Mortgages for Professional Landlords.
Mortgages for professional landlords used to mean lending to clients that derive their main source of income from property. More recently a professional landlord has been defined a person owning 4 or more properties either in a personal name or via a limited company.
What are the implications of being a professional landlord?
One of the main implications of being a professional landlord is that lenders now require considerably more paperwork on your assets and liabilities. Typically lenders will require a business plan, assets and liabilities statement and a cash flow forecast for your property portfolio. All of which is rather time consuming but important to ensuring the lending is agreed.
Lenders will assess your property portfolio, some lenders require the overall loan to value to fall below a certain loan to value. Other lenders need the rent to cover the mortgage payments by certain amounts. At the other end pf the scale there are a few lenders that don’t need any of the above at all.
The increased scrutiny and paperwork required means that securing a mortgage as a professional landlord needs to be handled by a buy to let property finance broker familiar with securing mortgages for professional landlords.
As an established Independent buy to let mortgage broker, Fox Davidson have access to the whole of the Buy to let mortgage market. This is an attractive proposition for professional landlords as we can secure mortgages for professional landlords wishing to finance for many scenarios including:
- Portfolio’s ranging from several properties and with no maximum limit
- Auction Property
- Student Buy to Let’s
- Multiple flats under one freehold
- Re-mortgages within 6 months
- Mortgages for clients showing little or no taxable income
- Mortgages for property developers
Mortgages for Professional Landlords need to take account of each property including the type of property, the rental yield, type of tenant. We take the time to understand your current situation and will work with you to help you grow your property portfolio. We run a professional portfolio service for professional landlords, you can find out more by clicking portfolio finance.
Our team of buy to let mortgage brokers have many years’ experience in putting together finance packages secured across some of the UK’s largest property portfolios and we have secured terms not advertised on the high street.
Mortgages for Professional Landlords | Lending Terms
Although each portfolio is different we can summarise the typical terms that we can secure for a professional landlord with a portfolio of 4 or more properties:
- A maximum of 80% loan to value (85% is possible but rates are unattractive)
- Market leading rates due to our access to the whole of the market
- Lenders that don’t require mountains of paperwork
- Low rent to loan calculations possible from non PRA regulated lenders
- Lending for refurbishment and development projects
Second Charge Mortgages for Professional Landlords
As a professional landlord that has held their portfolio for many years it is likely you will have finance on very low base rate trackers. In this instance we are able to secure finance by way of a second charge which will ensure you are able to keep your existing low rates of finance in place.
Fox Davidson provide high quality advice on mortgages for professional landlords. Contact a broker to discuss your portfolio finance.