Vida: it’s ‘business as usual’ for portfolio landlords after PRA changes

Vida's Buy to Let Affordability
Vida Homeloans has announced its continuing commitment to brokers serving the Buy
to Let portfolio landlord market once the PRA changes go live on 1st October. Vida has always assessed the wider portfolio as part of its underwriting approach, so this approach is a continuation of its successful proposition which has made up a significant part of its lending to date.

Vida’s proposition, to be launched on 28th September, is summarised as follows:

  • Vida's portfolio landlord definition is someone who has 4 BTL properties or more at application (including unencumbered properties).
  • To reduce the burden on brokers, Vida 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 £ for £ remortgage, the notional rate is 5%, otherwise 5.5% applies. For a 5 year fixed rate, the cover is based on the product rate.
  • Vida will continue to lend on a maximum of 15 properties with an increased maximum portfolio of £2m with Vida.
  • Vida will continue to lend on HMOs and MUBs as part of its portfolio landlord proposition.
Full details are contained in Vida's PRA Broker Guide.

Louisa Sedgwick, Director of Sales – Mortgages, commented: "We are really excited to continue to support BTL 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."