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Accord reveals portfolio buy-to-let underwriting change

Accord Buy To Let is the latest lender to announce that it is amending details of its buy-to-let lending criteria for portfolio landlords, which come into effect on 30 September.

The announcement has been made ahead of the rollout of stricter underwriting standards for portfolio landlords - defined as those who own four or more properties – set out by the Prudential Regulation Authority (PRA).

The lender, which is part of Yorkshire Building Society, said it will assess the financial strength and competency of a portfolio landlord by taking into consideration their experience in the buy-to-let market, their full property portfolio and any outstanding mortgages along with their assets and liabilities.


Existing rental calculations will apply for new borrowing, meaning that all of the landlord’s existing buy-to-let properties must collectively meet a minimum rental calculation of 135% interest coverage ratio (ICR) at a stressed rate of 5%.

Loan-to-value (LTV) limits will remain the same, along with the maximum loan size or minimum income criteria, stress rates and the number of properties.

Several other lenders have already outlined their approach, with some now asking for additional supporting documents for those with 11 or more mortgaged buy-to-let properties.

But Assets insists that it has tried to make its portfolio lending criteria as simple and straightforward as possible.

Chris Maggs, Accord Buy To Let’s commercial manager, said: “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.

"If brokers need any further clarity they can contact our business development advice team on 0345 1200 866, or speak to their knowledgeable Accord BDM.”

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