Minimum ICR across the whole portfolio

Our standard acceptability

5.9% stressed at 145%

Criteria definition:

This relates to if we specify a minimum income coverage ratio (ICR) that cannot be exceeded across the customers entire portfolio including both properties mortgaged to us and to other lenders.

Policy Notes:

The Society reduces the stressed rate to 130% for loans up to 65% or 135% for loans up to 70% for £ for £ remortgages. The Society's ICR rate is calculated as follows:

• The society’s expectation of likely future interest rates ( the society’s stressed rate) or
• The origination rate plus 2% or
• Guidance from the PRA or
• The society’s monthly BTL SVR whichever is higher.

Criteria categories:

• affordability
• Policy

Last updated:

21 August 2018