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Skipton BS tightens key portfolio lending criteria ahead of PRA deadline

  • 15/08/2017
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Skipton BS tightens key portfolio lending criteria ahead of PRA deadline
Skipton has revised its buy-to-let portfolio lending affordability requirements to 150% up from 145% at 5.5% and for five-year fixed rates at 5%, ahead of the incoming portfolio landlord regulation changes.

The new minimum income requirement for landlords will be at least £45,000, but that includes income from rental properties with supporting evidence. This was £20,000 previously, but excluded rental income.

Skipton said the majority of its existing criteria remained the same, including a cap on landlord portfolios of 10 properties in total with a limit of up to five mortgages with the lender.

The fourth largest mutual confirmed it will share full details of documentation changes and business plans next month, ahead of the deadline on 30 September.

The changes mean landlord with four mortgaged-properties or over will be assessed differently to landlords holding fewer properties.


Business as usual

Paul Darwin, Skipton’s director of intermediary lending, (pictured) said: “While being mindful of these new rules, this is very much business as usual for us.

“Skipton has been active in the buy-to-let market for many years and we recognise the amount of changes landlords have had to manage; from changes to income tax, stamp duty, affordability, underwriting, not to mention the new EPC changes for landlords from spring next year,” he added.

He added the lender wanted its broker partners and landlords to have all the support they can from the lender.


Lending growth

In half-year results, Skipton Building Society increased its gross mortgage balance by £0.7bn reaching £2.4bn gross mortgage lending in the six months to the end of June.

This is a 20.7% increase on the £1.9bn in the same period last year, despite the disposal of a £220m mortgage portfolio of non-performing loans, resulting in a £15m loss.

Last year, Council of Mortgage Lender figures confirmed Skipton as the 13th largest UK lender just behind Leeds on £4bn of full-year lending, but ahead of Co-op, Bank of Ireland and Metro Bank.

Skipton is the first and to date only, financial services provider to launch a Cash Lifetime ISA, helping 28,000 people from 6 June to the 18 July 2017 to save for their first home or longer term financial needs.

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