Portfolio Landlords: Are You Ready?

f you have 4 or more mortgaged Buy-to-Let properties you need to read this.

Have you heard about the new PRA regulations? Scared about what this may mean for you?

First, let’s look at what PRA is:  The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial at the level of the individual firm. In total the PRA regulates approximately 1,700 financial firms. https://www.iasplus.com/en-gb/resources/other-regulatory/pra

 With effect from 30th September, under new PRA regulations:

  • Landlords with 4 or more mortgaged Buy-to-Let properties will be now classed as, “Portfolio Landlords.

What does this mean for you?

  • Lenders decision criteria will be changed, potentially meaning tougher affordability requirements and a longer turn around decision period.
  • If you’re a Buy- to- Let Portfolio Landlord and know that you will need finance in the future, now is a good time to talk to us.

As a landlord, what extra information might you be required to provide:

  • Latest 2-3 years tax returns
  • Up to 6 months bank statements
  • Details of your entire property portfolio
  • Evidence of other income
  • Business plan
  • Cashflow forecasts

If you’re a landlord considering another Buy-to-let mortgage don’t let the new regulations put you off. We are more than happy to sit down with you and talk about how we can help. We have a range of funders all with money to lend. Call us today on 01274 965356.