View more on these topics

Accord announces portfolio landlord criteria ahead of PRA changes

Accord has become the latest lender to reveal details of its lending criteria for portfolio landlords ahead of the PRA underwriting standards changes.

The intermediary arm of Yorkshire Building Society will assess the financial strength and competency of a portfolio landlord by taking into consideration their experience in the buy-to-let market, their full property portfolio and any outstanding mortgages along with their assets and liabilities.

Existing rental calculations will apply for new borrowing. All background properties must collectively meet a minimum rental calculation of 135 per cent interest coverage ratio at a stressed rate of 5 per cent.

There will be no changes to loan to value limits, maximum loan size or minimum income criteria, while stress rates and the number of properties accepted will remain the same.

Accord Buy To Let’s commercial manager Chris Maggs says: “With so many changes happening to the buy-to-let market recently we believe it’s important to be transparent about our changes to criteria so brokers and landlords have time to prepare ahead of the new rules.

“We’ve tried to make our portfolio lending criteria as simple and straight forward as possible. In addition to our standard criteria, portfolio landlords will be required to supply details of any applications currently being processed with other lenders and complete an assets statement. We will also ask these landlords if they anticipate any financial changes or changes in circumstances which could impact the affordability of their portfolio.”

The new underwriting standards come into play from 30 September this year.

Recommended

Home-House-Monopoly-Money-Property-700x450.jpg

Aldermore reveals portfolio buy-to-let approach

Aldermore has revealed how it will approach lending to portfolio landlords when new Prudential Regulation Authority underwriting rules are rolled out in September. Aldermore will split portfolio landlords into two categories to determine what further information needs to be provided to underwrite the individual case. Standardised templates will be available for each of the information […]

Skipton confirms sale of £220m mortgage portfolio

Skipton Building Society has confirmed the sale of its Amber Homeloans Limited and North Yorkshire Limited mortgage portfolio. The building society held the mortgage loan books of its subsidiaries, which ceased trading in 2008, and has now sold the circa £220m portfolio to an affiliate of a fund managed by a global investment management firm. […]

Bank-of-England-BoE-Clock-700x450.jpg
2

Borrowers should weather base rate rises: UK Finance

Mortgage borrowers are well-placed to weather base rate rises over the next couple of years, according to the UK Finance mortgage board. The board, formerly the Council of Mortgage Lenders, says the UK could see a rate rise within 12 months. UK Finance says most borrowers are likely to “withstand rate increases higher than anything […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]

Newsletter

News and expert analysis straight to your inbox

Sign up