From Friday 29th September The Nottingham announces new portfolio landlord requirements.

Where the total number of mortgaged properties at the application level, including the property to be mortgaged, is four or more, the application is considered to be a Portfolio Landlord application.

For Portfolio Landlords, a fully completed Assets and Liabilities form must be provided which includes details of their background portfolio and business plan. The business plan must show that the Portfolio landlord:

  • has at least 3 years’ experience in managing investment property(ies)
  • HMO properties are no more than 25% of the portfolio
  • has considered the ongoing and future management of the portfolio, including professional and management fees

Portfolio Landlord applications must meet the following additional criteria:

Maximum LTV for the portfolio
75% LTV

 

Max customers BTL portfolio size
10 BTL properties

The overall portfolio must be evidenced as self-supporting by applying an ICR calculation to the aggregate (including unencumbered properties and the property to be mortgaged) portfolio totals. The total rental income derived from the portfolio must cover the total portfolio mortgage commitment based on the following assumptions:

Minimum Interest Coverage Ratio
155%

 

Assumed stressed interest rate
4.00%