What is a Portfolio Landlord?
Since September 2017 the Bank of England’s Prudential Regulation Authority (PRA) changed its rules around landlords who own 4 or more mortgaged buy-to-let properties. Landlords who fall into this category will now be classed as a portfolio landlord. The new rules are designed to reduce irresponsible lending and make buy-to-let mortgage lending requirements tighter.
How Do The Changes Affect Portfolio Landlords?
Historically when assessing an individual application buy to let lenders would ignore background properties within the portfolio and assume that they were self-financing.
As part of new guidelines lenders will now need to review a landlord’s entire property portfolio when underwriting a single mortgage application. This will mean that you are going to have to provide lenders with in depth information about your whole property portfolio. To further complicate matters what you need to provide will vary from lender to lender.
What Will I Need To Provide To Apply?
This varies from lender to lender but typically you will need to provide:
- Property portfolio spreadsheet
- Cashflow forecast spreadsheet
- Income and expenditure spreadsheet
- Business plan
- Three months’ bank statements
- SA302s and tax overviews from HMRC
- Tenancy agreements for all properties
How Can Jordan Lynch Assist?
The expert BTL advice team at Jordan Lynch specialise in portfolio landlord applications and have a wealth of knowledge and experience dealing with all lenders across the market. We work with both our BTL clients and lenders to ensure applications are presented accurately to ensure a smooth and efficient process for both parties.