New portfolio landlord
regulations don’t have to
be a mortgage headache

Portfolio landlords have more stringent checks performed on them by mortgage lenders. Their overall portfolio has to meet certain background checks in terms of its total debt to rental income ratio and its loan to value ratio. This can mean the time it takes for a mortgage application to be approved is longer than it would be for a smaller scale landlord.
Given this is likely to be your business and you have to make quick decisions, it is vital you work with a team of professionals who can ensure your application is handled as speedily and efficiently as possible.

Furthermore, you may also have a variety of different property types (houses of multiple occupation, student lets and multi-unit freehold properties) held in numerous structures (personal name, limited company, special purpose vehicle) which all have to be assessed by an underwriter. You do not want to run the risk of costly delays by applying to a mortgage lender who is unable to lend to you based on the complexity of your portfolio.
 

At Taylor James Financial Services, our brokers work with a large number of experienced portfolio landlords. Before making any recommendation, we carry out a full portfolio review to ensure the mortgage application is sent to the most suitable lender.

We also have a wealth of experience in arranging finance for HMOs and Multi-Unit blocks. This allows us to accurately and quickly ascertain which lender is most suitable to a specific class and type of property and ownership structure.

We take the time to understand the nature of your business model and can help to arrange additional sources of funding where required. For example, bridging loans, development funding and developer exit finance.  

We have lenders available to us that will offer mortgages across an entire portfolio.
 

1. You are simplifying your finances. Consolidating all your mortgage loans with one lender means one monthly payment and one statement.
2. You can use the equity in the portfolio to add more assets and gain a forward funding agreement so you can buy properties quickly as a “cash buyer.” This is especially useful if your business model involves buying properties at auction, or those which need extensive works before they can be let.
3. You are increasing your borrowing power. Under-performing properties can make it difficult for borrowers when requesting further finance. However, in a portfolio, well-performing properties can compensate for those with low rental yields. Lenders will assess income and expenditure as a whole rather than on individual properties.
4. Usually, there is no cap on the number of assets that can be included in the portfolio.

To advise on the most suitable options and lenders for you, we undertake a rigorous review of your portfolio at the outset. Whilst this may initially appear to be time-consuming, we believe it is time well spent. We would rather take a more in-depth approach to ensure we get it right the first time, rather than have to resubmit numerous applications to different lenders in the hope that, eventually, one will agree to lend.
 

1. A business plan document that encompasses the reason for the portfolio (i.e., income generation/pension provision, plans for your properties, strategies to cover rental gaps and professional services used to manage the portfolio).
2. Details of portfolio assets, such as the type of properties, start and end dates of current tenancies and rental incomes generated.
3. Tenancy agreements for all properties.
4. Up-to-date valuations.

• The rules and regulations covering loans to portfolio landlords are complex and require expert knowledge to navigate them successfully.
• We have access to the entire market, including broker-only deals. Therefore, we can find the right portfolio mortgage for your specific needs. Many specialist buy to let lenders will not deal with the public on a direct to consumer basis, and therefore you must submit via a broker.
• We forge relationships with lenders and underwriters, the key decision-makers.
• Our approach is to make the entire mortgage application process much less stressful and time-consuming. Our many positive reviews from satisfied customers are a testament to that.

• We will consider all your circumstances to help you understand the best way to take on and manage multiple buy to let mortgages.
• We can work alongside your other professional advisers (tax planners, accountants, solicitors, etc.) to ensure the advice we give you for your mortgages fits in with your wider and long-term strategies.
• We will be your trusted adviser for all your financial planning needs, including advising on your pensions (such as self-invested personal pensions which can be used to buy commercial property), investments and the necessary protection policies.  We also arrange landlords insurance and rent protection policies, both for individual properties and also over entire portfolios.