30th September PRA changes – clarity for your clients
The PRA is set to implement changes to underwriting standards for BTL mortgages (SS13/16) from 30th September 2017, affecting how lenders underwrite applications from portfolio landlords.
• One-three mortgaged properties: Relates to any property/properties owned and mortgaged for all customers, including the property intended for purchase at that time.
• Four or more mortgaged properties (portfolio landlords): Where the customer is looking to buy or refinance their 4th mortgaged investment property, they will now be classed as a portfolio landlord.
Lenders must now ensure they have a full picture of the customer and a complete understanding of their position with regard to the investment portfolio. This case-by-case approach is one that Shawbrook has always been proud to adopt, and consequently the changes have a minimal impact on how we transact.
In support of the market we have developed a more detailed summary of the changes and what they may mean for our market that we would be happy to share with you.
To receive the relevant documentation email propertymarketing@shawbrook.co.uk