Coventry Intermediaries has announced that it is setting out additional lending criteria for portfolio landlords with four or more properties, to be introduced from 14 September.
The rules, which are being introduced ahead of the Prudential Regulation Authority’s deadline for tougher underwriting standards on 30 September, will see the lender’s existing buy-to-let criteria remain in place for the property being applied for, including minimum interest coverage ratio, maximum number of BTL properties per household and loan-to-value (LTV) limits.
Coventry will also consider all the properties in the applicant’s buy-to-let portfolio by means of a downloadable form that will capture information such as the value of each mortgage, monthly mortgage repayments, monthly rental amounts and estimated property values.
Up to 65% loan-to-value (LTV) will apply across the whole portfolio, alongside a minimum interest cover ratio (ICR), which will include properties mortgaged with other lenders at 125%, based on a reference rate of 5.5%.
Portfolio landlords must have bought their first buy-to-let property more than two years before the existing application, and no more than three properties prior to the current application should have been acquired within the last 12 months.
Kevin Purvey, director of intermediaries at Coventry, said: “While intermediaries are adjusting to our new approach to portfolio landlords, we will of course be here to help. Brokers can visit our website for full details of the changes to lending policy and the application process, or call the intermediary support team.”