Vida Homeloans has announced its strategy for the PRA changes which come into force on 1 October.
Vida’s proposition, to be launched on 28th September, is as follows:
- Vida’s portfolio landlord definition is someone who has four buy-to-let properties or more at application (including unencumbered properties).
- The lender will accept existing portfolio schedules to be uploaded if they contain its minimum information requirements. Vida will not require brokers to enter details on a third-party platform for portfolio cases.
- Vida will continue to require a minimum rental income vs mortgage payment ratio of 125%. When pound for pound remortgage, the notional rate is 5%, otherwise 5.5% applies. For a 5 year fixed rate, the cover is based on the product rate.
- It will continue to lend on a maximum of 15 properties with an increased maximum portfolio of £2m with Vida.
- It will continue to lend on HMOs and MUBs as part of its portfolio landlord proposition.
Louisa Sedgwick, director of sales – mortgages, said: “We are really excited to continue to support buy-to-let portfolio landlords post the PRA changes, and we are making very few changes to our existing underwriting policies and processes to ensure that brokers do not face extra work as a result.”