Where the total number of properties (including limited company buy-to-lets), including the property to be mortgaged is four or more, the applicant is considered to be a portfolio landlord.

Properties held in the names of any of the borrowers, whether solely or jointly, should be included in the portfolio.


Key criteria

The following additional criteria will be applied to the overall buy-to-let portfolio, including unencumbered properties and properties to be managed:

Maximum LTV for the portfolio

The maximum LTV for the portfolio is 75% LTV.


Maximum buy-to-let portfolio size

The maximum buy-to-let portfolio size is 15 buy-to-let properties.


The overall portfolio must be evidenced as self-supporting by the rental income across the whole portfolio (including unencumbered properties and the property to be mortgaged) to meet the following income coverage ratio calculation:

  • Maximum interest coverage ratio of 160%
  • Assumed stressed interest rate of 4.25%.

Process

A fully completed assets and liabilities form must be provided which includes details of their background portfolio and business plan. The business plan must show that the landlord:

  • has at least three years experience in managing investment properties
  • has a portfolio of which no more than 25% is made up of HMO properties
  • has considered the ongoing and future management of the portfolio including professional and management fees.