Help is at hands for brokers, says OneSavings Bank’s Adrian Moloney ahead of new lending criteria

MortgagesBuy To Let

Adrian Moloney, sales director at OneSavings Bank, has welcomed the new lending criteria for portfolio landlords to help brokers prepare early for the upcoming second phase of PRA changes.

From 1st October the specialist lending group, which includes the Kent Reliance and InterBay brands, will now require portfolio landlords with four or more mortgaged properties to provide a business plan, assets and liabilities statement and cash flow statement in support of any mortgage application.

Details of the borrower’s wider buy-to-let portfolio will also need to be provided and assessed as part of the underwriting process. Portfolio landlords will be subject to an interest rate stress test of 5% on the rest of their portfolio and must meet or exceed an interest cover ratio of 125%.

And Mr Moloney said: “Brokers have had to move quickly to update their advice following a raft of tax and regulatory changes to the buy to let sector, and will need to do so again once the upcoming portfolio landlord changes land in October. There’s no doubt that greater scrutiny on loan affordability will be a good thing for the sustainability of the sector, but it will also mean more of an administrative burden.

“OSB will keep things simple for brokers. We’ve always welcomed portfolio landlords and the changes here cement our position as the lender of choice for these borrowers. We’ve chosen to announce our criteria well ahead of the October deadline, to help brokers prepare for the changes in good time so they can feel confident when preparing clients to submit a portfolio application.

"Together with the new buy-to-let hub, we’re doing all we can to transition brokers and their clients into the new landscape with the minimum of fuss.”


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