Important information for Buy to Let Landlords

Under new proposed PRA (Prudential Regulation Authority) requirements being introduced to the Buy to Let mortgage market in October this year, there is going to be a new definition for Portfolio Landlords.

Lenders will be required to take into account the applicants full exposure, they will require amongst other things the following;

  • Applicants with four or more mortgaged properties is a portfolio landlord
  • Portfolio applicants will need to verify income in the form of accounts, tax returns, SA302,s or any combination of these
  • A detailed schedule of all BTL properties
  • A business plan
  • A cash flow forecast
  • Bank Statements

Lenders will be required to take into account affordability across the applicant’s whole BTL portfolio, whereas at the moment lenders only assess affordability concerning the current property being purchased or re-mortgaged.

We realise this is still 6 months away and these new requirements from the PRA may change and be interpreted slightly differently by lenders. The fact still remains that BTL mortgages will continue to be unregulated, if the industry does not conform to these guidelines, this may prove to be just be one step away from regulation.

So therefore the conclusion is that there are even more changes on the way for a lot of BTL landlords and forward realisation and planning may prove to be a large advantage.

At Westexe Mortgages, we are here to help in any way we can. If you wish to discuss any matter concerning mortgages, please do not hesitate to contact us on 01392 216 344.

Kind regards,

Peter Marriott

Director

Posted on April 4, 2017 by Peter Marriott, in: Staff posts

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