"By lifting the maximum portfolio size from eight to 10 mortgaged rental properties, we’re recognising the growth in portfolio buy-to-let as the market matures."
In line with new PRA rules, Leeds Building Society will define a portfolio landlord as a borrower who has four or more mortgaged rental properties. Portfolio landlords will need to provide details of their assets and liabilities, and declare future investment property intentions.
Further information, such as cash flow, will be requested only in more complex cases, which the Society expects will account for "a very small proportion of applications".
Leeds has increased the maximum number of holiday lets by 33% and lifted its maximum portfolio size from eight to 10 mortgaged rental properties.
The Society says there will be no changes to its existing loan to value limits, maximum loan size, Interest Coverage Ratio or stress rates.
Leeds previously made changes to its BTL criteria in January, including increasing ICR for buy-to-let and holiday let mortgages from 1.25% to 140%.
It introduced a 5.50% affordability stress test rate for purchase and capital raising re-mortgages and a 5.00% rate where there is no additional borrowing.
An ICR assessment is not required for existing Society BTL customers at the end of their existing deal, with no additional borrowing.
It also removed minimum income requirements (previously £25k pa or £40k for joint applicants).
Jaedon Green, Leeds Building Society’s Director of Product and Distribution, said: “We’re committed to supporting landlords and the buy-to-let market so will continue to accept mortgage applications from portfolio landlords after 30th September.
“We’ve also increased the maximum number of holiday lets by 33%, which provides intermediaries with greater flexibility to mix and match, using the Leeds Building Society for up to four properties, whether buy-to-let, holiday let or a mixture.
“And by lifting the maximum portfolio size from eight to 10 mortgaged rental properties, we’re recognising the growth in portfolio buy-to-let as the market matures.
“There will be no changes to our existing loan to value limits, maximum loan size, Interest Coverage Ratio or stress rates.
“We’re working very hard to make our buy-to-let proposition simple and straightforward and ensure our service is as broker-friendly as possible.
“To further develop our proposition we’re preparing our underwriting and broker-facing colleagues to ensure that at launch we‘re able to fully support our intermediary partners.”
