Leeds Building Society announces preparation for buy to let lending criteria change
Leeds Building Society has announced more details of how it will be supporting brokers to comply with the new rules around portfolio landlords.
These include a dedicated team of underwriters to support portfolio buy to let lending and underwriting training for business development managers along with improved processes to make it simpler to submit buy to let applications, whether for a portfolio or a single property
The Society has created a dedicated webpage for intermediaries, ahead of the new Prudential Regulation Authority (PRA) rules on portfolio landlords, which come into effect at the end of this month and affect buy to let borrowers who have multiple mortgaged properties.
‘We want to reassure our broker partners that we remain committed to supporting landlords and the buy to let market and have been preparing for some months to be ready for these changes,’ said Jaedon Green, Leeds Building Society’s director of product and distribution.
‘Our aim is to make our buy to let proposition as straightforward as possible and ensure our service supports brokers and is user friendly. We’ve refined our criteria since the start of this year and strengthened both our underwriting and intermediary teams, with extra specialised training to cover these latest changes,’ he pointed out.
‘Now, by creating a dedicated portfolio buy to let page on our intermediary website, with a new declaration form and step by step guide for submitting portfolio business, we’re making the process as simple as we can,’ he added.
Leeds Building Society defines a portfolio landlord as a borrower who has four or more mortgaged rental properties. From 29 September, portfolio landlords will need to provide details of assets and liabilities, and declare future investment property intentions.
The Society has actively developed its processes to ensure underwriting remains proportionate. As a result, only a minority of cases will need to provide additional information such as cash flow.