Accord Buy-To-Let has revealed its lending criteria for portfolio landlords which comes into effect on the 30 September.
Accord has defined its requirements for those landlords who own four or more mortgaged buy-to-let properties in line with stricter underwriting standards outlined by the PRA.
The lender’s existing rental calculations will apply for new borrowing and all background properties must collectively meet a minimum rental calculation of 135% interest coverage ratio (ICR) at a stressed rate of 5%.
Chris Maggs, commercial manager at Accord Buy-To-Let, said: “With so many changes happening to the buy-to-let market recently we believe it’s important to be transparent about our changes to criteria so brokers and landlords have time to prepare ahead of the new rules.”
Accord will assess the financial strength and competency of a portfolio landlord by taking into consideration their experience in the buy-to-let market, full property portfolio and any outstanding mortgages along with their assets and liabilities.
There will be no changes to LTV limits, maximum loan size or minimum income criteria, whilst stress rates and the number of properties accepted will remain the same.