Portfolio landlord criteria
The Mortgage Works portfolio landlord definition
A portfolio landlord is a borrower with four or more distinct mortgaged Buy to Let UK rental properties. Or seven or more for remortgage applications without capital raising.
This includes:
- properties owned through a limited company
- consent to let properties
- and all BTL mortgages owned solely or jointly by the applicant(s).
Additional information
We won't consider foreign properties when assessing portfolio landlords.
If there are two applicants, we’ll use the combined number of rental properties for both. For example, if the first applicant solely owns three mortgaged properties and the second applicant solely owns five properties, they would collectively own eight properties in the portfolio.
Affordability assessment
All new mortgage applications with The Mortgage Works are assessed to ensure your client can cover their monthly mortgage interest payment.
We'll also assess the existing portfolio to ensure the overall aggregate LTV and ICR is sustainable. The assessment will be based on the entire portfolio, including the new property and any rental properties without a mortgage.
We have different products depending on the size of your client's portfolio, so please make sure to check our latest product guide prior to application.
The following rental calculations and maximum LTVs will apply across your client's portfolio:
Existing portfolio rental calculation
|
Portfolio
Size
|
Maximum LTV
|
Stress
Rate
|
Interest Cover Ratio (ICR)
|
|---|---|---|---|
|
Up to 10 mortgaged BTL properties at completion
|
75% | 4.50% |
145%
|
|
11 or more mortgaged BTL properties at completion
|
Portfolio checker
Use our portfolio checker to get an indication as to whether your client's portfolio is likely to fit The Mortgage Works criteria.
Keying applications in TMW Online
- We ask for your client's personal income on all cases.
- At DIP stage, we look at gross annual buy to let income as well as the total number of properties, to identify if your client is/will be a portfolio landlord on completion of the application.
- If your client has 4 or more mortgaged properties, we'll ask for details of the total value and outstanding mortgage balances secured against the portfolio.
Please note:
- If a BTL property is jointly owned between your clients, you only need to enter them under one applicant, not both.
- If you're creating multiple applications for the same applicant(s), please try to submit them at the same time.
- If a property is owned by an applicant and a 3rd party, please key the full rental as well as the full mortgage amount.
Packaging applications (including Portfolio Portal)
Portfolio landlords with 11 or more mortgaged BTL properties need to provide three months' current account statements showing rental payments for their portfolio
All portfolio landlords will need to provide a property schedule, either by:
- Keying the details into our Portfolio Portal
- Or completing our property schedule form and uploading into our portal*
*When uploading The Mortgage Works property schedule form directly into the portal, please don't insert new columns into this spreadsheet, copy and paste over the cells or provide any additional information we haven't requested, as this will cause upload errors.
Once submitted, the details will be automatically validated and the results will be sent to our dedicated team of underwriters for assessment. We'll be able to assess the case more quickly if you're able to complete this as soon as you've completed the application.
See our Portfolio Portal guidance notes for more information.
Depending on case complexity and portfolio size, we may request further supporting information such as a business plan.
So your case can be processed efficiently, please submit all requested proofs and additional supporting information, but only when this is asked for.
Portfolio Portal Portfolio Portal guidance notesUseful tools, guides and forms
You can also download and print our sales aid which has a summary of the key changes.
We're here to help
We hope we've answered most of your questions above, but if you’re still unsure about something, you can contact your BDM or one of our experienced advisers on Broker Chat.