As a landlord, securing a buy-to-let mortgage can be a time consuming process when you’re building your property portfolio.
Lenders’ criteria for buy-to-let mortgages can vary significantly, as different lenders interpret the rules in different ways. If you’re a portfolio landlord, seeking professional advice is crucial. As expert advisers, Sarah Grace Mortgages can review your buy-to-let portfolio and help you find the most suitable options for your specific circumstances.
What is a Portfolio Landlord?
A portfolio landlord is regarded as someone who has four or more buy to let mortgaged properties. This definition applies to both sole and joint applications.
You can get a second mortgage for a buy to let property, or even a third and not be considered a portfolio landlord. But if you own four or more buy to let properties with a mortgage, then your application will be subject to the new portfolio mortgage underwriting checks.
Portfolio Landlord Criteria
As part of these stress checks, lenders will need to make sure that you are in a stable financial position. Different lenders interpret the rules in different ways, but they will all look at your entire buy to let portfolio as a first port of call.
Some of the other markers they’re likely to take into consideration include:
Limited Company Mortgages
Rather than owning buy-to-let properties in your personal name, you may choose to hold them through a limited company. This is typically done via a special purpose vehicle (SPV), a company set up solely for the purpose of owning investment properties. Some lenders also accept applications from trading limited companies.
We have extensive experience in arranging mortgages for clients with complex company structures, including scenarios where a trading business provides an inter-company loan to an SPV for the deposit.
As property investors, securing the right mortgage is key to achieving your goals. If you’re interested in learning more about how we can help you secure a mortgage, contact Sarah Grace Mortgages Ltd today for expert, reliable advice.
How Can Sarah Grace Mortgages Ltd Help?
Best Rates
Achieve the best market-leading rate available for your circumstances.
Regular Updates
Provide regular updates on the prompt processing of your application.
Hassle-Free
Liaise with estate agents* and solicitors* to make your property buying experience is as hassle-free as possible.
Experienced
A team of qualified and highly respected mortgage specialists with more than 30 years’ experience.
Knowledge
Expert inside knowledge of the market.
Online
We don’t need to see you face to face; we can do everything by phone, Teams, Zoom and email.
*The FCA does not regulate estate agents and solicitors.
