Are you a landlord with buy-to-let properties already to your name? Are you interested in growing your portfolio? Well, then we can help and ensure that you get the expert advice you need. We’ll ensure that you find the right solution at the ideal price for your budget requirements.
Buy To Let Portfolio Mortgages Explained
If you have a portfolio of properties then you can keep all your buy-to-let mortgages together under the same package. So, essentially, it’s treated as a collective account rather than individual options. This means that it is managed by one lender and there’s only one payment every month.
The portfolio can be owned personally or registered as a limited company. The costs are treated as they would be for a typical business. You need two properties to be eligible for this type of mortgage option.
With this option, you will find that your mortgage is a lot simpler to manage. You can say goodbye to multiple statements and keep things organised.
You might be wondering why you need a portfolio mortgage. This may be due to the new laws and regulations that were brought in through 2016 by Prudential Regulation Authority. These are based on tightening up affordability tests and implementing additional checks as well.
According to the PRA, if you have four or more mortgaged buy-to-let properties, you are a portfolio landlord. What does this mean? Often referred to as portfolio mortgage stress testing, this is about making sure that you are in a strong position financially. While different lenders look at the rules in various ways, there are a few factors that are always considered. These include:
Assets and liabilities
Details of any mortgages
Expected and future cash flow
Income from properties as well as other sources
Since they are often interpreted differently criteria can vary dramatically. So, you could have a group of properties that are covering mortgage payments but one that isn’t. If that’s the case you might be approved by one lender and rejected by another.
How Many Buy To Let Mortgages Is The Maximum?
While there are stricter rules on getting numerous buy-to-let mortgages some lenders have limits on the number you can have, whereas others don’t. You often just need to make sure that you are meeting the criteria.
Typically, lenders can have their own set maximum number that they will provide to someone. However, there are countless others that will be keen to help you grow. If you do want to grow and get multiple buy-to-let properties as part of your portfolio, it’s crucial that your papers are in order. You need to have all the information ready when you speak to a professional adviser.
If you need further assistance or wish to apply for a portfolio mortgage, Ascot Mortgages can help. We can help you get the buy to let portfolio mortgage set up the right way that works for you, and what you want to achieve.