As you may know, from 30th September 2017 the PRA will define borrowers with 4 or more mortgaged buy to let (BTL) properties as portfolio landlords. Leeds Building Society are pleased to continue supporting these borrowers.
From 29th September, the Society will increase its maximum portfolio size to 10 mortgaged rental properties and increase the maximum number of Holiday Lets accepted. This will provide you with greater flexibility to mix and match, enabling you to use Leeds Building Society for up to four rental properties, whether Buy to Let, Holiday Let or a mixture of the two.
The Society’s underwriting processes will continue to be proportionate to case complexity. In addition to the property schedule already requested, portfolio landlords will need to detail their assets and liabilities as well as future portfolio intentions. Only in more complex cases will the Society request additional information such as cashflow.
There will be no changes to loan to value (LTV) limits, maximum loan size, interest coverage ratio (ICR) or stress rates.
Key BTL criteria includes:
- 140% ICR
- Up to 70% LTV
- No minimum income (subject to assessment and affordability)
- No maximum term for assured shorthold tenancy agreement
- Stress rate of 5% for pound-for-pound remortgages
- Stress rate of 5.5% for purchase and capital raising remortgages
- HMOs are permitted with up to 5 bedrooms, with up to 2 people per room
The Society continues to develop its BTL proposition to make it simple and straightforward for intermediaries. Underwriting and broker-facing colleagues are being prepared for the changes to continue supporting you.
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