Accord Buy To Let is the latest lender to change its lending criteria for portfolio landlords with four or more investment properties, in accordance with stricter underwriting standards being introduced in the autumn.
Accord will assess the financial strength and competency of a portfolio landlord by taking into consideration their experience in the buy to let market, their full property portfolio and any outstanding mortgages along with their assets and liabilities.
All background properties must collectively meet a minimum rental calculation of 135 per cent interest coverage ratio at a stressed rate of 5.0 per cent.
This brings it in line with Bank of England Prudential Regulation Authority requirements for more thorough underwriting standards for ‘portfolio landlords’ with four or more mortgaged properties. All buy to let lenders must implement the new standards by September 30.
There will be no changes to Accord’s loan to value limits, maximum loan size or minimum income criteria, while stress rates and the number of properties accepted will remain the same.
Last week we reported on similar changes introduced by Paragon Mortgages.