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BM Solutions Announces Criteria Change Ahead of New Portfolio Rules
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
BM Solutions Announces Criteria Change Ahead of New Portfolio Rules
BM Solutions is the latest lender to announce its criteria change ahead of new portfolio underwriting rules for buy-to-let landlords.
The lender has set out the details of its criteria change ahead of the introduction of the Prudential Regulation Authority’s (PRA) tougher underwriting standards next month.
To fully understand the new requirements for portfolio landlords, this handy guide explains everything you need to know: https://www.justlandlords.co.uk/news/portfolio-landlord-underwriting-changes/
From 30th September, BM Solutions will accept a maximum of ten mortgaged buy-to-let properties per applicant, and up to three properties with Lloyds Banking Group.
Under the lender’s criteria change, portfolio landlords will now need minimum earnings of £30,000 earned taxable income per portfolio application, while it will not underwrite portfolios with a maximum aggregate loan-to-value (LTV) ratio above 75%.
The lender has also announced that it will tighten its minimum portfolio affordability requirement by 5%, to 145%.
Applicants with at least four mortgaged buy-to-let properties will have to provide more information when applying for a loan through BM Solutions, including proof of income and supporting documents, but there will be no changes to the lender’s existing process for landlords with three or fewer mortgaged buy-to-let properties.
The Head of BM Solutions, Phil Rickards, comments on the criteria change: “From this week, we are speaking to several thousand brokers up and down the country, covering the new criteria in detail and helping show how it will translate into real time for their businesses.
“There are still a few places remaining, so those still looking to attend should contact their BDM as soon as possible.”
If you are a portfolio landlord or are looking to expand your portfolio, you must be aware of how the PRA’s underwriting changes will affect you when applying for another mortgage.
You can keep up to date with how lenders are reacting to the requirements at Landlord News.
