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Portfolio Landlords

Portfolio landlords

All of our standard BTL criteria still applies to the subject property on portfolio landlord applications. However, there is some additional criteria to consider.

In every portfolio landlord case, intermediaries will have to provide us with information about all the properties in the applicant's portfolio, not just the property being applied for (the 'subject property'). We'll fully validate that information.

What is a portfolio landlord?

We consider a portfolio landlord to be a client who has four or more buy to let mortgaged properties. This definition applies to sole and joint (or more) applications in the following way:

Sole applications – if an applicant owns four or more mortgaged buy to let properties, including the property they're applying for, we'll class them as a portfolio landlord.

Joint (or more) applications - we'll base our calculation on the total number of mortgaged properties in which any or all of the borrowers has a legal ownership, including the property they're applying for.

For example, if Mr B solely owns two mortgaged properties and Miss C solely owns one mortgaged property, and together they apply for a mortgage on a new BTL purchase, they will have four properties in aggregate. In this case, we'll consider them to be a portfolio landlord.

Our portfolio landlord criteria

The good news is that all of our standard BTL policy still applies to portfolio landlord applications, including:

  • The maximum number of BTL mortgages per household with any lender allowed is 10.
  • The maximum number of BTL mortgages allowed per household with CBS group is three.
  • Where there are two or more applicants, the maximum applied is at household level – the total number of mortgaged properties can be greater where they are financially independent households.
  • The minimum ICR for the subject property will be the same as our standard BTL policy. Where there are two or more applicants, the minimum ICR applied will be based on each individual's total gross annual income and the applicant with the highest tax status. Our BTL-ICR policy.
  • For the subject property, our existing LTV limits, maximum aggregate loan of £1M and minimum income criteria will remain the same.

Portfolio landlord specific criteria includes:

  • We'll assess all the properties in the portfolio in all cases. This means that you'll have to provide us with information that includes the value of each mortgage, monthly mortgage repayments, monthly rental amounts and estimated property values. You'll also need to give us full details of any unencumbered BTL properties.
  • There should be a maximum LTV of 65% across the whole portfolio. This calculation will include properties that are unencumbered and the property they’re applying for.
  • The minimum ICR across the whole portfolio, including properties mortgaged with other lenders, should be 125% (based on a reference rate currently of 5.5%). This calculation will include properties that are unencumbered and the property they're applying for.
  • No single property should be below an ICR of 100%.
  • Portfolio landlords must have acquired their first BTL property more than 24 months before the current application. No more than three properties (prior to the current application) should have been acquired within the last 12 months.
  • The dedicated BTL portfolio underwriting team will also review the portfolio to consider geographical exposure and property management risk. For example, the number of properties in the same block of flats or street, and how properties are managed.

What you need to know

The application process will change:

When submitting an application for a portfolio landlord, go straight to Full Mortgage Application (PDF 843KB)Opens in a new window as we'll need to assess the BTL portfolio so we can give you a decision. The portfolio information will only be requested on full submission and not at AIP stage.

There’s no need to complete an AIP unless you have concerns over your customer's credit profile. If you do, we'll underwrite the AIP and make a decision subject to receiving the portfolio information on full submission.

It's important that you give us all the information we need. Fully complete the Buy to Let portfolio document and include the full address and postcodes of all properties in the portfolio, including any unencumbered properties. This will allow our dedicated team of portfolio landlord underwriters to validate and assess the application.

There are two ways of doing this:

Buy to Let portfolio document (xlsx 644KB)Opens in a new window: When you enter the information, the spreadsheet will help you establish whether your application fits our criteria by automatically calculating the minimum ICR and the maximum LTV across the portfolio. (Remember to click ‘Enable Editing’ at the top of the document so that you can enter the information).

If you have restricted access to a network, or your platform won’t allow you to use the above Excel version, use this: Buy to Let portfolio document – PDF (PDF 643KB)Opens in a new window. This is an editable PDF and you’ll need to manually calculate the minimum ICR and the maximum LTV across the portfolio to establish whether the application fits our criteria.

There may be instances where we’re unable to validate all the information electronically. If this is the case, we may ask you for further information, for example:

  • Bank statements
  • Mortgage statements
  • Rental agreements
  • Redemption statements.

Existing customers:

You may have existing clients who will be defined as portfolio landlords. If they apply for a transfer of equity, porting or further advance with us, you'll need to complete the appropriate Buy to Let portfolio document in full and they'll be assessed under the new policy.

You won't need to provide a Buy to Let portfolio document if they're applying for a product transfer.

If you have any questions about our policy our downloadable information sheet (PDF 458KB)Opens in a new window may help, or you can call us on 0800 121 7788 and select option 2.