Buy to let PRA deadline looming – Cambridge Mortgage Broker
August 21st, 2017
The changes to landlords and their ability to acquire mortgage is due to be fully implemented by 1st October 2017. Many lenders have already changed their lending criteria to reflect the PRA changes however others are set to fully implement changes.
Guidelines were issued last year by the Prudential Regulation Authority meaning that lenders must bespoke their underwriting standards for applicants who are portfolio landlords with 4 or more properties by 30th September 2017.
The new standards are designed to differentiate between simple and complex buy to let. Complex buy to let involves cash flows and costs from multiple tenancies. In addition lenders will wish to know more information about your property investment experience, the total amount of mortgage borrowing you have across your portfolio, your business plan, your assets and liabilities (including tax liabilities), your income from property and elsewhere. A property portfolio spreadsheet will need to be prepared and sent off to the lender to supplement any mortgage application. 3 months’ worth of bank statements, SA302s, submitted tax returns, tenancy agreements and cash flow forecasts will be used to support any mortgage application.
However what each lender will be request will depend on the lender and will be on case by case basis.
Please note that any cases submitted after this date will be subject to the PRA changes and it could be the case that the chosen lender has already implemented the changes and will request additional information from you prior to the deadline.
If are thinking about refinancing one or more of the properties in your portfolio of 4 or more properties or if you are planning to purchase another investment property to add to your existing portfolio, to avoid these PRA changes contact us at your earliest convenience to enable us to look into your application before the PRA changes are fully implemented on 1st October 2017.