Hinckley & Rugby Building Society has started accepting applications from portfolio landlords, providing loans for those with between four and 10 mortgaged investment properties.
All of Hinckley & Rugby’s current products will be available to portfolio landlords from Monday July 2.
The criteria includes that the interest cover ratio (ICR) of the property and the portfolio as a whole must be at least 145% at a reference rate of 5.5%. At least one applicant must have at least two years of experience as a landlord.
Carolyn Thornley-Yates, Hinckley & Rugby head of sales and marketing, said: “Because we are a manual lender, we can look at all the elements of a buy-to-let 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 maximum LTV of the portfolio is 70%, no applicant should have acquired more than three buy-to-let properties in the previous year and the applicant’s age must not usually exceed 80 at the end of the mortgage term.
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.
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.