Increase to our rental Income Cover Ratio

From 21 September 2016, we're making changes to the way we calculate our Income Cover Ratio (ICR) for Nationwide customers with a UK let property.

This means that if you're using income from a property your client lets out in the UK, this change could impact their affordability.

  • Currently any background let property with a mortgage is treated as self-funding where the ICR is at least 125%. This is being increased to 145%.
  • This means that where the rental income does not cover the 145%, any shortfall will be treated as an outgoing.
  • NFI Online and our affordability calculators will be updated from 21 September.

Pipeline cases

Our current policy will apply to all cases that receive a Decision in Principle (DIP) before 21 September, even if a reprocess takes place on or after this date.

The increased ICR will apply to all cases where a DIP is requested on or after 21 September.

How to reserve existing products

You can reserve products through NFI Online or NFI MTE until 5.00pm Tuesday 20 September 2016.

Paper applications must be faxed to 01604 852 879 before 5.00pm, or posted to the address below with a postmark no later than Tuesday 20 September 2016.

Northampton Service Centre (IPA)
Kings Park Road
Moulton Park