You are here: Home - News -

BM Solutions’ BTL portfolio underwriting system goes live

by:
  • 11/09/2017
  • 0
BM Solutions’ BTL portfolio underwriting system goes live
Lloyds Banking Group’s buy-to-let lender BM Solutions' website has set its portfolio underwriting system live this morning.

The changes comply with the Prudential Regulatory Authority’s rules which demand income and affordability checks be done on each landlord with four or more mortgaged properties from 30 September.

The lender began a series of 70 workshops two weeks ago to educate advisers on the upcoming changes and has already seen 1,000 brokers and hopes to see another 4,000 to 5,000 in the coming weeks.

 

Personal income priority

Phil Rickards, head of BM Solutions said brokers have never had to take the personal income element of any buy-to-let application very seriously but the tax changes have changed this now.

“BM Solutions is taking a tiered approach to the buy-to-let application, which is assessed accordingly, so this is a step change for the market and there will be a lot of different approaches from lenders market-wide.”

He added the focus of BM Solutions’ workshops was keying customer’s details correctly and the different documentary evidence brokers will need to provide, including the differences for self-employed and employed borrowers.

 

Market slowdown

Rickards said he expected the buy-to-let lending market to slow in the short-term as both lenders and brokers bed-in the changes.

“You’ll see a dip in the short-term but our business has held up year-on-year,” he added.

“My one frustration is that there is a lot of negativity about buy-to-let business, but it’s an opportunity to do some great quality business with remortgaging buoyant and product transfers representing another opportunity.”

In August, BM Solutions confirmed it will accept applications from landlords with a maximum of 10 mortgaged buy-to-let properties including any new application to the lender itself, with no more than three properties allowed to be with Lloyds Banking Group.

The lender now requires applicants to have a minimum aggregate portfolio Rental Cover Ratio (RCR) of 145%, stressed at 5.5%. A minimum of £30,000 earned taxable income per application is needed with a maximum aggregate portfolio loan-to-value (LTV) of 75%.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Family Building Society appoints BDM for Outer London

Family Building Society has recruited Roger Churaman (pictured) as business development manager.

Close