Checklists

Checklist provided by 

www.propertychecklists.co.uk

The Prudential Regulation Authority (PRA) definition of a portfolio landlord is a borrower with four or more distinct mortgaged buy to let properties, either together or separately, in aggregate. This includes properties owned in a limited company.

If this definition applies to you, when applying for a buy to let mortgage, lenders will ask you to provide more detailed information in support of your application than if you are not a portfolio landlord. This checklist  is to help you prepare all your paperwork before you apply for finance. You will need:

Proof of identity such as your passport or driving licence.

Proof of address such as a current utility bill, council tax bill or current bank statement.

Latest 2-3 years’ tax returns which can be downloaded from your HMRC account. If you don’t have an online account, we recommend you open one ASAP, but bear in mind your access code can take a few weeks to arrive.

SA302s which are statements of your income issued by HMRC and can be downloaded from your online account.

Up to six months’ bank statements are required so that the lenders can see how you’ve earned, spent and managed your money each month for the last six months. Bear in mind that you’ll need to provide statements from all your bank accounts, not just the one which shows your rental income and outgoings.

An up-to-date spreadsheet of your entire buy to let property portfolio so that lenders can assess your overall borrowing and commitments. Keep a spreadsheet which lists:

• Each buy to let property
• Type of property and number of bedrooms
• Name of property owner, ie you personally or limited company
• Rental income
• Details of any outstanding mortgages

Bear in mind that every lender wants to see slightly different information, so be as detailed as possible and keep the spreadsheet up to date.

Evidence of other income. As well as being a landlord, do you have a ‘day job’ or income from pensions or other investments? Lenders will take other sources of income into consideration when deciding how much you can borrow, so make sure you can provide the relevant paperwork, ie:

• Pay slips

• Pension statements

• Shares

Business plan so that lenders can understand your investment strategy, now and in the future. It needn’t be a long plan but should include:

• What type of properties you buy?

• Where you buy them?

• How you buy them and on what terms, ie interest only or capital repayment?

• What is your exit strategy?

Download the FREE eBook, Is buy to let a wise investment?, which includes a comprehensive Property Investment Brief to help you manage your financial expectations.

Cash flow forecasts for lenders to understand how you manage your money and property portfolio, eg:

• Do you have cash reserves to cover void periods?

• How much do you spend on property maintenance and emergency repairs?

• How much income do you receive on a monthly basis?

• What are your costs?

• Do you have a contingency fund?

Not all lenders give buy to let mortgages to portfolio landlords so do make sure you get a specialist broker to help you. And if you can assemble all the above information beforehand, it really will help your broker to identify the most suitable lender and speed up the mortgage application process.