Portfolio Landlord Mortgages

Over the last few years, the Regulator introduced new guidelines for lenders aimed at reducing the risk of landlords overstretching themselves on buy to let mortgages.

Generally speaking, a portfolio landlord, is a landlord that has 4 or more mortgaged buy to let residential properties. This includes any new mortgage to be arranged.

Anyone designated as a portfolio landlord would typically have to meet more stringent lending criteria and need to demonstrate the robustness of their current buy to let portfolio through portfolio loan to value ratios and portfolio rental income cover stress tests etc.

At Rockhopper we work with a number of lenders who are happy to consider Portfolio Landlords. Some of the lenders we work with are able to ignore the background buy to let portfolio as long as the rental income currently received covers the mortgage payments. Additionally, some lenders are able to offer low rental income stress tests for the new mortgage if, for example, a 5 year fixed rate is being requested.