BM Solutions has set out the details of how it will tackle portfolio buy-to-let underwriting when the Prudential Regulation Authority (PRA) introduces tougher underwriting standards next month.
From 30 September, the lender will accept a maximum of ten mortgaged buy-to-let properties, and up to three properties with Lloyds Banking Group.
Under the lender’s new requirements, portfolio landlords will now need a minimum income of at least £30,000 earned taxable income per portfolio application, while it will not underwrite portfolios with a maximum aggregate loan-to-value of more than 75%.
BM Solutions has announced that it has also tightened its minimum portfolio affordability requirement to 145% at 5%.
Applicants with at least four mortgaged buy-to-let properties will have to give more information when applying for a loan, including proof of income and supporting documents, but there will be no changes to the lender’s existing process for landlords with three or fewer mortgaged buy-to-let properties.
Phil Rickards, head of BM Solutions, commented: “From this week we are speaking to several thousand brokers up and down the country, covering the new criteria in detail and helping show how it will translate into real time for their businesses.
“There are still a few places remaining so those still looking to attend should contact their BDM as soon as possible.”