The Northview Group has announced changes to its portfolio buy-to-let lending criteria for both Kensington and New Street Mortgages.
The changes come before the PRA’s update to underwrite standards for portfolio landlords, which comes into effect from September 30. As the rules suggest, both lending brands will define a portfolio landlord as a borrower with four or more mortgaged properties.
Kensington will update its proposition from September 28, and will limit its own exposure to £2 million, but will not restrict the total number of properties held in a portfolio.
New Street, however, will launch its revised proposition on September 27 and will lend to landlords with a maximum of 10 properties overall, limiting its own exposure to £2 million.
“These latest changes from the PRA form part of a wider regulatory update to the buy-to-let market,” said Steve Griffiths, director of sales and distribution at The Northview Group. “Whilst the portfolio landlord sector is increasingly complex, there are many landlords out there that continue to require support from lenders for their buy-to-let plans.”
Both lending brands will provide a standard rental cover from 125% at 5.5% assessment rate, with lower assessment rates offered on its five-year fixed products, starting from 4.5%. The current criteria for landlords with three or fewer properties will remain unchanged.
Griffiths added that the Group’s brands are there to support professional landlords following the PRA’s changes. “This newly updated proposition reflects the commitment to both parts of this market, those with fewer properties and the experienced professional landlords that want to build on their existing portfolios,” he pledged.
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