Precise mortgages are the latest lender to outline their proposition for buy to let portfolio lending.
The lender has put its proposition online in readyness for the changes being implemented by the Prudential Regulation Authority at the end of this month.
Precise Mortgages will require brokers to submit a business plan, an assets and liabilities statement, and details of their customer’s residential property portfolio. However, brokers will not need to key the additional information into the system.
Precise managing director, Alan Cleary, said: ‘We’re giving brokers a head start by making our forms accessible more than a week before the PRA’s new underwriting standards for portfolio landlords come into force.
‘It means brokers can start collecting their customer’s information in advance and be ready in plenty of time. Once the portfolio team has input the information into the system, it will remain valid for six months making future applications even more straightforward.’
Precise follows Metro Bank and Together Finance in committing to buy to let portfolio lending.
Together will apply an overall portfolio interest coverage ratio (ICR) for customers who have had arrears on any mortgage or secured loan in the last 12 months, and will require proof of income, although if there are no secured arrears then this will not be applied.
Richard Tugwell, intermediary relationship director at Together, said: ‘As the buy to let sector prepares for further changes, it’s likely that we’ll see a move towards specialist lenders like ourselves that can offer the flexibility and personal approach that will be needed in many portfolio landlord cases. At Together, we have updated our processes to help make it as easy as possible for brokers to adapt to the changes and applied our usual common sense approach.’
Metro Bank also announced this week that it will apply the revised underwriting standards to its portfolio buy to let business when the Prudential Regulation Authority underwriting standards come in on 30 September.
Charles Morley, Director of Mortgage Distribution at Metro Bank said: ‘We remain committed to the buy to let portfolio market and the small number of changes announced mean brokers and landlords can feel rest assured that the simple and straightforward application process that they’ve come to expect with Metro Bank, will continue.’