Zephyr Homeloans lowers interest coverage ratios for buy-to-let mortgages

11 February 2020

Bristol, 11 February 2020 – Zephyr Homeloans, the specialist buy-to-let lender owned by Computershare, has significantly reduced a range of its interest coverage ratios (ICR).

For houses in multiple occupation (HMOs), multi-unit freehold blocks (MUFB) and flats above commercial property (FAC), Zephyr has reduced its ICR from 155% down to 135% for limited companies and to 150% for individuals.

Zephyr has also reduced its ICRs for new-build properties.

Borrower type		Standard property ICR	HMOs, MUFBs and FACs	New build ICRs
Limited companies		125%	135%	Reduced to the same level as their non-new build equivalents
Individuals	Lower-rate taxpayers/like-for-like remortgages		150%
	Higher-rate taxpayers	140%

Paul Fryers, Managing Director at Zephyr Homeloans, said: “Zephyr’s new ICRs help landlords and property investors to borrow more than they could do previously — and benefit our intermediary partners by simplifying our criteria.

“The change further cements our position as one of the more competitive lenders available to UK landlords and demonstrates our commitment to the buy-to-let market.”

As an example of the changes, Zephyr has reduced the ICR for a new-build flat (not FAC) for limited company borrowers from 155% to 125%.

As a result, for this kind of flat with a monthly rental value of £800, such a borrower can now access up to 70% maximum loan-to-value ratio using Zephyr’s 3.91%, five-year product and obtain a loan of £196k: 24% more than previously (£158k).

Zephyr Homeloans is a trading name of Topaz Finance Limited, a part of the Computershare Loan Services division of the Computershare group.

More details are available at www.zephyrhomeloans.co.uk.