For those with four or more mortgaged properties are considered portfolio landlords. This includes Buy to lets and holiday properties as well as those in a limited company. This means, it could be the same of a sole application with four or more buy to let mortgaged properties. Even if you are applying for a buy to let mortgage with a partner, and the both of you own two properties, you would be also pushed into this bracket.
Most full time or professional landlords (a professional land lord is someone who owns four or more mortgaged properties)– who make their income primarily from renting out the property, they will fall under this bracket, and will have to apply for portfolio landlord mortgages instead of standard buy to let mortgage.
Portfolio landlord mortgage work a little different than standard. With portfolio landlord mortgage., it isn’t just a about the assessment an individual property; the mortgage lender will look at the borrowing against all of your assets in to make a decision.
This is because the UK’s Prudential Regulation Authority (PRA) have introduced new guidelines in the last few years, instructing that lenders should take a more intricate approach to portfolio mortgage lending. Lenders are now required to cautiously examine factors like lending across the portfolio, risk, and the property investor’s track record.
This therefore means that when arranging Buy to let mortgages for a portfolio landlord it can be quite tricky and challenging, making the experience of a broker like Azembel’s approach invaluable.
One obstacle that portfolio landlords often encounter is that many lenders will inflict caps on the overall borrowing a landlord is able to have across their whole portfolio.
Portfolio landlord finance is a not an easy process and at the best of times it can be a long-winded process– and since securing the most competitive interest rate and best term scan make the difference with a financially successful property portfolio and one that’s struggling, it’s good to seek specialist advice.
Azembel can additionally have value to landlords seeking the best portfolio landlord mortgage rates. We have contacts across the lending market with direct access and can use our many years’ experience to assist your portfolio and find the most suitable lender for your case.