Over three in five (61%) Fleet Mortgages applications were from portfolio landlords in the fourth quarter of 2017 – those with four or more mortgaged buy-to-let properties.
This represents a jump from half (50%) in the third quarter of 2017.
Bob Young (pictured), chief executive of Fleet Mortgages, said: “The shifting shape of the buy-to-let market is clearly moving in the direction of greater professionalisation, with more portfolio landlords who are not just investing for the long-term but are increasingly likely to be doing this as their full-time day job.
“This is something of a move away from the days of the ‘amateur landlord’ and is a result of a number of factors, not least the increase in stamp duty and the cuts to mortgage interest relief, which are leading some landlords to consider their future in the sector, while others are committed to growing their portfolios.
“Portfolio and professional landlords continue to be focused on the opportunities available, and we believe that a combination of landlord ambition and the fact that our focus on simplicity appeals to advisers and their clients, are fundamental reasons why we are seeing an increase in applications in this area.”
The Prudential Regulation Authority demanded that lenders look at a buy-to-let borrower’s full portfolio when they have more than four mortgaged buy-to-let properties from September.
However Fleet isn’t regulated by the PRA and assured applicants that they won’t need to key in details of their properties or carry out additional work, while there will be no delays for the client due to the additional processing.
Fleet has an income coverage ratio of 125% at 5%.