Portfolio landlord criteria
Portfolio landlord criteria are the checks a lender applies when you own multiple mortgaged buy-to-let homes. In the UK, the Prudential Regulation Authority (PRA) expects lenders to treat borrowers with four or more distinct mortgaged buy-to-let properties as portfolio landlords and to use a more specialist underwriting approach than a single-property case.
From a landlord’s point of view, the “criteria” typically mean the lender looks at your whole business, not just the one rental property being mortgaged. You should expect to provide a full portfolio schedule, including addresses, property types, current values, outstanding mortgages, interest rates, monthly rent, and whether any are owned personally or via a company , relevant if you’ve considered property incorporation tax. Many lenders also ask for your experience and how you manage the tenancy lifecycle, think property listings, property viewings, repairs, and handling housing disputes.
Affordability is usually stress-tested at portfolio level. Lenders commonly assess an interest coverage ratio (ICR), expected rent versus interest payments. Often stressed at a higher interest rate to see whether the portfolio can withstand interest rate rises or void periods. The PRA’s supervisory statement sets expectations around affordability assessments and warns firms not to rely on future house price growth or equity as the “plan”.
They may also scrutinise concentration risks, property types that need extra compliance, for example licensing or HMOs, and your contingency for rent arrears and major works, especially if you’re a leasehold landlord facing service charge shocks. Some lenders publish their own versions of “portfolio” definitions and thresholds, so read the criteria closely.
Finally, the Renters’ Rights Act in England abolishes Section 21 notice and shifts possession onto Section 8 notice and specific grounds for possession. That increases the value of robust cash buffers and disciplined tenant management when lenders model risk and arrears scenarios.
Also see the landlord blog articles, including:
