The specialist lender says from 29 September, the loan-to-value (LTV) across a customer’s portfolio must not exceed 75%, including mortgage-free properties.
It will also 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.
There will also be two additional questions on Together’s broker portal to find out how many mortgaged buy-to-let properties the customer has and the length of time they have been a landlord.
Richard Tugwell (pictured), 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.
Earlier this month, specialist lender Together Financial Services reported strong results for the year ended 30 June 2017.
Underlying earnings before interest, tax, depreciation and amortization were up 21.4% to £193.4m, while underlying profit before tax increased by almost 30% to £117.1m. Together’s statutory profit before tax increased to £94.1m, up from £90.3m in 2016.