70% of portfolio landlords have found it harder to secure a mortgage since the PRA changes were introduced, according to figures from Foundation Home Loans, based on research by BDRC Continental.
51% of landlords owning between one and three buy-to-let mortgages felt the same.
Meanwhile, 48% of landlords aware of the PRA changes think they will slow down the process of securing a mortgage, with two-thirds of those who own 11 or more properties believing the range of mortgage products available to them will be reduced. Furthermore, 28% believe the changes will make it more likely for their mortgage application to be rejected.
Jeff Knight, marketing director of Foundation Home Loans, said: “Whether these figures are to do with a natural period of adjustment or become the new norm remains to be seen. Nonetheless, in order to make this as smooth a transition as possible, brokers and lenders must work together to ensure things do not become unnecessarily challenging.
“Our research last year proved that, at the end of the day, brokers and landlords are after pragmatic and straight forward processes. Considering the significant take-up from this group, we devised a proposition to make application as simple as possible – for example, with no need for evidence of a business plan.”
