Paradigm publishes portfolio landlord factsheet
Paradigm Mortgage Services has released a factsheet detailing the portfolio landlord policies of lenders on its panel.
The factsheet covers a range of criteria and will be updated weekly as more lenders go public on their policies before the Prudential Regulation Authority deadline on 30 September.
John Coffield, head of Paradigm Mortgage Services, said: “At the time of writing we have just a handful of lenders who have come forward but we anticipate more will follow in the coming weeks.
“There’s no doubting that some of the announcements and detail already provided are quite confusing, particularly when a lender states that they will accept applications from portfolio landlords but when reading the details it’s obvious they have no intention in playing in the complex market of portfolios and limited company transactions.
“This adds a level of complexity to an already difficult marketplace to advise in, and Paradigm wants to provide advisers with easily-comparable data in this area. This is why we have produced our matrix factsheet which includes details on each of our lending partners’ intentions and how they intend to underwrite a portfolio landlord case.”
The factsheet covers: How the lender defines a portfolio landlord, whether the lender allows portfolio landlord applicants and whether it has a specific scheme for them, the number of allowable buy-to-let properties with the lender and elsewhere, document requirements and the range of additional underwriting that will be carried out.
It also includes lenders’ rental assessment calculation, what additional rental checks there are and whether lenders will ‘top-slice’ income and appropriate dates for the introduction of portfolio landlord criteria as well as any further dates.
To accompany this, Paradigm has produced a rental calculation document showing all those lenders on the Paradigm panel and their current rental calculations and ICR stress tests.
Under PRA underwriting changes which affect landlords with four or more mortgaged properties, lenders must scrutinise the borrower’s full portfolio of properties and outstanding mortgages in addition to the standard assessment.