Landbay eases stress tests for portfolio landlords

LANDBAY has altered its stress tests for portfolio landlords applying for buy-to-let loans on the platforms.

The buy-to-let peer-to-peer lender will now require rents to cover 125 per cent of the mortgage at an interest rate of five per cent, dropping from 5.5 per cent previously.

It comes amid Prudential Regulation Authority rules that require lenders to apply additional affordability tests on landlords with portfolios of four or more mortgaged properties.

Landbay says it is showing its commitment to professional landlords by easing the criteria but would still be prudent in its approach.

This is the latest update to Landbay’s credit policy.

Landbay last week announced that it has extended its lending criteria to include first time landlords who do not currently own a residential property, designed to help professional people who are renting to invest in property themselves and get a foot on the housing ladder.

“The buy to let market is set to become more complex in 2018, and as landlords move to navigate the changing environment, so too must lenders ensure that their approach to lending is robust,”
Paul Brett, managing director of intermediaries at Landbay, said.

“This is why we have chosen to refine our underlying portfolio stress tests, demonstrating our ongoing commitment to portfolio landlords.”

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