The PRA regulates financial services firms in many different sectors, but we use this term to refer to specifically to the rules applied in the BTL Mortgage market. The rules break down in to two main areas; Affordability and Portfolio Landlords. For Borrowers who borrow in their personal name, the Affordability rules state that Lenders have to ensure that the Gross Rental covers the Mortgage Interest at between 125% and 145% (depending on your tax rate) calculated at a Stress Rate of 5.5%. The rules are different if you take a 5 year fixed rate, or you borrow in a company. Portfolio Landlords are classified as someone that has 4 or more mortgaged BTL properties. If you qualify, then you have to provide mountains of paperwork; Property Schedule, Business Plan, Income & Expenditure amongst others. For a full explanation of the Rules please click here to read our ‘How to get a BTL mortgage’ section. Please also see MMR for the rules that apply to the regulated mortgage market and HNW Exemption for further details.