The Mortgage Works (TMW) is introducing its requirements this weekend for portfolio lending in response to new mortgage underwriting standards.
For portfolio cases, which TMW defines as having four or more distinct mortgaged buy-to-let rental properties the ICR is 145% with HMOs remaining at 170% regardless of a landlord’s tax status.
For portfolios of ten properties or fewer the aggregate stress rate is 4.5%, while for 11 or more properties – where total borrowing exceeds £1m with the Nationwide Group -the stress rate is 5.50%.
Paul Wootton, managing director of TMW, said: “We have taken a pragmatic and considered approach to the introduction of the new PRA standards.
“We have invested in a new online system and a dedicated portfolio team to support the process, as well as offering clear and ongoing guidance to both landlords and brokers from an early stage to help them prepare for the new rules, amid a range of changes affecting the buy-to-let sector.
“The aim is that for many landlords and brokers it will be business as usual.”
There will be no changes to LTV limits, maximum loan size or minimum income criteria and TMW will accept portfolios of all sizes with no limit to the number of properties.