Portfolio Landlord Mortgage
Portfolio landlords are defined as those who have four or more mortgaged Buy-to-Let properties. In recent years the underwriting of a mortgage for a ‘portfolio landlord’ with multiple properties has changed and ‘stress testing’ has been introduced. Lenders use these checks to ensure investors are in a stable financial position. Of course different lenders interpret these rules in different ways, but they will all consider your entire portfolio.
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How many Buy to Let properties can I have and am I classed as a portfolio landlord?
The simple answer is that there is no limit. However, all lenders will take a different view on exposure and may impose a limit on the number of properties, or total amount of finance you can have with them. In addition, some consider other BTL mortgages “in the background” with other lenders.
Portfolio mortgages for landlords
As laws around tax and stamp duty change, landlords are increasingly looking for new ways to increase their investment income. This is especially true with the amount of tax relief landlords can claim, as it’s no longer possible to offset interest as an expense like in previous years.
Similarly, corporation tax increased to 25% in April 2023. This has resulted in more landlords placing their portfolios under limited companies, or moving to a single portfolio mortgage.
For landlords with multiple properties, a portfolio mortgage could be something to consider as placing a portfolio under one mortgage can be beneficial.
Is the criteria for a portfolio landlord mortgage different?
Each lender operates their own criteria when assessing a landlord and whether they are eligible for specific mortgage products.
Which lenders offer finance to portfolio landlords?
You are likely to find that the high street banks will not get involved when it comes to property portfolio lending. Thankfully we are not tied to any lending panel and as such have access to 100s of lenders offering 1000s of products, many of which are only available through an intermediary. This gives us access to the majority of rates applicable to portfolio property investors and means you can compare from a large pool of options.
Lender products are updated regularly so please contact us for the latest offers available.
Can a Limited Company Take Out a Mortgage?
Yes, however the company must be set-up as one of the following:
- Special Payment Vehicle (SPV) – a company created for a specific purpose, in this instance for the purchase and management of Buy to Let properties.
- Trading Company – typically an existing company looking to invest in a Buy to Let property to add to a current portfolio of assets.
If you’re thinking of incorporating an existing Buy to Let property into a new limited company, we recommend you speak to an experienced tax adviser before making any decisions. Our partners at GetGround are offering all Vincent Burch clients and enquiries a free consultation to discuss the pros and cons of ltd company ownership – find out more here.
More Mortgage Choice
Our independent team of advisers at Vincent Burch Mortgage Services have access to the best limited company mortgage rates on the market, from a range of specialist lenders. We have experience in finding buy to let limited company mortgages for SPV and trading companies as well as private individuals seeking to transfer an existing rental property into a limited company set-up.
