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Landbay eases portfolio stress tests

Specialist buy-to-let mortgage lender Landbay has announced that it is changing its underlying portfolio stress tests for portfolio landlords.

It will now require rents to cover 125% of the mortgage at an interest rate of 5%, instead of the standard 125% at 5.5%.

If an application fails the test, dependent on the case, Landbay may consider applications using up to 10% of the declared income, subject to a minimum personal income of £100,000.

Landbay, which last week extended its lending criteria to include first-time landlords who do not currently own a residential property, has made its latest amendment with a view to offering more brokers and borrowers access to its specialist mortgage products.

Paul Brett, managing director of Intermediaries at Landbay, commented: “The buy-to-let market is set to become more complex in 2018, and as landlords move to navigate the changing environment, so too must lenders ensure that their approach to lending is robust.

“This is why we have chosen to refine our underlying portfolio stress tests, demonstrating our ongoing commitment to portfolio landlords.”

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