Here’s a quick overview of the changes affecting landlords with 4 mortgaged rental properties or more. From 19 September 2017, Barclays will tweak its rules for lending to portfolio landlords.
Prudential Regulation Authority changes
- From 1 January 2017: Mandatory affordability testing – including an interest-rate stress test
- By 30 September 2017: Lenders need to apply a specialist underwriting approach to portfolio landlord applications, and landlords may need to provide more information.
Changes at Barclays
We already assess BTL affordability by undertaking a personal solvency review and detailed affordability assessment of the borrower.
From 19 September 2017, your clients will be allowed a maximum of 6 mortgaged BTL / permission-to-let (PTL) properties with us, and a maximum of 10 mortgaged BTL / PTL properties across all lenders (including us).
Our other BTL criteria remain the same:
- Term: 5-25 years
- Maximum LTV: 75% (60% for individual loans of more than £1m)
- Maximum individual loan: £2m
- Maximum aggregate borrowing with us: £3m (£4.5m across all lenders)
- Minimum personal income: £25,000 (£75,000 for individual loans of more than £1m)
Rate-switch-only applications aren’t affected by these changes.
Making an application with us
From 19 September 2017 onwards:
- We’ll apply a specialist underwriting approach for new BTL portfolio landlord applications (applications started before this date aren’t affected)
- All portfolio landlord clients will need to complete a property schedule
- We won’t need a separate property schedule if a client has fewer than 4 mortgaged rental properties (including the subject property) across all lenders
For more details about the information we’ll need, see our landlord guide, property schedule and ‘Criteria at a glance’.
