Castle Trust outlines PRA phase 2 stance

Castle Trust outlines PRA phase 2 stance

Castle Trust Capital has revealed its approach to implementing of the PRA Phase 2 changes, which require a specialist approach to underwriting for portfolio landlords from 30 September.

A portfolio landlord is defined as someone with interest in four or more distinct mortgaged buy-to-let properties, which could be buy-to-let properties that are solely or jointly owned by the applicant, and/or by a company in which the applicant has a share.

Castle Trust, which already includes a Portfolio Landlord Statement as part of its underwriting process, has published the approach it will take (including the portfolio rental calculations it will use) on its website.

This information is available at www.castletrust.co.uk/underwriting

Matthew Wyles (pictured), group executive director at Castle Trust Capital, said: “The PRA’s requirement for underwriters to take a proportionate approach to portfolio landlords, based on their knowledge of the borrower, is simply an articulation of sound commercial lending.

“Castle Trust has always specialised in larger, more complex buy-to-let portfolios and so the provisions of SS13/16 are just business as usual for us.

“This said, it is important that we are clear and transparent with the market and so, by laying out our approach and the portfolio rental calculations that we use, we can eliminate any element of doubt.”