The Mortgage Works is introducing new requirements for portfolio landlords this weekend.
As the PRA changes come into effect, Nationwide’s buy-to-let arm is introducing new requirements for portfolio lending.
The interest cover ratio for landlords with four or more mortgaged buy-to-let properties is 145 per cent. HMOs will remain at 170 per cent.
For those with ten properties or fewer, the aggregate stress rate for all properties is 4.5 per cent. For those with 11 or more properties or more than £1m of borrowing from Nationwide, the rate rises to 5.5 per cent.
The implementation of new underwriting standards will see a new team brought in. Brokers will be able to access a new online system in which to input portfolio property details on mortgage applications.
TMW says it is trying to keep changes as simple and straightforward as possible. Like-for-like remortgage applications will be excluded from portfolios of fewer than seven properties. They will not be subject to the new criteria.
The lender is making no changes to its LTV limits, maximum loan size or minimum income criteria. The provider says it will continue to accept portfolio of all sizes, with no limit to the number of properties.
TMW managing director Paul Wootton says: “We have taken a pragmatic and considered approach to the new PRA standards. We are offering clear and ongoing guidance to landlords and brokers with the aim that it will be business as usual for them.”