The Mortgage Works (TMW) has announced its new approach to portfolio lending, in line with the latest underwriting standards that come into play from 30 September 2017, while Precise Mortgages launches a new nationwide specialist masterclass for brokers.
TMW is changing its definition of a portfolio landlord, to that of a borrower with four or more distinct mortgaged buy to let properties. It will also ask for a customer’s income on all cases at the decision in principle (DIP) stage and the interest cover ratio for portfolio cases is to be set at 145%.
In addition, TMW will ask that a property schedule is provided as part of all portfolio landlord applications and a series of questions will identify portfolio landlords at the DIP stage.
Where a customer is mortgaged on four or more properties, further enquiries may be made into the value, rental income and outstanding mortgage balances secured against the portfolio as a whole.
TMW’s new online system will enable brokers to fill in portfolio property details on mortgage applications. The details will then be validated automatically, and a specialist portfolio underwriting team will assess the results.
Interest cover ratios on Houses in Multiple Occupation (HMO) will remain unchanged at 170%, regardless of the landlord’s status.
Similarly, loan-to-value (LTV) limits, maximum loan size, minimum income criteria, stress rates and the number of properties accepted will remain unchanged and TMW will continue to accept portfolios of all sizes.
Paul Wootton, managing director of TMW, said:
“Following the confirmation of our commitment to supporting portfolio landlords and intermediary partners through the transition to the new PRA underwriting standard, we are now providing further detail on how we are going to address such cases.
“This is to give the clarity landlords and brokers need to help them with their planning at a time of ongoing change for the buy-to-let sector.”
Meanwhile, Precise Mortgages has announced that it will be running specialist lending masterclasses this summer for brokers who want to learn more about lending and new business opportunities.
The masterclasses will take place in July and will be led by Jamie Pritchard, head of sales and Precise Mortgages.
The masterclasses will take place at the following times and locations:
- Milton Keynes, 4th July
- Brentwood, 5th July
- Reading, 6th July
- Leicester, 11th July
- Norwich, 12th July
- Manchester, 18th July
- Barnsley, 19th July
- Newcastle, 20th July
The three-hour course will cover a variety of topics, including the pros and cons of a limited company structure for landlords, changes to buy to let underwriting standards and new tax rules.
Other discussions will focus on the options available to customers with adverse credit, as well as the different methods of finance available, such as bridging and second charge loans.
Jamie Pritchard, head of sales and Precise Mortgages, commented:
“Places are limited and the masterclasses are filling up quickly.”
“Anyone interested in learning more about specialist lending and how it can help add value to their business should book early to avoid missing out.”
Those executives completing the course will be given a certificate confirming three hours of continuing professional development.
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