Newcastle Building Society has announced that changes recently announced by the PRA around buy-to-let portfolio lending will not affect its existing policy as it has no plans to enter the portfolio landlord market.
The rules define a portfolio landlord as a borrower with four or more mortgaged properties, who are now subect to tougher underwriting standards and need to provide details of their assets and liabilities, as well as declare future investment property intentions.
The maximum number of mortgaged buy-to-let properties accepted by Newcastle BS will remain at three, which is not considered as portfolio landlord lending.
The lender stressed that all applications will continue to be manually assessed by its team of specialist underwriters to ensure continued responsible lending.
Last month, Co-Operative Bank and its intermediary arm Platform announced that it would no longer lend to clients who own more than three buy-to-let properties.
Newcastle BS has also has cut rates on a number of fixed rate residential products and introduced free legal fees on many of its products.
Reduced products include a ten-year fixed rate which is now available at 3.35% up to 80% LTV and an 80% LTV two-year fixed rate at 2.15%.
Products come with no reservation or completion fees, free standard valuation, free legal fees for remortgages or £200 cashback for house purchases.
Ben Smith, Head of Product Development at Newcastle Intermediaries, stated: “We have reassessed all of our rates in a bid to offer borrowers choice and flexibility.
“Whilst rates across the market are rising ahead of a potential base rate rise in November, I’m pleased we can offer borrowers a competitive range of fixed rate products. Additionally, our free legal fee feature is ideal for the growing remortgage market.”