portfolio landlord struggling for lenders

Collapse
X
  • 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
    thanks

    #2
    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

    Comment


      #3
      Try google search for Paragon Bank + Portfolio mortgage

      Comment

      Latest Activity

      Collapse

      • Let to rent or let to buy
        Propertygoesup
        I've got my only property let out as follows:
        value 215k mortgage 150k
        Rent 9k mortgage 4k
        Mortgage 2.69%
        I don't own a residence as still at family home.
        Confused about next move. I've got 75k cash available and borrowing for another mortgage around 140-150k.
        Do...
        21-03-2019, 18:11 PM
      • Reply to Let to rent or let to buy
        Propertygoesup
        I guess if I look at it that I own one property at the moment regardless of whether it's let out or not. Then what decision to take from there.
        buy second property and be leveraged 75% on each plus paying 3% sdlt.
        or paying off more of property one and having the surplus to invest in other...
        22-03-2019, 15:15 PM
      • Bungalow for a buy to let?
        Spartanlandlord
        We have 6 buy to lets but was wondering if anybody has any thoughts about the desirability of a bungalow as a buy to let? I know that bungalows carry a premium so the yield might not be so good but wondered if anybody had opted for a bungalow and for what reasons? Thanks.
        01-03-2019, 19:51 PM
      • Reply to Bungalow for a buy to let?
        RobR
        All of my rentals are Bungalows.
        My tenants vary from young couples to elderly retired and I have never struggled to find suitable tenants. The reason I like bungalows:
        1. Easier to work on for Maintenance purposes.
        2. They don't make them anymore.
        3. Suit a wider range of...
        22-03-2019, 14:37 PM
      • Reply to Bungalow for a buy to let?
        PJackson
        Just a rough estimate.
        10% for repairs, 12% for management, 10% for voids
        750 rent, 350 mortgage
        (750-350)*12 = 4800 *.9 *.88 *.9 = 3,421 = ~7.6% of 45,000
        22-03-2019, 14:18 PM
      • Remortgage Now ??
        mojo_scotland
        Hi, one of my properties fixed rate expires in August.

        I am within my 6 months till remortgage. Would you consider getting an agreement tied down now in advance, with Brexit occuring in May ?

        Personally i dont think rates will go any lower - possibly upwards after Brexit ...
        22-03-2019, 14:04 PM
      • Reply to Let to rent or let to buy
        Propertygoesup
        Thank you kind sir I just have a short memory I think....
        21-03-2019, 19:50 PM
      • Reply to Let to rent or let to buy
        loanarranger
        Propertygoesup , I don't wish to appear rude but haven't we already explored your question on previous occasions with many of us making what I think was constructive suggestions, I fear that others may be disinclined to respond to a repetitive question. Sorry to say this but I just wonder why.
        21-03-2019, 19:49 PM
      • Which property to buy
        Propertygoesup
        When buying property either to rent out do you have any no no's or must haves?
        eg some people avoid studio flats or flats in general due to being leasehold.
        In my area however you cant get any decent houses below 250k. My budget currently is 230k so I am just finding flats. I can get a...
        31-01-2019, 11:06 AM
      • Reply to Which property to buy
        buzzard1994
        As you mentioned living in it - buy a property bigger than you need, rent a room. Potentially £7.5k tax free....
        21-03-2019, 10:49 AM
      Working...
      X