Announcing Our New Portfolio Lending Criteria.

Aug 17 2017

We are pleased to announce our new lending criteria for Portfolio Landlords in support of the PRA changes coming into effect on 1 October 2017.

We wanted to share the new criteria with you as soon as possible, so that both you and your clients are fully prepared for the forthcoming changes.

Our new criteria, accommodating the Portfolio Landlord changes, will commence from 1 October 2017. The criteria will apply when brokers are submitting cases for Portfolio Landlords, who can be identified as any borrower with four or more mortgaged properties. This includes those that are applying for a fourth mortgaged property, or those looking to re-mortgage one of their existing four properties.

In line with the new rules, we will require the following documents from Portfolio Landlords for all mortgage applications:

  • Business plan
  • Assets and liabilities statement
  • Cash flow statement

We will also require details of the borrower’s wider Buy to Let portfolio, which we will assess as part of the underwriting process.

It’s also important to know that any portfolio that is not currently with Interbay Commercial will be subject to an interest rate stress test of 5%, and will need to meet or exceed an ICR of 125%.

Submitting portfolio information

As you may know, brokers will be able to submit Portfolio Landlord information via our new submission platform, which is currently being developed with our partners at eTech. The platform has been designed to offer brokers one, straightforward online solution for providing important information relating to their clients’ cases, and will be available via our website.