Sign Up


By signing up I agree to Property Tribes Terms and Conditions

Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google


By signing up, I agree to Property Tribes Terms and Conditions

Already a PT member? Log In

Log In


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.

Already a PT member? Log In

Don't have an account? Sign Up

  • Entrepreneurs

    Growing a property portfolio - resources

    The PRA is beginning to bite and the second phase, affecting portfolio landlords, will become embedded this Autumn.

    It is therefore going to be harder to grow a portfolio and scale up as quickly as landlords were able to do over the past 10 years.

    Stephen Johnson, M.D. of Shawbrook Bank, gives an overview of the environment and issues facing landlords wishing to grow their portfolios:

    I thought it would be helpful to curate all our discussions on this topic.

    How to grow a property portfolio 

    How to go big in property? 

    Property journey & scaling up via mixed use 

    Property investment course for scaling up 

    Nicole Bremner on scaling up in 2017 

    How to move from residential to commercial? 

    Advice on growing portfolio 

    Tips for recycling your cash to build a portfolio more quickly 

    Large equity - how can I get it out for BTL? 

    The power of owning a property with no mortgage on it

    Remember that the new deal stacking calculation used by most lenders is now:

    Monthly rent x 12 divided by 5.5% divided by 145%.

    This could significantly reduce the amount of equity you can re-cycle via BTL mortgaging.

    For refurbs and development, you really need cash and then move to term finance or sell, hopefully re-cycling most of your cash.

    SEE ALSO  -          Understanding the impact of PRA on landlords

    UP NEXT -              Additional borrowing - Got less than I hoped!

    DON'T MISS -         How to find property value through planning

    NOW WATCH:  (Video recorded January 2017):


    so using the above calculation £450 a month is around £62000 Mortgage

    have I got that right ?


    Learn Change and Adapt ?????

    No - £450 rent per month would support a borrowing of approx. £67,700 by my calculations.

    See - Ready-made deal stacking calculations


    That's even better

    well I don't have any probs with PRA

    Just got to cope with S24 now

    But I can see this causing such issues for others and there plans for their lives.


    Learn Change and Adapt ?????

    The PRA will have the same effects as MMR.

    It is just the new reality.

    It will mean the same as homebuyers that LL will now require a lot more cash to put down as a deposit.

    So instead of buying two BTL properties only one will be affordable.

    The PRA is effectively doing what MMR has done.

    Forcing buyers to inject far more cash into the deal or 'skin in the game', as the slang often used!

    Essentially lenders are requiring far more headroom to ensure that they will he guaranteed to recover the mortgage debt from any forced sale of the mortgaged property.

    You can see it from their position.

    I would require the same.

    It is certainly not certain that property values won't reduce.

    There are so many clouds on the horizon.

    Lenders will be requiring more deposit.

    They have every right to desire this.

    It is their business choice.