Leeds ready for PRA portfolio buy-to-let changes

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Leeds Building Society says it is ready for new buy-to-let lending rules concerning portfolio landlords coming in next month. 

The lender is not ready to reveal the precise criteria it will use, but today confirms it will accept portfolio applications from 30 September. 

Leeds also says it will not change its existing LTV limits, maximum loan size, interest coverage ratio or stress rates. 

The building society will define a portfolio landlord as a borrower who has four or more mortgaged rental properties.  

A Leeds statement says the lender’s underwriting approach will depend on the complexity of each case. 

Portfolio landlords will also be expected to give details of their assets and liabilities, as well as declare future investment property intentions. 

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

Building Society director of product and distribution Jaedon Green says: “We’re committed to supporting landlords and the buy-to-let market so will continue to accept mortgage applications from portfolio landlords after 30 September.”  

Green adds that the lender recognises the growth opportunities in portfolio buy-to-let, which is why it recently lifted its maximum portfolio size from eight to 10 mortgaged rental properties.