Portfolio Landlord Mortgages
Over the years we have helped clients move from being a first-time landlord to portfolio landlords and so we are well-versed in the complexities of this type of application.
Who are portfolio landlords?
Portfolio landlords are defined by Lenders as individuals who have four or more mortgaged Buy to Let (BTL) properties.
Usually, any rental properties that are owned outright (unencumbered) are not considered as part of the portfolio for mortgage application purposes, although sometimes it can be advantageous from a borrowing perspective if you do have one or more unencumbered properties.
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The portfolio can include buy to lets, consent to let properties, holiday lets and properties owned via a limited company.
Why am I treated differently if I have more than four mortgaged BTLs?
Prior to 2017, the Bank of England’s Prudential Regulation Authority found that there was an increase in observed arrears rates of landlords with four or more mortgaged BTL properties.
These findings resulted in a standardisation of what a Portfolio Landlord was and the need for specialist underwriting to better understand the landlord and their properties. Lenders, under the FCA, have an obligation to ensure that their lending is sustainable for the borrower, so although it may feel like it’s another hoop to jump through it is actually another way that the FCA are ensuring your financial wellbeing.
Do I need a broker as a Portfolio Landlord?
It can be more challenging to get another BTL mortgage once you become a portfolio landlord as not all lenders will lend to portfolio landlords and those that do may need you to go through a broker to access the mortgage products.
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As a whole of market brokerage, we have access to many specialist lenders who offer BTL mortgages for portfolio landlords. We also work with you in order to satisfy the complex lender requirements in order for you to access the most competitive deals.
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So, although you don’t have to use a broker, you’ll likely get a better rate with one than if you don’t. (Not to mention the hours saved from paperwork)
Next Steps
If you’re looking to explore your options for financing your next Buy to Let purchase, request a call back from one of our advisers for a no obligation chat.
