Following the implementation of the new PRA Buy-to-Let underwriting standards, which are introduced at the end of September and will require portfolio landlords to provide additional documents to support their applications. Aldermore, the specialist bank, has made new documents available to brokers and landlords in advance, so that they have knowledge of what will be required, with the aim of making the process as smooth as possible.
The new PRA underwriting standards will mean more stringent affordability assessments across the market and lenders will need to apply a specialist underwriting approach, something Aldermore is already widely recognised as providing.
Documents required for portfolio Buy-to-Let applicants:
As these changes are implemented, Aldermore remains committed to providing the best possible support to brokers and their portfolio landlord clients, who under the new regulation will be defined as those who have four or more mortgaged Buy-to-Let properties.
Other checks will include portfolio affordability testing, rental income validation by postcode, and where personal income is used, assessment of living costs and essential expenditure.
Commenting on the impending changes, Charles McDowell, Commercial Director, Mortgages, at Aldermore, said: “We recognise there are big changes afoot and as a business we have focused our attention on ensuring our brokers are best placed to meet these required changes. We want to give them and their portfolio landlord clients as much time as possible to understand what is required in light of the new rules which is why we have published these new documents ahead of the deadline to give them this peace of mind.
“As an industry, we need to constantly work to reduce administrative burden, to ensure we are freeing up brokers to add value to their clients. Our templates are easy to use and should make it straight forward for brokers to submit the required information. That being said, we will not be requiring brokers to use our templates providing they are able to give us the information we need.
“We want to assure our broker partners that we remain committed to the buy-to-let market by doing everything we can to support portfolio landlords when the changes are implemented.“
For further information, journalists can contact:
Rachael Snelling, Aldermore
Phone: 0208 1853 102
Rozie Green, Lansons
Phone: 0207 566 9724
Notes to Editors:
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