The tax band and ICR levels are as follows:
Applicant type
| Single self-contained properties
| HMOs, multi-unit blocks and all other property types
|
Basic rate tax payers (20%) |
125% |
130% |
Limited company |
125% |
130% |
Higher rate tax payers (40%) |
140% |
145% |
Additional rate tax payers (45%) |
140% |
145% |
We must be satisfied that the applicant(s) are able to withstand increases in mortgage interest rates, cover rental voids and be able to afford the mortgage now and after any fixed/discounted period expires. We may request evidence of contingency funds which could be used to support increased mortgage payments. We may decline an application if we believe the applicant will not be able to meet mortgage payments should interest rates increase.