Portfolio Mortgages

Expertise where it counts – Portfolio Mortgage solutions that we’re proud of

When it comes to Portfolio mortgages for your buy to lets, you want an experienced and honest mortgage broker with no surprises.

So we’ll always tell you the things you really need to know up front.

Common Portfolio Mortgage Questions

As a portfolio landlord or someone planning to build a portfolio, you’ll probably have lots of questions.

A portfolio buy to let mortgage is a very specialist sector and working with an experienced team of independent buy to let mortgage brokers will hugely help.

Do you have a question about a portfolio mortgage?
If you have a question about a portfolio mortgage that is not covered here, please contact us.
Why were portfolio landlord changes introduced?
The Bank of England identified the buy to let mortgage market as posing a potential risk to the financial system. They identified that if landlords came into payment difficulties they would likely sell, in turn, potentially flooding the system with properties that would affect home buyers

As a result The Bank of England gained new powers and in October 2017 the Prudential Regulation Authority introduced regulatory changes. It meant buy to let lenders had to change the way they assess buy to let applications for landlords with four or more mortgaged buy to let properties.

Landlords are now required to provide business plans, assets and liabilities stataments, and cash flow forcasts. The regulationary changes have made it much more complex to get buy to let mortgages for landlords with portfolios. This is not just affecting landlords with large portfolio’s but also smaller landlords who might have had three properties,  and who are now looking to buy their fourth.

What is the lending criteria for portfolio buy to let landlords?
Buy to let lenders now carry out specialist affordability checks assessing the whole portfolio to ensure an applicant is not overexposed. Rememeber this is only applicable for portfolio landlords.

The key difference in the past was each buy to let was assessed on its own merits. Now the portfolio rules mean a lender will no longer look in isolation at a deal, but will want to know the details of the whole portfolio.

LOAN TO VALUE LIMITS:

Remember the whole potfolio is stress tested including the one you might be looking to buy and lenders will have a percentage limit based on the loan to value (LTV) they may not want to exceed.

CERTAIN LENDERS WILL RESTRICT THEIR PORTFOLIO EXPOSURE:

Lenders usually have limits on the number and/or overall value of the properties that they will lend to you.  In other words; some lenders may not lend more than 5 properties with you, while others may have a 20 property limit. Of course the specific lending criteria does change, so always speak to one of our experienced portfolio mortgage brokers who will be able to look into what the best options are for you right now.

EXPERIENCE & BUSINESS PLAN:

Lenders are looking closely to not just understand your general experiende, but the specific experience that you may have. In other words, do you specialise in specific areas, do you focus on high or low end properties, do you focus on flats or houses, what are areas are you in?

Lenders really want to dig deep into how the business operates and the experience of the landlord. Is the landlord investing in similar things or are they sudenly doing something different?

CERTAIN LENDERS WILL ALSO MONITOR OVER EXPOSURE IN AREAS.

Lenders are constantly assessing their risk exposure. How many buy to let mortgages do they have in a street, a town, a city, a region etc.

REMEMBER LENDING CRITERIA IS NOT STATIC:

Lending rules and regulations are constantly changing, so make sure you speak to an experienced mortgage broker who has experience in the potfolio lending space.

What is a portfolio landlord?
A portfolio landlord is someone with four or more mortgaged buy to let properties.

Due to regulationary changes introduced by the Prudential Regulation Authority in October 2017, mortgage lenders had to change the way they assess buy to let applications for landlords with four or more mortgaged buy to let properties.

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Celebrating our success rates. Making you jump for joy

We may be mortgage brokers, but we’re not a bunch of bankers! We are independent which means we only work for you. Our team are incentivised not on sales, but providing the best service for you.

FIND OUT MORE ABOUT US

Our Success Rates

( Second quarter 2018 )

%

Research

  • We assess
  • You instruct us
  • We research
  • We find the best deal for you

%

Agreement In Principle

  • You agree to the deal
  • We submit the first stage of your application
  • You get an agreement in principle

%

Mortgage Offer

  • We submit the second stage of your application
  • We present your application in the best possible manner
  • They assess your situation
  • We support you throughout the process
  • They assess your property
  • You receive your mortgage offer

%

Completion

  • Technically our job is done but we also like to help
  • We liaise with solicitors and estate agents
  • We keep you updated
  • You achieve your goals
Talk to the Portfolio Buy To Let mortgage experts

Call us on (01237) 472321

or enquire now

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