Melton BS cuts ICR on new mortgage

Melton BS cuts ICR on new mortgage

Melton Building Society has launched a fixed rate buy-to-let (BTL) product with a lower interest coverage ratio (ICR) than it currently offers. 

The new product has a five-year fixed rate of 2.72 per cent for business BTL customers, with an ICR of 145 per cent of the mortgage payment. The ICR is calculated on an interest only basis at 4 per cent. 

In addition, the BTL mortgage has no application fee and a completion fee of £399. 

Dan Atikinson, head of sales and marketing at Melton, said: "Landlords are increasingly looking for longer term fixed rates since they have reached an all time low.

"The combination of a lower ICR calculation and fixed rate on this product makes buy to let from the Melton accessible to a wider range of landlords."

The Melton offers a range of specialist buy to let mortgage products, including holiday buy to let and family buy to let and the society accepts first time buyers, first time landlords and non-owner occupiers.

Daniel Bailey, principal at Middleton Finance, said: "The Melton have released a very competitive buy-to-let rate. More importantly to landlords is the lower interest coverage rate, which many are struggling with at the moment. 

"This change in criteria will help many landlords who are finding it difficult to finance buy to let properties."