Fleet Mortgages has released a statement confirming that it will not be making any criteria changes with the introduction of stricter guidelines from the Prudential Regulation Authority on lending to portfolio landlords.
The PRA defines a portfolio landlord as someone that holds at least four mortgages buy to let properties in aggregate, regardless of ownership structure. From 1st October, the PRA will require lenders to follow a specialist underwriting process for these borrowers.
However, Fleet, which is not regulated by the PRA, has promised to maintain its current affordability test, an income cover ratio of 125% stressed at 5%, and will likewise require no additional information from borrowers.
The lender has promised no additional work will be involved in making an application, and no delays for their clients from additional processing. The lender has also committed itself to a focus on faster processing times, seeking to provide a contrast with those lenders that have announced plans to collect full portfolio details from affected borrowers before making a decision.
Bob young, Fleet Mortgages Chief Executive Officer said:
"The PRA underwriting requirements will mean significant changes to many lenders' systems and process, and an increase in complexity and workload for advisers. Our aim however is make sure the opposite is true when it comes to dealing with Fleet Mortgages - we have outlined our key commitments which mean no extra work required or extra information requested. Advisers who have conducted portfolio landlord business with us will see that our proposition is all about simplicity, flexibility, confidence and consistency. We have therefore worked on our processes to deliver on this and advisers should notice the difference between our requirements and those of our peer group.
"The next few months will be a very interesting and somewhat challenging period for advisers and their portfolio landlords, but we can reassure them there will be no such problems in using Fleet Mortgages. Moving forward we have a significant amount of money to lend, highly competitive products and criteria including an ICR of 125% at 5%, and we have the know-how and appetite to deal with advisers' portfolio landlord clients. It truly is 'business as usual' but with an even greater focus on ensuring a smooth process for all concerned."
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