Precise Mortgages, the specialist lender has announced its approach to Portfolio Landlords ahead of the implementation of phase two of the PRA’s underwriting standards due on the 30th September.
Central to the lender’s proposition is the creation of a Portfolio Team whose role is to do the heavy lifting for mortgage intermediaries and to help with the additional information required by the new regulations. The additional information required will be a Business Plan, Assets and Liability Statement and details of the existing residential property portfolio.
Highlights of the proposition are:
- The are no changes to the DIP or application systems.
- There is no need for mortgage intermediaries to key the existing portfolio into the lender’s systems.
- Additional information can be supplied in any format including the lender’s own forms.
- The Portfolio Team will input the additional information into the lender’s systems.
- Once the Portfolio Team have input the existing portfolio it will remain valid for six months making future applications more straightforward.
- The lender has built an in-house portfolio platform that will help assess the existing portfolio and includes the use of AVMs to calculate LTVs and ICRs.
The lender’s criteria is largely unchanged with the exception that the existing residential portfolio may be subject to interest rate stressing depending on the assets and liabilities of the landlord. Typically the interest rate stress will reflect the new business market in terms of customer type and ICR calculations.
Criteria Highlights Unchanged:
- Up to 20 buy to let mortgages with the lender subject to a combined maximum of £5m.
- No limit on size of existing portfolio.
- Licensed and unlicensed HMOs accepted up to 8 bedrooms with separate ASTs.
- On Ltd Company applications no limit on the number of director dependant shareholders under the age of 25.
- Bespoke ICR calculations on new applications to reflect the landlord’s tax position.
The new forms referenced above will be available on the lender’s website week commencing 25th September.
Managing Director Alan Cleary said: “We thought long and hard about how we could minimise the disruption to the mortgage intermediary and to the landlord whilst meeting the new requirements and have invested a significant amount of money and resources to make sure that we take as much of the burden as possible.”