What is a Portfolio mortgage?

As opposed to a singular buy to let mortgage, this type of mortgage finance allows you to cover all of your properties if you have multiple investment properties. Rather than, say, having three different mortgages on three different properties with three different providers, you would bring them all under one umbrella, with one payment and one provider. There are obvious advantages to this type of buy to let mortgage arrangement, rather than having multiple arrangements, and the main one is that it makes things much easier in terms of admin and organisation. The portfolio of investment properties needs to be registered as a limited company and finances and accounts are filed as they would be with any other business. As a property investment company, a buy to let mortgage provider would expect a landlord to have a minimum of four properties to be eligible for a portfolio buy-to-let mortgage.

 

Points to consider:

In terms of the criteria that lenders will require you to meet, again this will vary depending on the finance provider, however, more generally you’ll be expected to meet a few conditions.

• Minimum 24 months experience as a landlord

• A maximum of about 10 mortgaged buy to let properties

• Maximum Loan to Value (LTV) across the portfolio of 75%

• Personal income not accepted - Business plan required.