The Leeds to continue serving portfolio landlords

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The Leeds Building Society has outlined its approach to buy-to-let lending rule changes coming into force in September.

In line with new Prudential Regulation Authority (PRA) rules, the Leeds will define a portfolio landlord as a borrower who has four or more mortgaged rental properties.

“We’re committed to supporting landlords and the buy-to-let market so will continue to accept mortgage applications from portfolio landlords after 30 September,” said Jaedon Green, Leeds Building Society’s director of product and distribution.

“We’ve also increased the maximum number of holiday lets by 33%, which provides intermediaries with greater flexibility to mix and match, using the Leeds Building Society for up to four properties, whether buy-to-let, holiday let or a mixture.

“And by lifting the maximum portfolio size from eight to 10 mortgaged rental properties, we’re recognising the growth in portfolio buy-to-let as the market matures.

“There will be no changes to our existing loan to value (LTV) limits, maximum loan size, Interest Coverage Ratio (ICR) or stress rates.

“We’re working very hard to make our buy-to-let proposition simple and straightforward and ensure our service is as broker-friendly as possible.”

In addition to the property schedule already requested for buy-to-let applications, on or after 29 September, portfolio landlords will need to provide details of their assets and liabilities, and declare future investment property intentions.

Further information, such as cash flow, will be requested only in more complex cases, which the Society expects will account for a very small proportion of applications.

“The buy-to-let criteria changes we introduced at the start of this year, were well-received by the industry,” said Green.

“To further develop our proposition we’re preparing our underwriting and broker-facing colleagues to ensure that at launch we‘re able to fully support our intermediary partners.”

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