New buy to let mortgage lending criteria announced by Accord.

If you are a portfolio landlord, the announcement made by Accord regarding the lending criteria of its buy to let mortgages could be of significant interest to you.

Accord is one of a number of lenders who have taken action and altered their criteria ahead of the changes to underwriting standards being introduced on 30^th September 2017 by the Prudential Regulation Authority.

Accord will evaluate a landlord’s competence by looking at:

• what experience they have
• what their assets and liabilities are
• the details of their existing portfolio
• whether they have any outstanding mortgages

New borrowing will be assessed using existing rental calculations. The minimum rental calculation used is 135% ICR stress tested at 5% - all properties in the portfolio must satisfy these standards. Existing conditions also apply to loan to value, income and how much can be borrowed.

For further details about the buy to let mortgages offered by Accord, the planned changes to underwriting as well as other ranges offered by lenders across the UK, contact a Deal Direct advisor.  

Deal Direct are regulated to offer independent mortgage advice but not general financial advice. Therefore, if you wish to discuss the suitability of property as a viable investment, we urge you to contact an independent financial adviser. 

Please note that buy to let mortgage applications from:

• applicants whose intention is to benefit from house price growth
• applicants whose intention is to benefit from rental income
• applicants who are letting to buy

will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.

For impartial, ‘whole of market’ advice on buy to let mortgages, contact Deal Direct on 0800 048 8828.