
“We’re committed to helping our intermediary partners look after their clients, and equally want to support the private rental sector to help provide homes for those choosing to rent.”
The new changes come into effect immediately.
