The Prudential Regulation Authority's (PRA) changes to portfolio landlord underwriting standards apply from Saturday 30 September, for all new applications. Until this date, our existing criteria applies.
TMW's portfolio landlord definition
A portfolio landlord is a borrower with four or more distinct mortgaged Buy to Let UK rental properties (or seven or more for remortgage applications without capital raising).Additional information
This includes holiday lets, properties owned through a limited company, ‘consent to let’ properties and all BTL mortgages owned solely or jointly by the applicant(s).
We'll only accept applications from portfolio landlords that have at least two years' letting experience (at least one applicant must meet this requirement on joint applications). We won’t consider foreign properties when assessing portfolio landlords.
We'll continue to check all new TMW mortgage applications to ensure your client can cover their monthly mortgage interest payment.
We’ll also assess the existing portfolio to ensure the overall aggregate LTV and ICR is sustainable. The assessment will be based on the entire portfolio, including the new property and any rental properties without a mortgage.
For full details, view our portfolio landlord affordability assessment.
Keying applications in TMW Online - key changes
- We'll now ask for your client's personal income on all cases.
- At DIP stage, we'll look at gross annual buy to let income as well as the total number of properties, to identify if your client is/will be a portfolio landlord on completion of the application.
- If your client has more than 4 properties, we'll ask for details of the total value and outstanding mortgage balances secured against the portfolio.
Packaging applications - key changes
All portfolio landlords will need to provide:
- Three months' current account statements showing rental payments.
- A property schedule, either by:
- Keying the details into our new Portfolio Portal.
- Or completing our property schedule form and uploading into the portal.
Once submitted, the details will be automatically validated and the results will be sent to our dedicated team of underwriters for assessment.
Depending on case complexity and portfolio size, we may request further supporting information such as a business plan.
Once the application has been submitted, we may occasionally ask for further information.
So your case can be processed efficiently, please submit all requested proofs and additional supporting information but only when this is asked for.