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CorecoOverview

What is a Buy to Let Portfolio Mortgage?


Coreco are proud to be one of the most experienced Buy-to-let mortgage brokers in the London mortgage market – some of our advisors were around when the modern residential Buy-to-Let mortgages were initially launched.

This product offers one umbrella mortgage for more than one Buy-to-Let property, rather than having a mortgage on each property.

This removes the need for multiple mortgages with different lenders. One lender will finance the portfolio loan with one monthly payment and one statement. This makes things much easier to manage as a landlord.

 

What makes it different from a normal buy to let mortgage?

A Buy-to-Let portfolio mortgage is a product designed for landlords with at least four investment properties. Each lender will have their own lending policy on the number of properties or the total value within a single portfolio mortgage.

Our brokers are familiar with portfolio lenders’ criteria and are happy to advise and find a suitable lending option based on your portfolio requirements. Lenders will view and assess each property portfolio based on its own leverage, structuring and tenancy types.

We have advised on portfolios in excess of 50 properties, with complicated group/subsidiary structuring.

 

Portfolio Stress Testing (ICR Requirements)

Most experienced landlords can get a Buy-to-Let portfolio mortgage however, in 2017 new mortgage underwriting regulations from the Prudential Regulatory Authority (PRA) came into effect which impacted the criteria. With the new regulations in effect, lenders must treat you (for underwriting purposes) as a portfolio landlord if you have four or more mortgaged properties.

Lenders will apply slightly higher ICR (Interest Coverage Ratio) to your current lending and new proposed lending.

Portfolio lending can have a degree of affordability applied to the underwriting to mitigate any rental void periods, that there is sufficient income/s to service the proposed lending.

Typical requirements:

  • Property income – Tax documents (Accounts)
  • Any other income – Personal Tax Documents (Tax Year Overviews & Tax Calculations)
  • The amount and source of Deposit
  • Equity – via valuation reports
  • Your credit history

When it comes to buy to let and portfolio mortgages there are other considerations that the lender will take into account. Different lenders will conduct different checks but things to be prepared for include:

  • A stress test of your portfolio
  • Assets and liabilities evidence, including tax liability
  • Evidencing details of all mortgages on your buy-to-let properties

 

Properties considered for portfolio mortgages

This product is suitable for several types of investment properties including;

  • Residential houses and flats
  • Residential flats above commercial premises, for example above a shop or restaurant etc
  • Houses in multiple occupation (HMOs)
  • Mixed properties of residential and commercial units
  • A block of flats, including Multi-Unit Freehold and broken Freehold Blocks
  • Student accommodation

 

We’re here to help

Coreco Commercial has over 20+ years of experience in securing specialist finance for our clients which means we can get some of the best rates on the market. We can arrange Buy-to-Let and Commercial lending for a wide range kind of clients — from first-time landlords starting out, to more experienced landlords holding in excess of one hundred properties. Take a look at our experience in the portfolio buy to let market.

Curious to see our advisers in action? Read our case study to see how we were able to secure a Buy-to-Let portfolio mortgage for a client looking to expand his investment properties by purchasing a portfolio of high-yielding HMO properties.

Whether the properties are old, new, in need of refurbishment, ex-local authority, or bought off-plan, Coreco has buy to let mortgage products available to suit all circumstances. Contact our expert mortgage brokers on 020 7220 5100 or visit our online contact form.

CorecoFaqs

FAQs

  • Who can get a Buy-to-Let portfolio mortgage?

    Most experienced landlords can get a Buy-to-Let portfolio mortgage however, in 2017 new mortgage underwriting regulations from the Prudential Regulatory Authority (PRA) came into effect which impacted the criteria. Previously, portfolio landlords were classified as full-time landlords if they owned multiple Buy-to-Let properties, student accommodation or houses in multiple occupancy (HMO).

    However, with the new regulations now in effect, lenders must treat you as a portfolio landlord if you have four or more mortgaged properties. In addition, the portfolio must be registered as a limited company and treated as a business.

    Good to know

    When looking for a Buy-to-Let portfolio mortgage, you’ll likely undergo thorough due diligence checks from the lender who’ll want to ensure you are financially stable. Naturally, criteria will vary from one lender to the next. Different lenders will conduct different checks but things to be prepared for include:

    • Evidencing details of all mortgages on your buy-to-let properties
    • Providing previous and forecast cash flows from your portfolio
    • All income evidence – properties and any other sources
    • A stress test of your portfolio
    • Assets and liabilities evidence, including tax liability
    • Demonstrable experience as a landlord

CorecoImportant Information

The important bit


Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

A percentage of the mortgage amount may be charged depending on individual circumstances. A typical fee is 1%.

Coreco Commercial is a trading style of Coreco Specialist Finance. Coreco Specialist Finance. Registered Office: 117-119 Houndsditch, London EC3A 7BT. Registered in England Number: 06851546

Coreco Specialist Finance Limited is authorised and regulated by the Financial Conduct Authority.

Some types of finance offered by Coreco Commercial are not regulated. Please contact us for more details.

Coreco Commercial advisers are experienced mortgage advisers but we are not tax advisers. Please seek independent tax advice if required before you decide to proceed.

CorecoDNA

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Personal

We know that all our clients are unique, and therefore the finance you require needs a different approach. We pride ourselves on providing a client focussed journey built around your needs and goals.

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Professional

Our team always expresses their professionalism through their authenticity, high level of work ethic, and can-do attitude. We always find the best way for our clients to succeed.

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Progressive

Our progressive and forward-thinking outlook allows us to guarantee an exceptional level of innovative advice and service, ensuring an effortless, client-centric journey in the ever-changing financial world.

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