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PRA Changes

New BTL underwriting standards are coming

Are you ready to go?

Take a first look at our upcoming criteria accommodating changes to underwriting standards for Portfolio Landlords and download samples of the forms we will require.

Jump to:

Sample forms Submitting portfolio information

PRA II - A brief overview

From 1 October 2017, the PRA's new underwriting standards will come into force. From that day forward, landlords with four or more distinct mortgaged Buy to Let properties will be defined as 'portfolio landlords'.

Due to the "inherently more complex" nature of lending to portfolio landlords, lenders - including Kent Reliance - will be required to take a proportionate approach based on their knowledge of the borrower, their portfolio and any alternative sources of income they have.

Our new way of working

Our new criteria, accommodating the Portfolio Landlord changes, will commence from 1 October 2017. The criteria will apply when brokers are submitting cases for Portfolio Landlords, who can be identified as any borrower with four or more mortgaged properties.

In line with the new rules, we will require the following documents from Portfolio Landlords for all mortgage applications. Click on any of the below to view and download a sample version:

We will also require details of the borrower’s wider Buy to Let portfolio, which we will assess as part of the underwriting process.

It’s also important to know that any portfolio that is not currently with Kent Reliance will be subject to an interest rate stress test of 5%, and will need to meet or exceed an ICR of 125%.

Submitting portfolio information

As you may know, brokers will be able to submit Portfolio Landlord information via our new submission platform, which is currently being developed with our partners at eTech. The platform has been designed to offer brokers one, straightforward online solution for providing important information relating to their clients’ cases, and can be accessed via our website.

Find out more about our partnership with eTech

Find out more

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krbs, Kent Reliance Banking Services and Kent Reliance are trading names of OneSavings Bank plc. Registered in England and Wales (company number 7312896). Registered office: Reliance House, Sun Pier, Chatham, Kent, ME4 4ET. OneSavings Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (registered number 530504). We subscribe to the Financial Services Compensation Scheme and the Financial Ombudsman Service.