"We think the change in the marketplace relating to ICRs could cause brokers a considerable amount of extra work as they may source a product only to find that a stricter ICR applies"
SAQS now includes a checkbox filter for selecting products that are suitable for either basic rate tax payers or higher/additional rate tax payers.
TBMC says it is aware that with the new tax regime and PRA regulations coming into effect, the buy-to-let mortgage market is now more complex than it has ever been and is keen to take action to help our broker clients navigate this new landscape.
Jane Simpson, managing director at TBMC, said: “Over the last month, we have seen most buy-to-let lenders adjust their interest coverage ratios in accordance with the PRA recommendations and some now have different ICR bandings for basic, higher and additional rate tax payers as well as for limited companies. This has created a more complicated range of schemes for brokers to source from.
“So far we have not seen the main sourcing systems adapt to this new scenario and it is not currently possible to filter products according to the tax rate status of the customer. We think the change in the marketplace relating to ICRs could cause brokers a considerable amount of extra work as they may source a product only to find that a stricter ICR applies to their client and the case no longer fits with the lender.
“TBMC’s enhanced buy-to-let sourcing system allows intermediaries to select the tax status of their client upfront and see an instant list of the lenders and products that are available. Our Sourcing and Quotation System is unique in the marketplace and has been designed specifically to help brokers source suitable buy-to-let products from their landlord clients.”
