Portfolio landlords are now welcome at H&R for Intermediaries after the lender extended its Buy to Let (BTL) underwriting to provide loans for between four and ten mortgaged investment properties.
All of H&R’s current products will be available to portfolio landlords. And there is a quick calculator on the Society’s website – hrbs.co.uk/introducers – so intermediaries can check the lending policy and see if an application is likely to succeed.
The criteria include that the Interest Cover Ratio (ICR) of the property and the portfolio as a whole must be at least 145 per cent at a reference rate of 5.5 per cent. At least one applicant must have at least two years of experience as a landlord.
The maximum LTV of the portfolio is 70 per cent, no applicant should have acquired more than three BTL properties in the previous year and the applicant’s age must not usually exceed 80 at the end of the mortgage term.
H&R head of sales and marketing Carolyn Thornley-Yates said:
“Because we are a manual lender, we can look at all the elements of a BTL portfolio application. Each case will be assessed individually, enabling everyone to have confidence in its affordability.
“The calculator looks at the subject property, the portfolio as a whole, the level of experience and the rate at which the portfolio has grown. We will work closely with intermediaries to ensure their landlord clients achieve sustainable funding.”
The application process for portfolio landlords, and the supporting documentation required, is the same as for non-portfolio applications as the criteria is built into the online calculator. Current BTL products include: a two year discount at various LTVs; a lifetime discount and a five year fixed rate.
Whilst Hinckley & Rugby accepts a ‘top sliced’ combination of rental income and personal income for non-portfolio landlords, this is not the case for portfolios.
