BM Solutions 

BM Solutions launches portfolio buy-to-let calculator

BM Solutions launches portfolio buy-to-let calculator

A new tool has launched seeking to help brokers calculate loan-to-values (LTV) and rental cover ratios for buy-to-let portfolio lending.

BM Solutions introduced the online calculator to help brokers check clients' eligibility and criteria before submitting a case.

The Lloyds Banking group affiliate said new buy-to-let solutions spurred by the Prudential Regulation Authority's (PRA) changes to underwriting requirements could lead to confusion among brokers who were baffled by the greater level of choice.

Phil Rickards, head of BM Solutions, said: "The PRA underwriting requirements for portfolio landlords have resulted in a variety of lenders developing solutions.

"This greater level of choice is good news for brokers but can also lead to some confusion.

"After an early review, we have simplified our portfolio process with the introduction of a new online portfolio calculator to help brokers to calculate LTV and rental cover ratios for portfolio lending."

The PRA introduced more stringent underwriting requirements on 1 January 2017, followed by stricter underwriting guidelines for portfolio landlords brought in by the end of September.

This had followed a 3 per cent stamp duty surcharge on additional buy-to-let properties and cuts to landlord tax relief.

Since the changes were introduced, it has been reported that one in five landlords were considering selling their properties.

Mr Rickards said BM Solutions had responded to the changes by making it easier to complete customer profile forms, and enabling brokers to check elements of portfolio criteria prior to submitting the case.

The lender's criteria for portfolio landlords - those with four or more properties - include a minimum earned income of £30,000 per application; maximum aggregate portfolio of 75 per cent LTV; and a minimum aggregate portfolio rental cover ratio of 145 per cent stressed at 5.5 per cent.

The lender accepts no more than 10 buy-to-let mortgaged properties per application.