Categories: buy to let mortgages | portfolio landlords

New research has revealed a significant increase in the number of landlords intending to release equity from their existing portfolios.

The average value of a portfolio landlord’s properties now exceeds £2 million.

Investments ahead

Foundation Home Loans, a specialist UK lender, has released data that shows 30% of surveyed portfolio landlords intend to remortgage in the next 12 months.

A third of these landlords plan to do so in order to release equity from their portfolios, which according to Foundation, is likely to be put towards further property purchases such as mortgages for buy to let properties.

The research also shows that portfolio landlords are more likely to remortgage in the next year than their ‘consumer’ counterparts, who have four or less properties.

Portfolio prospects

In the second quarter of 2021, the average portfolio value was around £1.25m across all landlord types.

The current average loan to value ratio of a portfolio stands at just below 50%, with 40% of all properties within an average portfolio being owned outright.

This could present some landlords with an interesting opportunity in the form of equity that may have been boosted by recent increases in house values.

George Gee, commercial director at Foundation Home Loans, said:

“We’ve seen the buy-to-let market moving steadily towards a greater level of professionalism for some years now, and this has meant a growing number of landlords are now defined as ‘portfolio’ operators and have long-term plans which involve making the most out of their properties.

“The research shows a number of key portfolio landlord intentions, particularly around extracting equity from their properties. Over the past year, in many areas of the country, we’ve seen double-digit house price growth, and even without access to the stamp duty holiday, the intention to remortgage to take out that increased value to purchase more has grown.

“Portfolio landlords are likely to grow in number in the months and years ahead, and as specialist lenders in this space, we will continue to develop the product options and flexible criteria to help them get the most out of their existing properties to expand their letting footprint.”

Portfolio products

With multiple properties to consider, it can be difficult to find the best buy to let mortgage rates for your portfolio.

Whether you intention is to release equity to invest, to save money with product costs, or you are after a competitive rate for your current loan to value, our specialist mortgage advisers are here to help.

Call on the number above to get straight through to an advisor or click here for a call back to discuss your portfolio needs.