Portfolio Buy to Let
What is a Portfolio Landlord?
From September 2017, the PRA has also required lenders to ask additional questions of “portfolio landlords” when issuing new loans. The PRA's definition of a portfolio landlord is "borrowers with four or more distinct mortgaged buy-to-let properties, either together or separately, in aggregate."
If you fall into this category, it will mean lenders need to carry out additional checks when underwriting your mortgage application, these include:
• Your property investment experience
• The gross amount of your mortgage borrowing across all properties
• Your assets and liabilities, including tax liability
• Historical and future expected cash flow from your portfolio
• All sources of income
Many full time or professional landlords – those who make their income primarily from rental property – will fall under this bracket, and will need to apply for portfolio landlord mortgages instead of standard buy to let finance.
How can we help?
Jordan Lynch has been arranging mortgages for portfolio landlords since 2006. We take the time to get a detailed understanding of your portfolio and long term aims and will then provide you with a tailored solution that fits your plans. We have a wide range of lenders who are able to support portfolio landlords and use our connections with these lenders to get you the most cost-effective terms available. Whether it is a single loan secured against multiple properties or individual mortgages across the portfolio, we will take care of the hard work for you. We can also work alongside your accountant to ensure you find the right balance between tax efficiency and long term value for money on your assets.
How many buy to let mortgages can I have?
As long as you meet the criteria, there’s no limit to the maximum number of buy-to-let mortgages you can have.
Different lenders may have their own rules about the maximum number of loans they can advance to an individual, but there are many portfolio mortgage lenders in the market that want to help you to grow your investment.
Are there any age restrictions?
The minimum age for most lenders is 18. For older borrowers who are considering multiple buy-to-let mortgages, lenders may stipulate a maximum age at application or a maximum age at the end of the mortgage term. Jordan Lynch also has access to a number of buy-to-let lenders that do not have a maximum age.
What documents will I need to provide?
Typically you will need the following:
Proof of address
Proof of income (Tax calculations (Sa302’s) and tax year overviews)
Bank statements – showing rental credits