Portfolio Landlord Mortgages

In resent years the Buy to Let mortgage lenders have brought in restrictions and additional checks for portfolio landlords.

Most lenders class a portfolio landlord as someone with four or more mortgaged buy to let properties. This will included, consent to let properties, ones owned through a ltd company and all buy to let mortgaged properties owned jointly or solely by the applicants.

It is important to remember that if there are two applicants, lenders will combine the no of properties for both applicants. So, if the first applicant owns two mortgaged BTL, and the second applicant solely owns three properties, they would own a combines 5 properties. This would mean both applicants would be classed as portfolio landlords.

Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority

Portfolio Landlord Extra Stress Test

All buy to let mortgages will have a basic stress test that is applied to the property being purchased or remortgages. All portfolio landlords are required to have an additional test.

The lender will also assess the whole of the existing portfolio to male sure the overall aggregate LTV and ICR is sustainable. This additional stress test is based on the entire portfolio, including the new property. One positive is that any existing BTL properties that don’t have a mortgage are included in this calculation.

The stress test for the portfolio as with the standard stress test will differ from lender to lender.

The rental calculations below is a guide as to what could be apples across your portfolio:

Portfolio Size Brick & Block Stress Rate Interest Cover Ratio (ICR)
Up to 10 mortgaged BTL properties at completion 75% 4.5% 145%

Correct as of the 01/06/2024

Do you want Expert BTL Mortgage Advice?

If you would like advice on buy-to-let portfolio landlord mortgages and remortgage schemes, compare the fixed-rate options available, then complete our mortgage inquiry form. We will contact you to discuss your buy-to-let mortgage requirements in more detail.

We typically do not charge a fee for mortgage advice, however this is dependent on your personal circumstances and loan amount. Our typical fee would be £399.

Mortgage Calculators/Tables

Not all lenders offer portfolio landlord mortgages. Are best buys and calculators do not allow you to filter for these types of mortgage. Please consult a qualified advisor before undertaking any borrowing/these calculations are for illustration purposes only and may not reflect the true cost of repayment.

Your home may be repossessed if you do not keep up repayments on your mortgage