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Background Portfolio Exposure Limits FAQs

Further information for changes to our background portfolio exposure limits.

From 18th November, your landlord clients will be permitted to hold a total of 20 mortgaged properties, with a maximum total borrowing limit of £5m (including the subject property coming to Kensington).

This applies to mortgages on buy to let properties that are owned solely, jointly by applicants or through Limited Companies.

Please note, to secure a product on the existing exposure limits, the full application must be submitted by 5pm on Monday 17th November.

Frequently asked questions

  • We are making these changes to enable us to have full visibility of our customers buy to let finances.
  • Customers who have a portfolio of 4 or more mortgaged buy to let properties including the subject property coming to Kensington.
  • No, we will continue to underwrite in the usual way and only stress test properties held within the entity we are lending too. For example, if your customer is purchasing a property held within a Limited Company we will only underwrite properties held by this entity and vice versa.
  • We apply a total loan to value cap at 80% across a customer’s total portfolio (regardless of size).
  • No, our maximum lending limit to an individual (or joint applicants) remains unchanged at £2m combined across residential and buy to let mortgages (inclusive of fees).
  • No, there will be no impact to Product Transfers.
  • Yes, as long as the aggregate value does not exceed our portfolio exposure limits of 20 mortgaged properties or a maximum £5m worth of borrowing (including the subject property coming to Kensington).

  • We have added two new questions to our portal as part of the application process to capture an aggregate balance of mortgaged properties owned by the entity we are lending to plus other buy to let properties owned by other entities or in personal names.

    Example screenshot of the portal's questions

  • Yes, we will ask for a Property Portfolio Summary. We will need either:
    • Personal Portfolio summary or Ltd Co Portfolio summary this needs to explain who is applying for our mortgage eg. Jane Brown (personal) or Jane Brown Ltd (Ltd Co.)
    • If your client has a combination of other BTL properties in Other Entities we will require an Other Entity Portfolio Summary

  • We will not accept any mortgages held within the customer’s total portfolio that are currently 1 or more months in arrears.  A new question has been added to the portal as part of the application process.

    Example screenshot of the portal's questions

  • No, there is no change to our criteria. We will continue to use the DSCR limit relevant to the entity applying for the mortgage and stress test properties only held within the entity we are lending to.