BM Solutions (previously known as Birmingham Midshires) has set a deadline of September 9 for portfolio landlord applications to be submitted before they face tougher underwriting standards.
The Prudential Regulation Authority (PRA) has introduced new rules for professional landlords, and as a result, it will be more involved to secure a buy-to-let mortgage if you have four or more properties.
After September 9, landlords will not qualify for a mortgage with BM Solutions if they have more than 10 mortgaged buy-to-let properties with the lender. They will require a minimum income of £30,000, and the maximum aggregate portfolio loan-to-value will be capped at 75% loan-to-value.
There will also be a minimum aggregate 145% rental income cover stress test at 5.5%, and this is based on the entire portfolio and any unencumbered let properties.
Aaron Strutt, product director at Trinity Financial, says: “The mortgage market is about to get more complicated for professional buy-to-let landlords, although as each lender is interpreting the PRA’s rules in different ways, some lenders will be easier to deal with than others.”
Call Trinity Financial on 020 7016 0790 to secure a professional landlord mortgage