Accord Buy-To-Let unveils lending criteria for portfolio landlords

buy-to-let to let

Accord is the latest lender to reveal new criteria for portfolio landlords who own four or more mortgaged buy-to-let properties, ahead of 30th September PRA legislative changes, affecting buy-to-let mortgage underwriting.

Accord has announced that its existing rental calculations will apply for new borrowing while all background properties must collectively meet a minimum rental calculation of 135% interest coverage ratio (ICR) at a stressed rate of 5%.

Chris Maggs, commercial manager at Accord Buy-To-Let, said:

With so many changes happening to the buy-to-let market recently we believe it’s important to be transparent about our changes to criteria so brokers and landlords have time to prepare ahead of the new rules.

Accord’s new assessment of a portfolio landlord will consider an individual’s existing experience in the buy-to-let market, their full property portfolio and any outstanding mortgages along with their assets and liabilities.

However, the changes will not affect loan-to-value limits, maximum loan sizes or minimum income criteria. Stress rates and the number of properties accepted are set to remain the same.

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.