Multi-property buy to let mortgages
One very important thing to know is that if you have four or more properties, mortgage lenders consider you a ‘portfolio landlord’ and you will be subject to specific ‘portfolio lending’ criteria
This usually means:
The average loan to value (LTV) across the whole portfolio cannot exceed 75%
The rent cover – that’s the minimum amount by which the rental income must exceed the mortgage payments – may be higher than for a single property
The loan may be ‘stress-tested’ at a higher interest rate
There is likely to be a maximum loan size across the portfolio
There will be a limit on the number of properties you can own as an individual
The lender may limit the number of properties you can own in the same postcode
The criteria will vary between lenders, so it’s well worth consulting an experienced buy to let mortgage broker, ideally one that specialises in arranging loans for portfolio landlords.
They can make sure you understand exactly what measures will apply to you and help secure the most appropriate product.
Yes
No
All lenders have limits on the number of buy to let properties you can own with mortgages and/or the total amount of mortgage borrowing you can have with them.
This can vary significantly from one lender to another, for example:
Virgin Money permit a maximum of five mortgaged properties within their group, with maximum total borrowing of £3 million, and a maximum of ten mortgaged properties across all lenders. There is also a limit of five properties within the same postcode.
Monmouthshire Building Society will accept up to 20 properties mortgaged with themselves, but total borrowing must not exceed £3 million
The Mortgage Works doesn’t limit the number of properties, but it does limit total borrowing to £5 million
If you want to buy more properties or borrow more than is permitted by an individual lender, you should consult a financial adviser or wealth manager who can advise you on the best legal way to proceed.
