An increasingly complex market
Are You a Portfolio Landlord?
From the 30th September 2017, Lenders were required by the Prudential Regulation Authority to alter the way in which buy to let mortgage applications are underwritten for Portfolio Landlords.
The revised definition of a Portfolio Landlord, according to the PRA is a “Borrower with 4 or more distinct mortgaged buy-to-let properties, either together or separately, in aggregate.”
The Lenders then apply their own interpretation of this requirement, so underwriting criteria can sadly be a cumbersome process! For example, whilst portfolios must “pass a specialist affordability check”, but how Lenders apply this varies enormously, with some being more onerous than others.
Willowlace is here to help!
Other areas into which Lenders may investigate include :-
- • Your experience as a Landlord
- • The total mortgage commitment and the loan to value of your entire portfolio, and
- • How any new lending impacts on your existing portfolio
- • Some may require a business plan and a schedule of your Assets and Liabilities
- • Your income both from property and elsewhere
By understanding the variations of these interpretations, we at Willowlace can help our Portfolio Landlords through this maze to find relevant and suitable Lenders and products.