Accord improves stress test calculation for buy-to-let remortgages

by Aaron Strutt

Feb 07 2018

Accord Mortgages has improved the stress test calculation it uses for “straight switch” buy-to-let remortgages.

Landlords opting for two or three year fixed rate mortgages without additional borrowing can access its lowest stress test calculation of 125 at 5.5%. It is amended to 135 at 5% if you lock into a five-year fixed rate.

If a property generates £1,500 rental income each month, Accord will lend approximately £261,818 on its shorter-term fixes, rising to £266,666 on a five-year fix.

Aaron Strutt, product director at Trinity Financial, says: “The lenders are offering incredibly cheap buy-to-let remortgage rates but the rental calculations often make it hard to secure large enough mortgages.

“For buy-to-let clients looking to capital raise the stress test will remain at 135 for freehold properties and 145 and leasehold properties, both calculated with a stress rate of 5.5%.”

Accord is the broker-only lending arm of the Yorkshire Building Society and it is changing its criteria for landlords who want to remortgage without raising any more money.

Call Trinity Financial on 020 7016 0790 to secure a buy-to-let remortgage