Foundation confirms portfolio landlord approach

  • 14/09/2017
  • 0
Foundation confirms portfolio landlord approach
Foundation Home Loans has become the latest lender to outline its approach to portfolio landlords ahead of the new Prudential Regulation Authority (PRA) standards coming into play and says it there will be 'very little change' for borrowers.

Background portfolios must have a maximum aggregate portfolio LTV of 75%; this is calculated across the whole portfolio including unencumbered properties and a minimum aggregate rental cover ratio will be 125%, stressed at 5.5%

Borrowers will continue to be allowed unlimited background portfolios and finance up to £2m with Foundation. 

Jeff Knight (pictured), director of marketing at Foundation Home Loans, said“Our research, undertaken amongst intermediaries and portfolio landlords, highlighted a need for a proposition that is simple and pragmatic – something that has always been at the heart of our approach. Therefore, we have not had to change much at all and will continue to provide a straightforward proposition to intermediaries.

“Indeed, portfolio landlords already represent around 50% of our business, so unlike other lenders, this is very much business as usual for us and our intermediary partners.”

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