BoI expands BTL proposition

Landlords with more than five properties will be able to create a portfolio with an unlimited amount of dwellings up to £20 million.

Ex-local authority properties will now be accepted, with a minimum value of £90,000, and BoI will also accept holiday lets, but with a different rental calculation to regular BTLs.

Ian Bates, head of marketing at BoI Mortgages, said: “By understanding the needs of the professional investor, we have devised a product range which will help landlords consolidate and expand their portfolios.”

All professional landlord cases will go through a dedicated underwriting team and 100 per cent rental cover is available on fixes of three years or more.

The maximum individual loan-to-value (LTV), up to £1million, will be 85 per cent, while up to £2million will see a 75 per cent LTV barrier imposed.

Holiday let rental income will be calculated at 50 per cent of the actual or projected annual rental income, with seasonality excluded from the calculation.

Jon Burridge, managing director of Quantum Mortgage Brokers, said: “It’s fantastic that it is allowing ex-local authority properties into the portfolio but it is missing a trick if it doesn’t allow houses in multiple occupancy in there.”