On the 30th September 2017, lenders will have further checks in place for Portfolio Landlords based on guidelines from the Prudential Regulation Authority. This will typically include any landlord who has four or more buy to let properties.
Why is this being implemented?
The main reason is to ensure that landlords are borrowing sensibly and that banks are lending to them in a sensible manner, reducing their risks as well.
What has happened to date?
Some lenders have already started to publish the ways in which their processes have been updated in readiness for the 30th September deadline. One lender that I am aware has already advised that their processing fee is going up.
What is the likely impact going to be?
Firstly, time will be an issue.
Not just in terms of your own personal time to give them more information but also the time to complete a mortgage may go up too. For example, you will now need to present details on your whole portfolio, not just information regarding the new purchase. The process to complete a mortgage may go up as lenders will need to add more steps, thereby increasing the time, to administer.
Secondly, costs may go up.
As the lender will need to add more resource to this, that will lead to an additional cost. We have already seen one lender increase their processing fee and this may lead others to do the same.
How can yourbuy2let.com help me?
yourbuy2let.com can take away the administration and time impact of these changes.
For those of you using yourbuy2let.com today, you will know that all of the many of the details required are already available at the click of a few buttons. In readiness for this change we have updated the platform to enable you to add personal expenses as well to give that more holistic view the banks are looking for.
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