Seven in 10 portfolio landlords have found it more difficult to obtain a mortgage since the introduction of the PRA changes on 30th September 2017, according to the latest data
Figures from Foundation Home Loans – based on research by BDRC Continental – have also revealed that 51% of landlords who owned between one and three buy-to-let mortgages felt the same.
The PRA regulatory changes have resulted in lenders amending the way in which buy-to-let mortgage applications are underwritten for portfolio landlords (those with four or more mortgaged properties).
The figures also revealed that almost half of landlords (48%) who were aware of the PRA changes believed the regulation would slow down the process of securing a mortgage.
Two-thirds of those who own 11 or more properties felt that the range of mortgages products available to them would be reduced.
More than a quarter of landlords (28%) believed the changes would make it more likely that their mortgage application would be rejected.
“Whether these figures are to do with a natural period of adjustment or become the new norm remains to be seen,” said Jeff Knight, marketing director at Foundation Home Loans.
“Nonetheless, in order to make this as smooth a transition as possible, brokers and lenders must work together to ensure things do not become unnecessarily challenging.
“Our research last year proved that, at the end of the day, brokers and landlords are after pragmatic and straightforward processes.
“Considering the significant take-up from this group, we devised a proposition to make application as simple as possible – for example, with no need for evidence of a business plan.”
