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PORTFOLIO BUY-TO-LET
WHAT YOU NEED TO KNOW

In September 2017, new regulations were introduced for portfolio buy-to-let lending.

A portfolio landlord has four or more mortgaged rental properties, including the new application. And the total number of mortgaged BTL properties should include those held by all parties on the application.

In line with the latest regulation, portfolio landlords will be assessed against additional criteria and your clients will need to provide some extra documentation.

We’re using eTech’s BTL Hub, so you can quickly provide us with details of your client’s portfolio.

Criteria for portfolio landlords

  • We’ll accept up to 75% LTV on the property to be mortgaged.
  • And up to five BTL mortgages with Virgin Money, or £3m.
  • At least 24 months’ experience of letting properties is required at the time of application.
  • Personal income can’t be considered for any property rental shortfalls.
  • We accept up to 10 mortgaged BTL properties across all lenders, including the new application.
  • In total the portfolio must not exceed 70% LTV, with a minimum interest cover ratio of 145%, at an interest stress rate of 5%. If your client owns any mortgage-free properties, the equity and rental income on these will be taken into account. This excludes the new application.
  • Up to five properties either mortgaged or mortgage-free and including the new application, can be within the same postcode area e.g. NE3, EH2.
  • We will accept up to two BTL properties (either mortgaged or mortgage-free) purchased in the last 12 months, including the new application.

Submit your client’s property schedule to the BTL Hub

Login to BTL Hub

Affordability and rental tests

  • We’ll ask for evidence of a minimum personal combined gross income of £25,000. This excludes income received from BTL properties. We’ll accept non-GBP / £Sterling income as part of this.
  • The rental income must cover 145% of the mortgage interest. This will be calculated in one of the following ways:

    • All products will be calculated at a notional rate of 5.50%, except five-year fixed rate products.
    • Five-year fixed rate products will be calculated at 5.00%.
  • The rental income for a BTL remortgage with no additional borrowing must cover the mortgage payment by 125%, calculated at a notional interest rate of 5.50% across all products.
  • Personal income can’t be considered to meet any rental shortfalls for portfolio BTL.

Straight balance swap remortgages and product transfers

If your client wants to secure a new deal for an existing property without taking any additional borrowing, you need to know the following:

  • We won’t need a business plan, cashflow or details of the property portfolio for product transfers and remortgages with no additional borrowing.
  • In some instances, clients remortgaging to Virgin Money from another lender will be asked to complete a monthly BTL expenditure form. This can be downloaded from the useful downloads section of the website. This form will be used to assess if the rental income covers the expenditure for letting the property, but we will let you know if this is needed.

This table gives you a summary of our portfolio landlord criteria:

Please see the BTL and Consumer BTL section of the A-Z Lending Policy for all non-portfolio landlord applications.

Additional Documentation Requirements

We need three new forms completed for each mortgage application:

For guidance on when and how to submit these documents, please view our sales aid.

BTL Hub

We're working with eTech to give our intermediary partners access to our BTL Hub, making it quick and easy to submit details of your clients’ property portfolio to us.

Please note:

  • You shouldn’t include details of the property they’re applying for within the property schedule.
  • You should include details of properties held in your client’s personal name, limited company or any other legal entity.
  • You should wait until you’ve received an accepted Decision in Principle before you submit the property schedule into the BTL Hub.

Before you can use the BTL Hub, you’ll need to register using the link below.

Register now

Already registered for eTech’s BTL Hub? Login using the link below.

Login to BTL Hub

What happens next?

You’ll be sent an email to the address you have registered with. Follow the link to set up your password and get started.

Link to Virgin Money

Once your broker firm is registered with the BTL Hub you’ll need to link to Virgin Money. This can be done via the ‘lenders’ section on the dashboard.

Help and support

Read our BTL Hub quick start user guide  PDF opens in a new window  (PDF, 1.1MB) for assistance or alternatively, contact:

Etech Service Desk Support
Telephone: 0333 1231417
Lines open Monday to Saturday 8am - 8pm, Sunday 9am - 1pm

eTech