What is a Portfolio Landlord?
A Portfolio landlord is defined as someone with 4 or more Buy To Let properties, irrespective of which lender(s) the properties are mortgaged with. It is the 4th and further properties that will be assessed using our updated criteria.
Why are they assessed differently?
As a lender we recognise that, in an economic downturn, the impact on someone with multiple properties could be greater than someone with a single property. Hence we assess across the full portfolio rather than the property the mortgage is being applied for. Although at Furness we have had Portfolio Landlord criteria in place for several years, in Sept 2017 the Prudential Regulation Authority introduced industry wide guidelines for lenders and as a result we have made further updates to our criteria.
Are the products and pricing different?
Portfolio Landlords can apply for any of our standard Buy To Let products, which are available up to 75% LTV. There is a maximum of 1 Holiday let property (with a Furness Building Society Mortgage) in each portfolio.
Do I have to submit additional forms and information?
As well as providing scanned copies of documents such as tenancy agreements, all applicants will also need to complete an Assets and Liabilities statement, which you can find here
What are your Portfolio landlord specific criteria?
These can be seen in the table below.
|Maximum LTV per property||75% LTV|
|Maximum LTV across a portfolio||65% LTV|
|Minimum rental coverage across a portfolio||140% of mortgage interest at pay rate|
|BTL experience required||2 years experience as a BTL landlord|
|Minimum income||£40,000 (excluding rental income)|
|Maximum BTL lending with the Society||£750,000 and/or 5 mortgages|
|Maximum overall customer BTL borrowing||£2m mortgages/10 mortgaged properties.|
Normal disclosure of personal financial circumstances, and completion of an Assets & Liabilities Statement. In some cases we may also request a business plan and cashflow statement to be provided.
One of our brokers recently called us about his client Miss Peters. She’s a regular client of his and had asked him to arrange a remortgage of one of her existing BTL properties. The broker was struggling to find a lender as it had been bought before ICR requirements were at today’s levels, as well as the fact that it is a relatively expensive property in an area where rental values are low.Find out more