Coventry reveals stricter portfolio buy-to-let criteria
Coventry Building Society is toughening up its portfolio buy-to-let criteria ahead of Prudential Regulation Authority rules coming into force on 30 September.
From 14 September Coventry applicants with four or more buy-to-let properties (or three with a fourth being purchased) will be permitted to have a maximum loan-to-value of 65% and a minimum income coverage ratio of 125% against a rate of 5.5% across their entire portfolio.
Kevin Purvey (pictured), director of intermediaries, said: “We want intermediaries to be fully prepared, so we’re announcing our approach to portfolio landlords well in advance.
“The good news is that all of our existing buy-to-let criteria will still apply to the property being applied for, such as minimum ICR, maximum number of BTL properties per household and LTV limits.
“However, there are some additional criteria that we’ll implement from 14 September 2017.”
No single property is permitted to fall below an income coverage ratio of 100%.
Portfolio landlords must have acquired their first buy-to-let property more than two years before the application, while no more than three properties are allowed to have been purchased in the past 12 months.
Purvey added: “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.”