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Leeds Building Society Reveals its Buy-to-Let Portfolio Plans
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Leeds Building Society is the latest lender to reveal its buy-to-let portfolio plans ahead of next month’s lending rule changes.
From 30th September 2017, the building society will expect landlords with four or more buy-to-let properties (portfolio landlords) to provide details of assets and liabilities, and declare future investment property intentions.
Leeds Building Society Reveals its Buy-to-Let Portfolio Plans
Additional information, such as cashflow, will only be required in more complex cases.
Leeds will also increase its maximum portfolio size from eight to ten, as well as raise the maximum number of holiday lets permitted to a third (33%).
However, the building society will not alter its core criteria of loan-to-value (LTV), maximum loan size, interest coverage ratio or stress tests.
The Director of Product and Distribution at Leeds Building Society, Jaedon Green, says: “We’re committed to supporting landlords and the buy-to-let market, so will continue to accept mortgage applications from portfolio landlords after 30th September.
“We’ve also increased the maximum number of holiday lets by 33%, which provides intermediaries with greater flexibility to mix and match, using the Leeds Building Society for up to four properties, whether buy-to-let, holiday let or a mixture.”
Under the Prudential Regulation Authority’s (PRA) buy-to-let portfolio plans, lenders will be required to conduct more in-depth portfolio and affordability assessments on investors.
Both Paragon and Aldermore have already revealed their stance on the buy-to-let portfolio plans.
Last week, Leeds Building Society reduced rates on its fixed rate buy-to-let deals by up to 0.25%.
New products include a 2.09% two-year fixed rate deal for purchase only, at up to 70% LTV, and a two-year fix for remortgage only, available at up to 60% LTV.
The products come with a 1% discount for three years following the end of their terms and a £999 completion fee.
Remortgage customers have the option of fees-assisted legal services or £250 cashback.
Green comments: “We’ve made reductions across our range of two and five-year fixed rate deals for buy-to-let borrowers.
“In addition to the reduced rates, we offer different fee and incentive combinations across the range, including cashback, as part of our ongoing efforts to improve our buy-to-let proposition.”
He adds: “Earlier changes we’ve made, such as simplifying criteria and removing the minimum income requirement, have been well-received by brokers. We continue to work closely with our intermediary partners to better meet their needs, and those of their clients, in this important sector.”
Will you be affected by the buy-to-let portfolio plans?
