Are you a Portfolio Landlord? Well, if you have four or more mortgaged buy to let properties then the answer is yes!

Back in September 2017 , the Prudential Regulation Authority advised lenders that new underwriting rules should be applied to portfolio landlords. These new rules mean that lenders must also assess and stress all the properties in the landlords portfolio to ensure that the landlord’s business is viable and not under pressure with regard to gearing and rental coverage.

So, if you are a portfolio landlord applying for mortgage finance then you’ll need to be organised. Mortgage applications do not necessarily have to take longer if you are a portfolio landlord and with the help of a specialist broker, applications can be put together quite quickly – as long as your paperwork is in order. Here’ s a quick checklist of the documents required by the majority of lenders:

• Last 2 years’ tax calculations and overviews. These can be downloaded from HMRC account or you can request them to be posted. If your accountant does your tax returns then they will be able to supply what you need.
• Evidence of any other income – e.g. last 2 years P60 and last 3m pay-slips if employed.
• Last 6 months personal and business bank statements. If rent is paid into a separate account then you will need to provide those statements as well.
• Full details of your property portfolio. You will be expected to have a spreadsheet showing up to date details of your portfolio including full property addresses, current value, rental income and current mortgage details.
• Business Plan. Not as scary as it sounds and your broker can help with this. In essence the lender will want to understand your investment strategy and the type of properties and tenant profile targeted.
• Cash flow Forecast.  Again, quite straight forward and not required by all lenders. What you will need to demonstrate is that you manage your business properly and can cater for voids and property maintenance etc.

Having the above prepared at application stage makes such a difference!