Hodge Bank – Landlord BTL  Portfolio Mortgages

by Howard Reuben CeMap CeRER

11:46 AM, 11th November 2019
About 12 months ago

Hodge Bank – Landlord BTL Portfolio Mortgages

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Hodge Bank – Landlord BTL  Portfolio Mortgages

Hodge is a lender more associated to Residential or Equity Release mortgages, but has recently announced a Portfolio Buy-to-Let product for portfolio landlords, where the portfolio can be held under one loan facility.

As per the PRA definition, Portfolio landlords are classed as those with more than 3 mortgaged properties. Each portfolio loan will be assigned a dedicated Relationship Manager who looks after the portfolio and is the single point of contact for the bank.

The product is available to either Ltd Co or LLP borrowers or those held in personal name.

One interesting aspect of the product is that properties can be added or removed from the portfolio without incurring ERCs. Only if the Portfolio loan is redeemed would Early Repayment Charges apply

Property type accepted is generally flats (not studio) and houses (not HMOs)

Maximum borrowing is 75% LTV over a 25 year term. Minimum portfolio loan is £250,000 with the minimum property value being £75,000. The maximum number of properties within the portfolio is 25

Interest Rates are all fixed, on 5 year periods, starting at 3.25% for 60% LTV

There is a Product fee charged on a per property basis and this starts at £1,500

There are no minimum income requirements.

Maximum age at application is 65, maximum age at the end of the mortgage is 85. Ltd Co applications will be reviewed on a case-by-case basis

ICR (Stress Testing) calculations are based on LTD Co (125%), LLP (145%), Basic and Higher Rate tax payers (145%), Additional rate tax payers (155%)

To discuss your situation and circumstances with my team at HD Consultants please contact us using my form below.

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