"We have focused our attention to ensure that we and our brokers are best placed to meet these required changes."
The changes will mean more stringent affordability assessments across the market and lenders will need to apply a specialist underwriting approach.
Under the new regulation, portfolio landlord clients will be defined as those who have four or more mortgaged buy-to-let properties.
Aldermore will therefore split portfolio landlords into two categories to determine what further information needs to be provided to underwrite the individual case.
Where the applicant up to 10 mortgaged buy-to-let properties with Aldermore, a portfolio schedule and business plan will be required.
Where the applicant has 11 or more mortgaged buy-to-let properties, an additional 12 month cash flow forecast statement and statement of assets and liabilities will be required, along with a face to face interview.
Other checks will include portfolio affordability testing, rental income validation by postcode, and where personal income is used, assessment of living costs and essential expenditure.
Charles McDowell, Commercial Director, Mortgages, at Aldermore, said: “We recognise that there are big changes ahead and as a business, we have focused our attention to ensure that we and our brokers are best placed to meet these required changes. Having spoken to brokers, we recognise that lenders need to respond to the changes as there is currently not enough support available for brokers who need to adapt. This is why we have created the guides which we believe will help to provide the necessary information and support.
“We want to assure our broker partners that we remain committed to the buy-to-let market by doing everything we can to support portfolio landlords when these changes are implemented later in the year.“
