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Co-op Bank pulls out of portfolio lending

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  • 01/09/2017
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Co-op Bank pulls out of portfolio lending
The Co-operative Bank has pulled out of portfolio buy-to-let lending.

The lender made the move this week in reaction to the incoming rules imposed by the Prudential Regulation Authority (PRA).

 

Three property limit

A statement from the bank said that from 28 August it would not lend to individuals who own or will own more than three BTL properties (mortgaged or not), including the application security.

“This decision follows the PRA supervisory statement SS13/16 in relation to underwriting standards for Portfolio Landlords,” it said.

“Pipeline cases will not be affected by the change and applications received by the 25 August will be honoured,” it added.

 

No criteria change

Product switches with no additional borrowing will not be impacted by this change.

The change will also apply to ports and transfer of equity with no extra borrowing, as well as further advances for existing customers who are portfolio landlords.

 

Rate cuts

Earlier this week Platform announced it would be cutting rates on two- and five-year fixed residential mortgages by up to 0.10 percentage points.

Rates have been cut across mortgages between 60% and 75% loan-to-value (LTV).

It also cut rates on its direct to customer offering at 90% loan-to-value by 0.25 percentage points.

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