Where a client has 4 or more mortgaged buy to let properties (or is buying their 4th property), we will assess the background portfolio as follows.
1. The maximum aggregate portfolio LTV is 75%; this is calculated across the whole portfolio including unencumbered properties
2. The aggregate portfolio rental cover ratio must be at least 125%, stressed at 5.5%
There is no limit to the existing size of the portfolio and we do not ask for business plans or asset & liability statements.
Note that we will continue to apply our usual rental coverage calculations for any property(s) being mortgaged with Foundation Home Loans.
We’re the common sense lender you can rely on to get the job done. We use clear and efficient processes, set consistent and fair lending criteria and give answers in black and white. On top of this, we have an expert team who have the power to make decisions so you don’t have to wait around.
It’s as simple as that.