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PRA Rules

Definition

Prudential Regulation Authority regulations implemented in 2017 that tightened lending standards for buy-to-let mortgages, particularly for portfolio landlords. These rules require more thorough affordability assessments, stress testing, and verification of rental income and tax obligations.

Portfolio LandlordHMO MortgageInterest Coverage Ratio (ICR)HMO ValuationDebt Service Coverage Ratio (DSCR)Stress TestingNet Rental YieldVoid PeriodsCapital Gains Tax (CGT)

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