1. ADVISING IN THE NEW BTL LANDSCAPE

3. OPPORTUNITY FOR ADVISERS
Large lender appetite
Increased demand from landlords
Increased revenue
Referrals from other brokers and professionals

4. SUMMARY OF CHANGES Stamp duty Wear and tear allowance Tax changes
PRA changes to affordability
PRA changes for portfolio landlords
Ban on letting agents fees
HMO reform
EPC changes (
Interest Rate rise

5. ALTERNATIVE PROPERTY HOLIDAY LETS
COMMERCIAL PROPERTY
Lower stamp duty costs
Mortgage payments offset for tax purposes, even for individual applicants
Partially offset for semi commercial also
Must qualify as a Holiday Let business
Mortgage payments offset for tax purposes, even for individual applicants
Lenders not bound by PRA affordability

6. ALTERNATIVE STRATEGIES
Property refurbishments
Bridge, develop and sell or rent
HMO and multi let property

7. ASSESSING AFFORDABILITY
Subject property rental calculation
Background portfolio aggregate rental calculation
Individual background property rental calculation
Background portfolio aggregate LTV
Minimum income requirements

8. Rent to cover actual payments
LENDER
SUBJECT PROPERTY INDIVIDUAL
(Basic tax/higher tax)
5 YEAR FIXED RATE STRESS TEST
BACK GROUND PORTFOLIO AGGREGATE
B/G LTV MAX
B/G PORTFOLIO MAX NO.
COVENTRY
125% - 5.5%
@ 5%
5.5%
65% 10
FLEET 5%
None
unlimited
TMW
125% - 5.5%
@ 4.99%
4.5% - 5.5%
65-75%
KENT RELIANCE
125% - 5.5%
@ pay rate
VIDA
115% - 5.5%
Rent to cover actual payments
80% 50
LENDER COMPARISON

9. DOCUMENT REQUIREMENTS
Spreadsheet – key to enable background calculations and to place deals with the correct lender
Portfolio landlords subject to specialist underwriting
Business plan
Cashflow
Asset and Liability

10. TOOLS AND SUPPORT
BROKER TOOL BOX

11. HELPDESK www.connectbrokers.co.uk 01708 676135
Connect for Intermediaries is a trading style of Connect IFA ltd, which is regulated and authorised by the Financial Conduct Authority