How many buy to lets can I buy?

by Readers Question

9:11 AM, 3rd February 2014
About 7 years ago

How many buy to lets can I buy?

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How many buy to lets can I buy?

Does any one know the current limits on how many buy to lets/how much one can spend, before the big lenders pull the plug?

I know some say you can have ‘3 buy to lets’ or ‘9 buy to lets’ or whatever, others say you can borrow an amount of money.

I know there are limits across the Lloyds group but I’m having trouble finding the actual figures.

Can any one help?

I’d like to make an up to date list. How many buy to lets can I buy?

Peter



Comments

Mark Alexander

9:20 AM, 3rd February 2014
About 7 years ago

Hi Peter

Don't worry about this, if your business is strong enough there are no upper limits.

The Lloyds group only allow you to have three mortgages with them and many other lenders target their lending towards small landlords. However, there are also specialist lenders such as Handlesbanken and Coutts & Co which have no upper limits at all and several in between such as TMW, Aldermore and Shawbrook.

If you run out of lenders that will be the least of your problems! You will end up running an empire and all of the associated issues that go with that.

It's pointless trying to compose a spreadsheet with these details Peter because things change all the time. Also, the lenders you will want to work with when your portfolio grows will not publicise criteria, instead they prefer to "take a commercial view".

Better use of your time would be to acquaint yourself with a few good brokers and if you do intend to build a very large portfolio I suggest you find a broker who is both an IFA and an NACFB member. Try >>> http://www.property118.com/member/?id=314

I hope that helps.
.

Howard Reuben CeMap CeRER

11:11 AM, 3rd February 2014
About 7 years ago

Hi Peter

Don't rely on the 'big names' for the provision of BTL mortgages only! One of the biggest - BM Solutions (who used to provide unlimited mortgages) - does indeed have an 'across the Lloyds Group' limit of 3 mortgage accounts only, now.

But to answer your specific question, the actual answer is ... as many as you can afford / manage.

Working with a true whole of market Broker will allow you to have access to a huge number of specialist lenders too, and many of these have no upper limits at all.

In summary Peter, there is no need to make an up to date list as there really is no list to make (when gaining access via Brokers such as us).

A word of caution though - it's not always the property or the mortgage that limits your choice, but the borrower has to personally be eligible for the deals in the first pace as well.

I always recommend that a borrower always speaks with a professional, experienced and whole of market Broker to progress any BTL enquiries.

Hope this helps.

Howard

Jeremy Smith

15:16 PM, 3rd February 2014
About 7 years ago

Hi Peter,
Howard Reuben's reply to you is very relevent to me:
"borrower has to be personally eligible..."

As a single person with very little as outgoings, I have a nice little income from a handful of rented properties, all with low LTV loans, loads of equity, etc, etc.
I can easily afford another BTL mortgage, covering the void periods easily with no rental income from it....
But I do not fit the minimum 'earned' income criteria that alot of the usual lenders insist upon.
I do not do alot of earned income work now, due to various reasons I cannot go into here.

I am currently working with one of Property118's recommended/business partners, to find a new BTL mortgage for my next purchase.

- An excellent service, I may add !!!

Simone Gilks (Mortgage Adviser)

18:12 PM, 3rd February 2014
About 7 years ago

Dear Peter

Here is the factual reply to start with, though I must stress you shouldn't be pulled in by the big high street names as they are very limiting to say the least. I work with investors and large portfolios so I understand the need to have access to the whole of the market place but importantly not to be driven by headline rates.

***Lloyds Banking Group***

Monthly rental income must cover 125% of the monthly mortgage payment calculated at the Buy to Let affordability rate or product rate, whichever is the higher.
A £2,000,000 lending limit applies to all Buy to Let, Let to Buy and House 2 House borrowing across the Retail Division of Lloyds Banking Group.
A maximum of 3 properties applies to all Buy to Let, Let to Buy and House 2 House lending across the Retail Division of Lloyds Banking Group.
Maximum lending on each individual Buy to Let property of £1 million.
Confirmation of anticipated rental income will be provided by the valuer as part of the valuation.
Minimum acceptable property value or purchase price (whichever is the lower) is £40,000.

Hope that helps you, but please do always try and obtain relevant advice that will help you place your mortgage business correctly.

many thanks

Simone

Hazel de Kloe

17:41 PM, 4th February 2014
About 7 years ago

Hi Peter

I would echo the comments made above.

You really don't need to worry about upper lending limits as your business and the facilities open to you will evolve as your portfolio grows.

It is a good idea to seek good mortgage advice and preferably work with a broker who understands lending from an investment perspective. If they know what you are looking to achieve, then they can best advise you going forward.

Best,
Hazel

Howard Reuben CeMap CeRER

18:17 PM, 4th February 2014
About 7 years ago

Reply to the comment left by "Hazel de Kloe" at "04/02/2014 - 17:41":

We don't always know what we don't know so working with a professional whole of market Broker (who is also a portfolio landlord) - who does know - is indeed the best first step (and then ongoing steps as the BTL business grows).

Hazel, without sounding 'stalkery', I've just looked at your website .. very impressed!

Howard
Portfolio owning 'Buy To Let Mortgage Firm of the Year' award winner! 🙂

18:19 PM, 4th February 2014
About 7 years ago

Hi Peter,

I am happy to direct you to the up-to-date list you requested:

Maximum BTL lending policies:

http://www.propertytribes.com/maximum-buy-to-let-lending-policies-t-10265.html

Hope this was what you were after, but do seek specialist financial advice if you need help moving forwards.

Mark Alexander

18:28 PM, 4th February 2014
About 7 years ago

Reply to the comment left by "Vanessa Warwick" at "04/02/2014 - 18:19":

Hi Vanessa

That list is a great starter for 10 but what about all the other lenders you have missed and the various quirks in their criteria and pricing models?

There are also dozens of lenders which do not publish criteria, especially the commercial mortgage lenders. Examples include Handelsbanken, Barclays commercial, Lloyds commercial, RBS commercial, Santander Commercial, Coutts & Co, etc. many of which also have vanilla BTL products for smaller landlords with definitive criteria as well as larger portfolio facilities which they only market via select panel brokers and all of which are underwritten on the individual merits of each case and often submitted to a credit committee for final approval.
.

18:33 PM, 4th February 2014
About 7 years ago

Hi Mark,

The list was produced by Property Tribes Mortgages, not me.

Why don't you create a more comprehensive list then, rather than finding fault with the one from PTM?!?!

I am sure the original poster would appreciate it.

Mark Alexander

18:42 PM, 4th February 2014
About 7 years ago

Reply to the comment left by "Vanessa Warwick" at "04/02/2014 - 18:33":

As I said in my original response Vanessa, attempting to create such a list is a futile exercise. If a landlords business makes sense there will always be a lender out there to fund it. Just ask Donald Trump! I bet he doesn't use a list of "of the shelf" mortgage products.

The point is, it's all about using an experienced broker, preferably a landlord too, who will meet you, understand your requirements and be able to provide advice backed by Professional Indemnity Insurance.

As you know, we own our own mortgage sourcing system but it exists for guidance only. I would not recommend anybody to rely on non-advised systems in the current market, there are just far too many pitfalls. The credit crunch was a game changer and I am so pleased to have got out of the mortgage market when I did.
.

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