On 30 September 2017 Pepper Money adopted the PRAs new rules regarding the underwriting of mortgage applications from landlords with 4 or more mortgaged rental properties (portfolio landlords).
The new rules mean that in future we will require portfolio landlords to provide the following information:
- A schedule listing details, including addresses, of the properties in their portfolio.
- A statement of assets and liabilities, confirming the value of each property, rent received and any outstanding mortgages.
- Landlords will also be asked to detail any void periods experienced in the previous 12 months and give a brief overview of their intentions for each property.
We will, of course, want to check the affordability of the entire property portfolio, including provision for any void periods. We will also seek confirmation of any earned or pension income and understand the applicant’s future intentions regarding their portfolio.
If you would like to speak to us about a client who owns 4 or more rental properties, please phone 03333 701 101.