Buy-to-let empires face a regulatory revolt

From the end of this month, lenders will have to take a more stringent approach to buy-to-let mortgage applications from landlords. Emma Lunn explains.

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Portfolio landlords face a mountain of new paperwork
(Image credit: AVAVA)

Building your own buy-to-let empire? Watch out. From the end of this month, lenders will have to take a more stringent approach to buy-to-let mortgage applications from landlords who own four or more mortgaged properties ("portfolio landlords"). Currently, most lenders assess a buy-to-let application based on the achievable rental income and the property's value. But from 30 September, lenders will be required by the Prudential Regulation Authority, a financial regulator, to assess the affordability and profitability of the portfolio as a whole each time a landlord remortgages a single property.

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Emma Lunn

Emma Lunn is a multi-award-winning journalist who specialises in personal finance and consumer issues. With more than 18 years’ experience in personal finance, Emma has covered topics including mortgages, first-time buyers, leasehold, banking, debt, budgeting, broadband, energy, pensions and investments. Emma’s one of the most prolific freelance personal finance journalists with a back catalogue of work in newspapers such as The Guardian, The Independent, The Daily Telegraph, the Mail on Sunday and the Mirror. As a freelancer she has also completed various in-house contracts at The Guardian, The Independent, Mortgage Solutions, Orange and Moneywise. 

She also writes regularly for specialist magazines and websites such as Property Hub, Mortgage Strategy and YourMoney.com. She’s particularly proud of her work writing about the leasehold sector and a Guardian front-page story about a dodgy landlord. She has a real passion for helping people learn about money – especially when many people are struggling to get by in today’s challenging economic climate – and prides herself on simplifying complex subjects.