The Happy Tenant Company announce launch of new portfolio landlord mortgage clinic

The Happy Tenant Company announce launch of new portfolio landlord mortgage clinic

The Happy Tenant Company has announced the launch of its free ‘Mortgage Advice Clinic’ with expert mortgage broker Lee Grandin of Landlord Mortgages & Lend2Landlord, to help prepare and educate portfolio landlords about PRA changes.

From 30th September, the Prudential Regulation Authority (PRA), part of the Bank of England, will start to enforce tougher standards for landlords with four or more mortgaged properties. The change means that, for the first time, lenders will need to undertake a full analysis of a landlord’s entire property portfolio as part of the lending process.

The Happy Tenant Company, which manages £500 million worth of property for portfolio landlords, says landlords need to be working with their property management companies and brokers to get paperwork in order so they are fully prepared when the time comes remortgage.

Adam Joseph, CEO of The Happy Tenant Company says: “The borrower costs that will be taken into account by lenders include everything from management and letting fees, council tax and service charges to repairs, insurance, voids and ground rents, as well as any other costs associated with renting out a property. Lenders will want to know a landlord’s current approach and future plans of portfolio management which is why we have joined forces with Lee Grandin to help support our portfolio landlords.

Our property managers keep stringent records of all costs associated with our landlords’ portfolios, which have been crucial following the introduction of stricter affordability tests imposed by lenders at the start of the year.  Now, however, this will be even more important as landlords will need this information as part of their business plan to support new mortgage applications.”


If fewer lenders decide to operate in the portfolio landlord market, reducing competition, the application process could be further delayed as those still lending to the sector will be faced with a larger volume of business. Lee Grandin, Managing Director at Landlord Mortgages and Lend2Landlord, will be advising new and existing Happy Tenant Company landlords during their monthly ‘Mortgage Clinic’ on how to get organised to support a smooth application.

He comments: “From October PRA regulations will set guidelines on how lenders should approach lending to portfolio landlords.  It is important that a landlord understands that there isn’t a definitive set of rules but a general requirement that a landlord’s portfolio rental business is sound, viable and sustainable.  It will require that a landlord produces a business plan to support its funding requirements.  We perceive that specialist brokers like ourselves, accountants and asset management firms like The Happy Tenant Company, will play a far greater role in the buy-to-let mortgage funding application process.”

Grandin adds: “Inevitably the changes will result in less competitive landlords (smaller sized landlords) being squeezed out from the market”

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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