OneSavings Bank announces portfolio landlord lending criteria

With lenders soon having to undertake specialist affordability testing on clients with four or more mortgaged buy to lets, OneSavings Bank has announced details of how it intends to meet the requirements.

The banking group, which includes specialist lenders Kent Reliance and InterBay Commercial, will now require additional information from clients that meet the PRA's definition of a portfolio landlord. This will include business plans, statements of assets and liabilities and cash flow statements. Borrowers will also need to provide details of their property portfolios, which will then be tested for affordability using an interest cover ratio (ICR) of 125% stressed against a 5% notional interest rate.

When submitting portfolio information, brokers will be able to make use of OSB's new Buy to Let Hub, announced at the end of July and developed in partnership with property risk software developer eTech. The platform, designed with input from Mortgages for Business, will allow brokers to upload portfolio details both directly and via Excel. Importantly, the software will be capable of updating a repeat borrower's portfolio record without the broker having to spend vast amounts of time re-keying information.

OneSavings Bank sales director Adrian Moloney said:
"OSB will keep things simple for brokers. We've always welcomed portfolio landlords and the changes here cement our position as the lender of choice for these borrowers. We've chosen to announce our criteria well ahead of the October deadline, to help brokers prepare for the changes in good time so they can feel confident when preparing clients to submit a portfolio application. Together with the new Buy to Let Hub, we're doing all we can to transition brokers and their clients into the new landscape with the minimum of fuss."

 

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