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Coventry BS commits to portfolio BTL but Leeds and Virgin undecided

by: Samantha Partington and Owain Thomas
  • 25/05/2017
  • 0
Coventry BS commits to portfolio BTL but Leeds and Virgin undecided
Coventry Building Society has confirmed it will continue to service portfolio buy-to-let (BTL) lending when the new Prudential Regulation Authority (PRA) rules come into force in the autumn.

However, other lenders are still undecided about their implementation of the incoming regulations.

The subject has proved a trying one for brokers who have called for lenders to publish their portfolio lending criteria by the summer, two months ahead of the 30 September deadline, to allow them to prepare clients.

Coventry BS told Mortgage Solutions: “Our current lending policy allows a maximum of three BTL mortgage properties, and a maximum of 10 BTL mortgage properties held in total.

“We have no plans to change this criteria and will be updating our policy and process for those applicants classified as a portfolio landlord under the PRA definition (four or more mortgaged BTL properties held) to ensure full compliance with PRA requirements by the regulatory deadline.

“We are aware that our Intermediary partners are keen to understand the full details as soon as possible. We plan to communicate as soon as all the details are finalised and well before the September deadline,” the lender added.

 

Under review

Meanwhile, both Leeds Building Society and Virgin Money admitted they had not yet decided their approach.

A spokeswoman for Leeds BS told Mortgage Solutions: “We’re currently reviewing our lending policy and criteria with regard to the forthcoming buy-to-let portfolio changes.

“When the previous PRA rule changes came into force in January we developed a robust buy-to-let proposition to ensure we supported this important segment of the market through a period of change.”

A Virgin Money spokesman added: “We continue to focus on retail customers rather than portfolio landlords. Our position in the portfolio market is under review and we’ll announce any changes accordingly.”

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