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Implications of tipping into being a portfolio landlord


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Hi all,

Although I only currently have 1 investment property I am at the stage where I can add 2-3 more "lower value" properties or 1 more in my local area (South East). My limited understanding is once you go from 3 to 4 properties you then become a portfolio landlord, thus require to have one pooled mortgage for the whole portfolio.

My understanding is this is more expensive? is this the case, and if so, is it roughly +2% to what you can get on individual BTL properties?

My second question is how do you transition to a pooled mortgage? For example I will have 3 individual mortgages and then I will buy a 4th so how do you transition? Surely you are not expected to remortgage early on the other 3?

Anything else I need to be aware of in terms of costs and other cons (or pros!).

Any advice would be appreciated.

James

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Hi James.

There are two definitions of portfolio and you are getting them mixed up. Once you hit four mortgaged BTL properties the lenders class you as a Portfolio Landlord. All it means is the lender will pay more attention to the whole portfolio looking at the overall loan to value and rental cover.

Occasionally you may be asked for additional information which includes a basic business plan, asset and liability profile, schedule of properties and cash flow. All the lenders have their own templates for this and for most just need a property schedule.

A portfolio mortgage is one loan across multiple properties with one lender

You need to make sure the broker dealing with you understands what to do, as a lot don't .Being a Portfolio landlord is straightforward and nothing to worry about.

 

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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Simon,

appreciate your comments, all makes sense. So in essence a portfolio landlord will still have access to the usual BTL lending but just have to jump through some more admin hoops!

thanks again

James

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22 hours ago, jamesbo said:

Simon,

appreciate your comments, all makes sense. So in essence a portfolio landlord will still have access to the usual BTL lending but just have to jump through some more admin hoops!

thanks again

James

Correct and a tiny jump.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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On 3/4/2021 at 3:22 PM, jamesbo said:

Simon,

appreciate your comments, all makes sense. So in essence a portfolio landlord will still have access to the usual BTL lending but just have to jump through some more admin hoops!

thanks again

James

Hi James. 

 

I'm a portfolio landlord. 

I don't jump through any hoops. Simon is my broker and does all the jumping. 

I didn't notice any difference at all when I became a portfolio landlord. 

I wouldn't want to be trying to deal with the lender myself. 

Thanks Craig 

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