Portfolio Landlord Buy to Let Criteria | Accord Mortgages
Lending criteria
Portfolio landlord
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Portfolio landlord definition
Definition of a Portfolio landlord
- Portfolio Landlord will be defined as those having 4 or more mortgaged BTL properties - either individually, jointly or through a special purpose vehicle/limited company.
- The definition is applicable at application level not applicant level. Therefore for 2 landlords applying together, the total number of their individual and joint mortgaged properties will be taken into account.
- We’ll include other applications currently ‘In-flight’ with Accord and other lenders to determine the total number of mortgaged BTL properties.
Examples:
| Scenario | Portfolio landlord? | |
|---|---|---|
| 1 | App 1 and 2 have 3 BTL properties in joint names and App 1 has another in sole name | Yes |
| 2 | App 1 and 2 have 2 BTL properties in joint names | No |
| 3 | App 1 and 2 have 4 BTL mortgages held in joint names and are remortgaging one of these to Accord | Yes |
| 4 | App 1 and 2 have 2 BTL mortgages in joint names. They’re applying to us to purchase another property and they have an ‘in-flight’ application with another lender | Yes |
| 5 | App 1 and 2 have 5 BTL properties in joint names, 2 are unencumbered. Applicants are looking to raise funds with Accord on one of the unencumbered properties. | Yes |
| 6 | App 1 and 2 have 3 BTL properties in joint names which are unencumbered. They’re applying to us to purchase another property. | No |
| 7 | App 1 has 3 BTL properties in sole name and 1 BTL property in a special purpose vehicle/limited company. | Yes |
We’ll assess the financial strength and competency of a portfolio landlord by taking into consideration their experience in the buy-to-let market, their full property portfolio and any outstanding mortgages along with their assets and liabilities.
Our existing rental calculations will apply for new borrowing. All background BTL properties within the portfolio, including unencumbered properties, must collectively meet a minimum Interest Coverage Ratio (ICR) of 145% at a stressed rate of 5.25%.
However, for applications from basic-rate taxpayers, the background portfolio may be assessed using a reduced ICR of 125% at a stressed rate of 5.25%, subject to verification of the applicant's tax status.
In addition to our standard criteria, portfolio landlords will be required to supply details of any applications currently being processed with other lenders and complete an assets statement. We’ll also ask these landlords if they anticipate any financial changes or changes in circumstances which could impact the affordability of their portfolio.
Portfolio lending limits
Maximum portfolio lending
Maximum Group BTL exposure to an individual is £1,000,000 for a first time landlord and £3,000,000 for an experienced landlord.
Maximum total exposure - no limit to the total number of properties (max. 10 with mortgages).
Maximum number of Group BTL loans is 3 for first time landlords and 5 for experienced landlords.
Maximum properties in portfolio
We do not have a maximum number of properties allowed in a portfolio. However, no more than 10 properties in the portfolio can be mortgaged.
Is there a maximum LTV applied on individual units in the portfolio?
We won't assess the LTV on any portfolio properties, only the new loan being applied for. We'll look at LTVs in respect of the overall quality of an application.
Maximum LTV on portfolio
We don't assess the LTV at portfolio level.
Are inflight applications included in the total allowable number of portfolio properties?
No, we only count inflight applications when assessing whether the applicant is a portfolio landlord or not. Inflight applications will not count towards the total number of properties you are allowed and won’t be included in our rental calculation.