The Mortgage Works (TMW) has improved its affordability criteria with changes to its interest cover ratios (ICR) and stress test rates, effective immediately.

The changes, aimed at making borrowing more sustainable for landlords, include a reduction in the ICR for higher rate taxpayers from 165% to 160%, and for limited company and lower rate taxpayers, from 130% to 125%.

In addition, the existing portfolio rental calculation stress rate has been lowered from 5% to 4.5%.