Landbay has announced today that it is introducing changes to its background underlying portfolio stress tests, amended from 125 per cent at 5.5 per cent, to 125 per cent at 5 per cent.
“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,” said Paul Brett, managing director of intermediaries at Landbay.
“This is why we have chosen to refine our underlying portfolio stress tests, demonstrating our ongoing commitment to portfolio landlords.”
According to Landbay, the new rates “reflect a more prudent approach to lending to portfolio landlords”, as part of the platform’s ongoing commitment to being fully equipped for the recent PRA changes. Landbay has said that if an application fails a stress test, it may consider applications using up to 10 per cent of declared income, subject to a minimum personal income of £100,000.
The update is the latest in a suite of changes to Landbay’s credit policy, aimed at helping brokers and their customers in accessing the specialist solutions they need.
The peer-to-peer lender has also extended its lending criteria to now include first time landlords who do not currently own a residential property, designed to enable professionals who are renting to make their own property investments.