Aldermore has published standardised templates to help brokers comply with the new Prudential Regulation Authority (PRA) rules, which come in at the end of September.
The rules will require portfolio landlords to provide additional documents to support their applications. This is likely to mean more stringent affordability assessments across the market and lenders will need to apply a specialist underwriting approach.
Business plans required
Aldermore said portfolio buy-to-let applicants will be required to complete business plan and portfolio schedule documents. Those with 11 or more mortgaged properties with Aldermore at completion will also need to complete cashflow forecasts and statements of assets and liabilities.
Other checks will include portfolio affordability testing, rental income validation by postcode, and where personal income is used, assessment of living costs and essential expenditure.
Charles McDowell (pictured), commercial director for mortgages at Aldermore, said the lender wanted to demonstrate its commitment to the buy-to-let market.
“We recognise there are big changes afoot and as a business we have focused our attention on ensuring our brokers are best placed to meet these required changes.
“We want to give them and their portfolio landlord clients as much time as possible to understand what is required in light of the new rules which is why we have published these new documents ahead of the deadline to give them this peace of mind.”
McDowell said the templates are easy to use and should make it straightforward for brokers to submit the required information.
“That being said, we will not be requiring brokers to use our templates providing they are able to give us the information we need.”