Rental Calculation
For products where the initial product term is less than 5 years, we will apply the higher of 5.50%; or the initial pay rate + 2.00%.
For products 5 year fixed or more, we will apply the initial pay rate.
For Lifetime Trackers we will apply the initial pay rate + 2.00% .
Related words: ICR, affordability, tax, interest, revert
For applications including a combination of Additional Rate/Higher Rate/Basic Rate borrowers, we can apply a Blended ICR to determine loan affordability based upon each borrower’s tax status and their individual share of ownership/rent. Please refer to the affordability calculator held on the Documents page of our website to calculate how much your clients can borrow.
Related words: Tax band, percentage, uneven, increase, maximise
Basic Rate 125%. Limited Companies / LLP 125% Higher Rate 140%.
See also Blended ICR
Related words: Company, Ltd Co, Limited Liability Partnership, affordability, tax, assessment