Ahead of the PRA's new underwriting standards, which come into effect in September, Accord has announced the details of its new lending criteria for portfolio landlords, while Leeds cuts buy to let mortgage rates and Yorkshire introduces new residential mortgage deals.
When assessing the financial strength and experience of a portfolio landlord, Accord will now review the landlord’s full history in the buy to let market, along with their complete property portfolio and other assets, liabilities and outstanding mortgages.
New borrowing will be assessed using the lender’s existing rental calculations, and a minimum rental calculation of 135% interest coverage ratio at a stressed rate of 5% will apply to all background properties, on a collective basis.
Accord is not making any revisions to its LTV limits, maximum loan size or minimum income criteria and stress rates and the number of properties accepted will also stay the same.
Commenting on Accord’s new criteria, Chris Maggs, commercial manager of Accord Buy to Let, said: “With so many changes happening to the buy to let market recently we believe it’s important to be transparent about our changes to criteria so brokers and landlords have time to prepare ahead of the new rules.
“We’ve tried to make our portfolio lending criteria as simple and straight forward as possible. In addition to our standard criteria, portfolio landlords will be required to supply details of any applications currently being processed with other lenders and complete an assets statement. We will also ask these landlords if they anticipate any financial changes or changes in circumstances which could impact the affordability of their portfolio.”
Leeds Building Society has slashed the rates on its fixed-rate buy to let mortgages by up to 0.25%, and its landlord range now offers a rate of 2.09% for a 70% LTV two-year deal.
Leeds has also introduced a two-year fixed rate remortgage product at 1.59%, up to 60% LTV.
Both these deals carry completion fees of £999 and allow for capital repayments of up to 10% per year.
Jaedon Green, director of product and distribution for Leeds Building Society advised that the lender will also be offering different fee and incentive combinations across the range, including cashback.
Meanwhile, Yorkshire Building Society is targeting buyers with smaller deposits by cutting the rates on its 95% LTV two-year fixed rate mortgage to 3.15% and offering £250 cashback on completion.
The lender is also advertising a new 85% LTV two-year fixed product to buyers and remortgagors, at a rate of 1.32%. Both products carry a fee of £995.
Charles Mungroo, Yorkshire Building Society’s mortgage manager, said: “We hope our latest rate reductions will appeal to customers with smaller deposits and help first-time buyers get a foot on the property ladder.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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