Mortgage brokers like our approach to portfolio landlords because of our simple to use system. They also like it because we are flexible – we don’t have any limits on the size of the background portfolio (subject to a maximum borrowing of £3m with us) and we do not request unnecessary business plans either.
We believe the simplest solution is to just look at the existing portfolio’s leverage, loan-to-value (LTV) and coverage.
All we require is a spreadsheet, showing details of the portfolio. We use this, along with automated valuation models (AVMs) and other background checks, to focus more on the concentration of the portfolio, undertake bespoke stress tests and ensure that the aggregate portfolio is 75% or less.
At DIP stage we will require a summary of the portfolio, including: total number of properties in the same postcode; value of the properties; loan amounts for the properties; rental income for each property; details for new loan.
At FMA stage we will require details for all the properties in the portfolio. There is no need to submit business plans and liability details.
Want to discuss a case? Call our experienced team on 0344 770 8032 and they will help you find a solution for your complex client.