Why Being A Portfolio Landlord Matters.

What do banks mean when they talk about Portfolio Landlords? Well with the changes with Buy To Let, banks have been told to look at the whole of a landlord's portfolio when they look at issuing new finance. Four properties, set up in any configuration, classifies you as a Portfolio Landlord. With this classification comes more paperwork, including the portfolio's current rental income, its total equity value and the size and rates of the mortgages which have already been issued.The bank will also look at your "Loan to Value" figure- i.e. how much you've borrowed against the worth of the equities you hold. Essentially what they are now asked to do is stress test the whole portfolio in a more meaningful way rather than just looking at your outgoings and income. Buying sensible properties and doing the right "Due Diligence" should mean that you are fine and the Portfolio Landlord label you've been given won't effect the chances of you borrowing more. A good broker will be able to match you to the right lender. Peter Jones B.Sc FRICS Chartered Surveyor, author and property investor www.ThePropertyTeacher.co.uk PS. By the way, I’ve rewritten and updated my best selling ebook, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same. For more details please go to www.ThePropertyTeacher.co.uk/the-successful-property-investors-strategy-workshop/