Whilst the portfolio landlord sector is increasingly complex, there are many landlords out there that continue to require support from lenders for their buy-to-let plans.
The Northview Group has today announced changes to its portfolio buy-to-let lending criteria for both Kensington and New Street Mortgages.
The changes come ahead of the PRA’s update to underwriting standards for portfolio landlords, which come into effect from 30th September. As directed by the new PRA rules, both lending brands will define a portfolio landlord as a borrower with four or more mortgaged properties.
Kensington will update its proposition from 28th September, and will not restrict the total number of properties held in a portfolio, but limit its own exposure to £2 million.
New Street will launch its revised proposition on 27th September and will lend to landlords with a maximum of 10 properties overall, but will limit its own exposure to £2 million.
Both lending brands will offer a standard rental cover from 125% at 5.5% assessment rate, with lower assessment rates offered on its five-year fixed products, starting from 4.5%. Current criteria for landlords with three or fewer properties will remain unchanged.
In line with the new regulations, both brands will require more information on the portfolio via the completion of a portfolio summary, outlining all portfolio properties and a business plan, which outlines the landlord’s plans for the portfolio.
Steve Griffiths, Director of Sales and Distribution, The Northview Group, said: “These latest changes from the PRA form part of a wider regulatory update to the buy-to-let market. Whilst the portfolio landlord sector is increasingly complex, there are many landlords out there that continue to require support from lenders for their buy-to-let plans.
“With over 15 years of experience in the buy-to-let sector, the Group’s brands are there to support professional landlords following the PRA’s changes. This newly updated proposition reflects that commitment to both parts of this market, those with fewer properties and the experienced professional landlords that want to build on their existing portfolios.”