What is a Portfolio Landlord?
A portfolio landlord owns four or more mortgaged buy-to-let (BTL) properties. This classification means lenders will evaluate your entire property portfolio when assessing your mortgage application. They’ll look at your portfolio size, rental income, and existing loans.
Why Does It Matter?
Lenders view portfolio landlords as higher risk. This is due to the complexity of managing multiple properties and the stress test applied to ensure your rental income can cover mortgage payments. For this reason, some lenders won’t lend to portfolio landlords, while others have stricter requirements.
What Do Lenders Require?
When applying for mortgages for portfolio landlords, you’ll need to provide:
Property Portfolio Details
A full list of your properties, including addresses, values, and rental income.
Business Plan
This outlines how you manage and grow your portfolio.
Assets and Liabilities Statement
A summary of your financial position.
Stress Test Results
Lenders will calculate if your portfolio’s rental income meets the minimum rental requirements under different interest rate scenarios.
How Lenders Assess Portfolio Landlords
- Rental Calculations: Ensuring your properties meet rental stress test thresholds.
- Existing Portfolio Review: Evaluating your current mortgaged BTL properties for overall performance and viability.
• Affordability Checks: Calculating if your rental income can support additional borrowing.
Tips for Portfolio Landlords
- Organise Your Documentation: Have your property portfolios, business plans, and financial statements ready.
- Use a Specialist Broker: An expert broker can find the right lenders and make the process easier.
- Plan Ahead: Make sure your current properties match your goals and help you secure more mortgages.
Why Choose Compare the Mortgage?
At The Landlords Broker, we specialise in helping landlords secure the right mortgages for their portfolios. Here’s how we can assist:
- Tailored Advice: We’ll guide you through the stress test and other lender requirements.
- Wide Lender Access: Gain access to lenders offering competitive rates for portfolio landlords.
- Comprehensive Support: From applications to securing mortgages, we handle the details for you.
Contact Us Today
If you’re managing multiple properties, let us simplify your mortgage process. Contact Compare the Mortgage for expert advice on building and managing your property portfolio.