portfolio landlord struggling for lenders

  • Filter
  • Time
  • Show
Clear All
new posts

    portfolio landlord struggling for lenders

    hi thanks in advance for response all advice appreciated
    I have four in num properties currently all on btl, all with borrowing of 50- 75% I have a fith property currently being built with 0 borrowing , im hoping once completed to mortgage on btl [ after 6 months ] with the funds being used to buy more btl properties .
    the issue I seem to have is as im self employed and my earnings to not make the minimum 25k , im struggling to find lenders I already have properties with bm ,tmw as they don't have min income requirement ,but I recently looked at buying another property and meet resistance from these lenders as I already had one of there products and they seemed reluctant to lend again. I was considering starting a ltd company as no income requirements to put new purchases and the new development into. but a brooker has informed me even with an application through a ltd the fact im a portfio landlord as I have 4 properties in my own name, that this would also be assessed with the application , rather than the ltd being treated solely under its own merits and I could still struggle to get a lender on board
    my main question is the fact lots of people just live off property income and still acquire more properties not every property can be mortgage free how so

    2 will starting a ltd company and put future properties into get me over this hurdle with lenders , will ltd be assessed on its own merits or not as advice given

    3 any advice on how best to move forward

    You seem to have misunderstood the criteria of BM & TMW , as you have 4 properties as BtL’s you fall under a much stricter affordability regime which does carry an assessment of each property meeting their Portfolio rental assessment, have an adequate level of income BM for example require a minimum of £30000 (
    • Minimum earned income of 30k (per application) – Income defined as; earned income from employment or self-employment (including taxable profit from the property portfolio); pension income; investment income.
    Assuming that everything has been declared to HMRC which I suspect is the case it is important to know that there are a umber of lenders whose criteria is more accommodating to the requirements as set out by you and a good broker shouldn’t have too much difficulty in securing finance for you.

    Whether you decide to buy via a Ltd Co must ONLY be decided upon after talking with a good tax accountant but if he feels it is appropriate you need to understand that your personal income/ expenditure will be carefully assessed as you will be required to provide a Person Guarantee on any corporate borrowings and if you are considered to be marginal on this front your application will be declined.

    Unfortunately I cannot be prescriptive as to your plans as the financials are vague but again getting a good broker experienced in BtL should be able to assist


      Try google search for Paragon Bank + Portfolio mortgage


      Latest Activity


      • Overpay which mortgage?
        Hi All. We have a BTL interest only mortgage @ 3.88% on rental
        We also have a interest only mortgage on our residental house @ 2.05%
        If miraculously we have money to overpay , which should we choose?
        I thought 3.88% as higher interest , wife says 2.05% as its our residence and leave...
        23-05-2019, 14:27 PM
      • Reply to Overpay which mortgage?
        CGT is charged on what you get for a house versus what you paid for it. Whether you have a mortgage to pay off or not is immaterial.
        23-05-2019, 16:12 PM
      • Reply to Overpay which mortgage?
        Ok thanks. We thought overpaying on the rental increases the profit ie more CGT
        23-05-2019, 15:26 PM
      • Reply to Overpay which mortgage?
        I don't think your mortgage has any bearing on CGT.

        Even taking 40% tax relief off 3.88% is more than 2.05%, so I'd say the BTL is the one to overpay.
        23-05-2019, 14:33 PM
      • Workplace Pensions
        Going off on a slight tangent here.

        My workplace auto-enrolment pension now has me contributing £150 per month. My employer matches this.

        My statement reads, in today’s money...

        At 65 years old (I’m 36 now) I may receive.

        11k tax free. ...
        21-05-2019, 09:07 AM
      • Reply to Workplace Pensions
        The ones I've always seem assume no further contribution, but the OP seemed to suggest that the scheme has only just started, and, given the figures used for these estimates have gone down a lot from when I was first in a money purchase scheme, I think a £44k pension pot in present day terms couldn't...
        22-05-2019, 10:36 AM
      • Reply to Workplace Pensions
        I believe your pension statement is based on a calculation of what your pension fund is worth today and inferring no further contributions made. So if you stopped paying in to your pension fund, this is what your fund could potentially be worth at 65.

        Each year you contribute more, this...
        22-05-2019, 09:50 AM
      • Reply to Workplace Pensions
        its not as bad as mine your better off than me -
        my workplace pension 53pence a month and im 6 years off retirement i think ill get about 50 pound a year so im going to have to work beyond retirement doing on line work and stuff like leaflet distribution but id be happy with the 11,000 a year...
        21-05-2019, 14:50 PM
      • Reply to Workplace Pensions
        I'm a little bothered by the low figures.

        If the "tax free" amount is meant to reflect the position of today (ie. you can take out 25% tax free), it would mean your pension fund would be £44k when you are 65.
        Which means that the fund must have lost more than half its value...
        21-05-2019, 14:24 PM
      • Reply to Workplace Pensions

        The monthly return does appear 'low'. However, I put as much into my pension as possible each year to bring my income into a lower tax bracket.

        Think about how much it is actually costing you.

        For £300 contribution each month it is only costing you £120 (assume...
        21-05-2019, 14:08 PM