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So I'm looking into purchasing my third and possibly last BTL (but never say never!).My contact at the bank branch has already passed me through to their regular BTL mortgage guy, but the fact these are HMO's, the contact has suggested I should also speak to his Business BTL manager.
So for those of you with more than 3 BTLs, what is different when you go over the magically 3 number of BTLs?Do you go from regular retail BTL investor to a portfolio BTL investor or what do you become?
Can you explain as I've not really seen it talked about on PT?
Hi Adam,When you go over 3 properties you are deemed a "portfolio landlord".This has been discussed on Property Tribes:Understanding the impact of PRA on landlords We also recorded a video on this topic:
You will be subjected to a more intense and specialised underwriting process, where the lender will assess your entire portfolio and also your tax position.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thanks Vanessa, more learning to be done but I'm up for the challenge!
As Vanessa says, you are generally looking at portfolio lending from your 4th purchase. I'm happy to discuss the specifics of your personal circumstances with you if that could help? Please call on 07581794922
Property Tribes Financial services
You can contact me via Direct Message, or 07581 794922 or call the team on 01206 654444 for personalised quote and advice
Anyone moving towards more commercial type lending should check out and be very wary of "LTV Covenants".
The more properties brought on leverage the bigger the risk. B of E has already warned financial institutions about this. So expect tighter lending requirements the more properties you have on mortgages.What many do not realise, a problem with a mortgage on one will reflect on the others owned and when it hits the fan the whole lot get taken out.
Spread the risk, do not have all your borrowing with one bank. See a decent broker
Quick question out of interest.
Is it 3 total properties that you're deemed to be a portfolio landlord or 3 btl properties.
For instance I have a residential and 2 btl properties so was wondering if I would be deemed a portfolio landlord or not yet.
Just the BTL properties Dimitri
Had an interesting chat with an RBS group business BTL manager and he said the maximum LTV for portfolio LL's would be no more than 50%, which rules out this deal as it is for an HMO and I've not got a couple of hundred grand sitting around! Looks like I'd still be at the mercy of a surveyor just valuing it as a family home which is crazy. "They have to value it as a family home rental as a worst case scenario" was what I was told. Makes a mockery of being a portfolio LL as I'll never be renting it as a family rental, and neither would RBS.
But then the retail BTL manager in the same group I'm speaking to still feels a 75% LTV is do-able. Strange!
Adam, there are many lenders available with much higher LTV's. Don't limit yourself to just one lender.
Please call me to discuss better options. Best number is 07751042485.
BTL's, residential mortgages, bridging, life cover and estate planning
For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.
Telephone: 07751042485 01206 654444