Both lending brands will define a portfolio landlord as a borrower with four or more mortgaged properties. The changes accompany the PRA’s update to underwriting standards for portfolio landlords and begin on 30 September.
“These latest changes from the PRA form part of a wider regulatory update to the buy-to-let market. Whilst the portfolio landlord sector is increasingly complex, there are many landlords out there that continue to require support from lenders for their buy-to-let plans,” said Steve Griffiths, director of sales and distribution, The Northview Group (pictured).
New Street will launch its revised proposition on 27 September and will lend to landlords with a maximum of 10 properties overall. Kensington will not restrict the total number of properties held in a portfolio, and will update its proposition from 28 September. Both brands will limit their own exposure to £2m.
The brands will offer a standard rental cover from 125% at 5.5% assessment rate, with lower assessment rates offered on its five-year fixed products, starting from 4.5%. Current criteria for landlords with three or fewer properties will remain unchanged, said Northview Group.
“With over 15 years of experience in the buy-to-let sector, the Group’s brands are there to support professional landlords following the PRA’s changes. This newly updated proposition reflects that commitment to both parts of this market, those with fewer properties and the experienced professional landlords that want to build on their existing portfolios,” said Griffiths.
In line with the new regulations, both brands will require more information on the portfolio via the completion of a portfolio summary, outlining all portfolio properties and a business plan, which outlines the landlord’s plans for the portfolio.