More Banks Confirm Portfolio Buy to Let Lending

Two further banks have confirmed that they will continue portfolio buy to let lending after the Prudential Regulation Authority (PRA) brings in new underwriting requirements.

The PRA will be bringing in the new underwriting regulations for portfolio buy to let lending from 1st October to ensure affordability for portfolio landlords.

Hampshire Trust Bank has drawn up new documents for brokers, which will be issued later this week.

Brokers with portfolio landlord applications will need to give the lender a portfolio schedule, business plan, cash flow for the previous 12 months and a future cash flow forecast.

Mark Sismey-Durrant, Hampshire Trust Bank chief executive said: ‘The buy to let landscape has faced a period of unprecedented change, with a number of new regulations being implemented that have impacted the market. Our approach has largely anticipated these changes already.

‘We remain committed to the portfolio buy-to-let sector and in supporting our broker partners with their business. Our new documents are designed to make it a simple and straightforward process for brokers to provide us with the new information that will be required.’

Similarly, Barclays have also confirmed their commitment to portfolio buy to let lending.

Barclays’ director of mortgages, Craig Calder, said: ‘We already assess buy to let affordability by carrying out a complete affordability assessment. This means minimal change to our existing application process or criteria for landlord customers who have four mortgaged rental properties or more.

‘From Tuesday 19 September, we’ll ask for a property schedule to be completed, which contains the additional information our specialist underwriters need to assess such applications.

‘In what’s been an unprecedented period of change for the buy-to-let sector, we have worked hard to minimise disruption and maintain a market leading offering. We continue to remain committed to the sector, our landlord customers and to our intermediary partners.’

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