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The Mortgage Works is tomorrow (Tuesday 5 March) reducing its Interest cover ratios (ICR):

  • For higher rate taxpayers, the ICR reduces from 165% to 160%
  • For Limited Company and lower rate taxpayers, the ICR reduces from 130% to 125%

The Mortgage Works is also reducing its Existing Portfolio Rental Calculation stress rate from 5% to 4.5%.

The new affordability policy is as follows:

Interest Cover Ratios:

Interest Cover Ratios

Buy to Let and Let to Buy

HMO and Limited Company HMO

Limited Company Buy to Let

Lower rate tax

Higher rate tax

125% (Effective from 5 March)

160% (Effective from 5 March)


125% (Effective from 5 March)

Joe Avarne, Senior Manager, Buy-to-Let Mortgages at The Mortgage Works, said: “We regularly review our affordability policy to ensure borrowing is sustainable for our landlords. With these latest changes we’re pleased to be able to reduce our Interest Cover Ratios so that landlords can borrow more and achieve their buy to let aspirations.”

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