As of the 30 September, the PRA definition of a ‘portfolio landlord’ as one who has four or more mortgaged buy-to-let properties is applicable, however lenders may have different interpretations of that definition.
Paradigm is providing a buy-to-let ‘Lender Criteria Matrix’ document, which gives information on each buy-to-let lender’s portfolio landlord underwriting policies, is fully up-to-date and lists all lender panel members.
To accompany this, Paradigm has also produced a rental calculation document which shows all those lenders on the Paradigm panel and their current rental calculations and interest coverage ratio (ICR) stress tests.
In addition, Paradigm has created an example of a portfolio landlord business plan that covers off the current, and future, investment strategy details and can be used to provide information on the landlords’ properties such as location, type, tenant profile, property management, supporting business infrastructure, rent to cost model, and details of any professional service providers.
Paradigm also has a Q&A factsheet with a number of lender panel member representatives, which provide details on how those lenders’ changes and how they will approach post-PRA portfolio landlord lending and underwriting. Finally, there are a number of specific buy-to-let guides for members including a ‘Top tips’ on helping alleviate the work with such cases, and access to a number of Government Guides for landlord clients.
The lender has promised that all information will be kept up to date on the Paradigm Mortgage Services’ website
Similarly, Legal and General Mortgage Club has updated its Buy to Let Matrix to include all lender criteria on buy to let portfolios.
Its Matrix now includes lenders that have most recently updated their details and will accept portfolio landlords and limited company buy to let. It has promised the Matrix will be continue to be updated if lenders announce any further changes to their criteria.
John Coffield, head of Paradigm Mortgage Services, said: “There have been a number of predictions about how these changes would affect the market and now we will truly find out. Let’s not forget that not all lenders are PRA-authorised and there should be limited changes from this group, plus we at Paradigm are willing and able to support members as they get to grips with – what could be – a tricky introduction period. If advisers are in any doubts, they should feel free to contact our Mortgage Helpdesk where we will be more than happy to help you.”