Foundation doubles BTL portfolio limits

The specialist buy-to-let lender will now accept portfolios worth up to £2m for both purchase and remortgages.

FHL commercial director Simon Bayley said: “Having seen that our existing portfolio loans have performed so well, we are keen to develop our appetite in this area of the buy to let market.

“By doubling the size of portfolios we will accept, we are sending a clear message to advisers for their clients about our intentions in this important buy-to-let sector.”

The move follows changes to buy-to-let underwriting by the Prudential Regulation Authority (PRA), which will see a separate regime implemented for portfolio landlords – defined as those with four or more buy-to-let properties.

The PRA will also introduce stricter underwriting criteria for all landlords from next year, which some commentators will lead to more portfolio landlords entering the market as marginal players start to exit.

Foundation also made a series of changes to its criteria for proof of income. Whereas it previously required the last three months’ bank statements for income verification, it will now accept last month’s payslips alongside the latest P60, or last year’s accounts for self-employed applicants.

Evidence of pension income will now suffice for retired applicants.

Bailey said: “In order to make it easier to provide relevant evidence of income we have also expanded the choice of documentation required at the application stage. This is further evidence of our ongoing determination to improve and simplify our criteria to make it easier for introducers to do business with FHL.”