Buy to Let

Leeds unveils streamlined portfolio landlord approach

Leeds Building Society has released the full details of how it will approach portfolio landlord buy-to-let from 30 September.

The lender says it has used the incoming PRA underwriting changes to overhaul its buy-to-let processes.

Leeds director of product and distribution Jaedon Green says brokers will find it quicker to submit a portfolio application than it is to put through a standard buy-to-let application now.

The lender says it will make a lending decision within 24 hours of getting a declaration form.

The firm has a dedicated portfolio underwriting team and given extra underwriting training to its business development managers.

It has also published a factsheet about portfolio landlords online for brokers.

Green says there is too much industry “doom mongering” about portfolio landlord lending after 30 September.

He says: “If we are not careful the industry will talk itself into its own Armageddon.”

Green adds that he hopes more lenders will publish their full approach to portfolio buy-to-let sooner rather than later.

Process

Brokers have to check Leeds’ criteria, then file for a decision in principle online.

Next the lender has created a short declaration form as a PDF that can be used by brokers putting through portfolio applications.

Brokers will have to give details of landlords’ assets and liabilities, as well as declare future investment property intentions. 

But further information, such as cash flow, will be requested only in more complex cases. 

In August Leeds said it would not change its existing LTV limits, maximum loan size, interest coverage ratio or stress rates for portfolio cases.

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