Kensington and New Street announce portfolio BTL changes

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Kensington and New Street Mortgages have announced changes to their portfolio buy-to-let approach ahead of incoming PRA changes to underwriting the class.

Kensington will not restrict the total number of properties held in a portfolio, but limit its own exposure to £2m.

The lender will give a full update on 28 September.

New Street will launch its new proposition on 27 September.

New Street will lend to landlords with a maximum of 10 properties overall, but will also limit its own exposure to £2m.

Both brands will offer a standard rental cover from 125 per cent at 5.5 per cent assessment rate.

Both firms will have lower assessment rates on their five-year fixed products, starting from 4.5 per cent.

Current criteria for landlords with three or fewer properties will remain unchanged.

Both of Northview’s lending brands will define a portfolio landlord as someone with four or more mortgaged properties.

Both will also require brokers to complete a portfolio summary outlining all portfolio properties.

They will also need portfolio landlords’ business plans.

The Northview Group director of sales and distribution Steve Griffiths says: “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.”

The PRA changes come in on 30 September.

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