Landlords urged to discuss buy to let changes with brokers and lenders

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The Prudential Regulatory Authority (PRA) has made changes to the affordability rules on buy to let commercial mortgages, which could make it more difficult for landlords to obtain new

mortgages. The National Landlords Association (NLA) wants lenders and brokers to contact landlords to discuss how the new PRA rules will affect them.


NLA research discovered that 55% of landlords are not fully aware of the details of the PRA changes. The new affordability rules mainly affect portfolio landlords with four or more properties that have outstanding mortgages on them. The rules are designed to make sure that the expected rents from properties more than cover the mortgage repayments even if interest rates were to rise by a few percent. The affordability rules apply to remortgages and buy to let mortgages for new property purchases.

The NLA’s found that only 8% of lenders and 16% of brokers had contacted landlords to make them aware of the changes. For large portfolio landlords, 26% of them had been contacted by their broker. Richard Lambert, CEO of the NLA said:

“The PRA’s changes will greatly affect the ability of landlords to find new finance and continue to provide good quality affordable housing to those who need it.”

Richard Lambert said that brokers and lenders might not have felt it necessary to contact landlords whose current commercial mortgage deals were not close to expiring. He wants brokers or lenders to talk to landlords about the changes sooner rather than later.

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