portfolio landlord struggling for lenders

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    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

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