With all the challenges faced by buy to let landlords over the last year, many borrowers feel put off at the prospect of expanding their buy to let portfolio—despite the fact low interest rates make this the ideal time to secure a mortgage.
Earlier this year, the PRA announced how all lenders will now have to change the way in which they underwrite buy to let mortgages for landlords with four or more mortgaged properties. These landlords are now subject to tighter affordability checks if they wish to refinance and release equity from one or more of these properties, as well as an assessment of other mortgages taken out across their entire property portfolio.
Furthermore, new specialist underwriting requirements mean that portfolio landlords now need to provide more information when attempting to expand or refinance their buy to let portfolios. This may include an evaluation of the landlord’s portfolio and property experience, cash flow statements for the properties in question, and the landlord’s assets and liabilities including future tax implications and outstanding mortgages.
So how can portfolio landlords expand?
However, if you’re looking to expand your buy to let portfolio, you shouldn’t be put off altogether—you simply need to find the right lender. This will now require a lot more consideration to ensure that you are getting the best mortgage product for your situation. If you are a landlord with current, or future, plans to expand your portfolio, you will likely therefore benefit from seeking professional advice.
Our expert mortgage brokers at Enness are on hand to help you navigate any variation in the market, find the right lender for your circumstances, and advise you on how best to overcome the new regulations imposed by the PRA. Even if you have been refused elsewhere, we have access to specialist lenders and challenger banks who may be interested in working with you.
For more information on this topic, watch our exclusive video below, as Enness Mortgages broker Radhika Madar explains how using a high net worth mortgage brokerage can help you to expand your buy to let portfolio.