Accord Mortgages has changed the tax thresholds used when applying the relevant interest coverage ratio (ICR) to buy-to-let (BTL) applications.

To date, the intermediary-only lender has used a threshold of £45,000 to determine whether an applicant is a higher or lower rate taxpayer, but will now align with HMRC’s UK tax bandings.

Accord said that simplifying its policy in line with recognised higher or lower tax bandings will make it easier for brokers to place business.

Nicola Alvarez, senior manager for new propositions at Accord Mortgages, said: “We’re always looking at ways we can improve our policies and processes, and we recognise that having different thresholds to determine taxpayer rates can add complexity.

“We’re pleased aligning our tax band thresholds to that of HMRC’s will improve broker experience and make us easier to do business with, and we know from broker feedback that this change will be welcome.”

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