Precise Mortgages has become the latest lender to reveal its approach to portfolio landlords, which it says will cause "minimum disruption" to the sector.
Ahead of the second round of Prudential Regulation Authority (PRA) changes, which come into effect on 30 September next month, the lender has announced much of its criteria remains unchanged – including its decision to impose no limit on the size of a landlord’s existing portfolio.
Borrowers will be allowed to have up to 20 buy-to-let mortgages with Precise, with a combined maximum value of £5m.
The lender will also create a Portfolio Team which it says will do “the heavy lifting for mortgage intermediaries” by inputting the additional information required into the lender’s systems, which includes a business plan, Assets and Liability Statement and details of the existing residential property portfolio.
Alan Cleary, managing director, said: “We thought long and hard about how we could minimise the disruption to the mortgage intermediary and to the landlord whilst meeting the new requirements and have invested a significant amount of money and resources to make sure that we take as much of the burden as possible.”
Ying Tan, managing director, Buy to Let Club praised the lender’s “light touch” approach.
He said: “Precise’s decision will be widely welcomed by landlords. The lender’s decision to continue to accept unlimited portfolio sizes and the creation of a portfolio team demonstrates its support for portfolio landlords at a crucial time for the market.
“Precise has been proactive in engaging with the broker community and this has ensured that they have delivered a solution that is reasonably light touch but within the PRA guidelines.”