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Multiple BTL purchases


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Hi, 

(enquiring for my friend). 
 

I have recently inherited some monies and would like to purchase 2/3 BTL properties. What is the best way to go about this? Can I purchase 3 at the same time? Would I submit the mortgage application at the same time? I am a first time landlord but not a first time buyer. 
 

thank you, Abby 

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Hi Abby

Your friend can purchase more than 1 at the same time. In fact, if they buy it from the same vendor, they can benefit from a linked transaction and potentially minimise their stamp duty impact - HMRC link

Might be best for your friend to discuss options with a mortgage broker if they're looking to borrow funds to help with the purchase, and an accountant to ensure it's being purchased in the most tax-effective manner. 

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15 hours ago, abbyk said:

Hi, 

(enquiring for my friend). 
 

I have recently inherited some monies and would like to purchase 2/3 BTL properties. What is the best way to go about this? Can I purchase 3 at the same time? Would I submit the mortgage application at the same time? I am a first time landlord but not a first time buyer. 
 

thank you, Abby 

I wouldn't buy 3 at once, unless you hate yourself and your heart. I couldn't think of anything more stressful

I also think it's a bad idea to apply for 3 mortgages at once. There would be a number of hard credit enquiries on your credit record, and it will look dodgy

Go through the process once, learn what you're doing. Then when you do your 2nd deal, you'll do an even better deal

 

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Property Investor and Developer
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On 8/14/2021 at 3:11 PM, EvolutionBlogger said:

I also think it's a bad idea to apply for 3 mortgages at once. There would be a number of hard credit enquiries on your credit record, and it will look dodgy

I dont think its a big deal to apply for 3 at once. If they are roughly the same value and LTV you will likely end up with the same lender across three and so really its no more work than one application as documents and queries can be duplicated across the three applications.

The idea that hard fotprints affect your credit rating is a bit of a myth. Its perpetuated by overzelous brokers wanting to scare their clients into not shopping about once they have done a DIP for them. Granted, "Excessive" searches can start to have a detrimental effect but a) 3x with the same lender is only one footprint in many cases. b) it doesent matter if its a pass at the point of application, you'r already in the door. c) Excessive would probably be more than 3 in a 30 day period.

Excessive credit searches are only something im concerned about for clients with known credit issues, we wouldnt want to risk anything that might reduce that score further, but generally its not an issue.

Some lenders like TMW are known to get nervous about fast increases to a portfolio , you might find they request a lower LTV, such as 65% rather than 75%, but you would discover that at DIP stage anyway. Most lenders dont seem to concerned though, its rarely an issue. I have 2 active applications where we are doing 3 remortgages with BM solutions, and another where we are doing 2 with the same lender.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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