PORTFOLIO LANDLORDS

What makes you a portfolio landlord, and what it now means for your mortgages

If you own 4 or more buy to let properties you will now be classed as a ‘portfolio landlord’

by most lenders.

This means you’ve hit the big leagues, you are no longer someone with 1 or 2 flats, you are a professional landlord with a large portfolio of investment properties!

This now changes the sector of lenders that you can use, and more specialist firms will need to be used.

Some things to consider now you’re a portfolio landlord.

Lenders will require detailed information about your portfolio, including a portfolio spreadsheet with property addresses, current valuations, outstanding mortgage balances, and rental income.
If you are operating a LTD Company you will have to provide business accounts showing at least 3 months rental income crediting the accounts.
Current tax returns for the LTD Company/SPV if applicable. Also other income streams to show minimum income requirements.
Current EPC certs will be needed.
On occasions a ‘business plan’ is requested outlining the intentions for your portfolio.

Get ready for higher rates and increased costs!

Portfolio BTL mortgages typically come with higher rates and fees, this is due to increased risks for the lender. Let me check all competitive terms and advise on potentially reducing costs.

So now your portfolio has started to grow, you could probably do with some help managing all those mortgages!

Never miss a product expiry, and always be kept up to date with lenders rates and fees.

High street banks are no longer an option for most portfolio landlords. Specialist lenders often have more favorable terms, but require broker access.

Rental income on the whole portfolio will also be considered. Stress tests are put in place to cover mortgage payments by a set percentage . This is normally 125%-145%, depending on the set up.

If you want to discuss your buy to let properties with a whole of market broker…

Click the ‘Book an Appointment’ button at the top of the page to book our first meeting.

Clarity Wealth Management LLP is authorised and regulated by the Financial Conduct Authority. No: 575252

Registered in England and Wales as a limited liability partnership. No: 0C371189

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