The Mortgage Works (TMW) has announced it will continue to lend to portfolio landlords following the introduction of stricter underwriting standards.
The move by Nationwide’s specialist buy-to-let arm is designed to help landlords to plan ahead before they are hit by tougher affordability checks due to come into effect by 30 September, the deadline set by the Prudential Regulation Authority (PRA).
The assessments will be required to take into account a borrower’s costs including tax liabilities, verified personal income (where used by the lender) and possible future interest rate increases.
Portfolio landlords are defined by the PRA as borrowers with four or more distinct mortgaged buy-to-let rental properties.
Paul Wootton, managing director of TMW, said: “Against a backdrop of unprecedented change affecting the buy-to-let sector, we believe it is important we state this intention early, to provide clarity and support landlords with their longer-term planning.
“With a proud history of serving experienced and professional landlords, we are well placed to support portfolio landlords and intermediary partners through the transition to the new regulations.
“There will be some changes to the way we assess portfolio landlord mortgage applications, and we plan to announce the finer details in due course and in advance of the PRA deadline.”
Tony Salentino, director at Southampton-based Complete Financial Services, said: “There is so much uncertainty that as brokers we are desperate for lenders to start showing their cards and get their message out about how to deal with the changes.
“The concern is that we are going into the middle of May and no-one knows what the process is going to look like. We desperately need lenders to not be shy about being the first to get out there and say what their criteria are going to be.”
simon.allin@ft.com
