Low rate 5-year portfolio buy-to-let deal, up to 75% LTV
- Published: Tuesday 13 June, 2017
- Category: BTL mortgages
- By: Matthew Bone
- Updated: Thursday 15 June, 2017
If you have a portfolio of properties, having to juggle multiple buy-to-let mortgages can be tiresome, time consuming and costly. There is a solution.
The deal below could help you simplify your portfolio by bringing between 1 and 25 properties under one lender, one rate, and one buy to let mortgage product. What’s more, this is currently the most competitive initial rate for a portfolio deal that we can access.
5-year tracker portfolio buy-to-let mortgage
|Product type||Initial rate||Max LTV||Product fee||ERC's**|
|5-year tracker||3.29% *(BBR + 3.04%)||75%||1.50%||For 3 years|
*Bank of England Base Rate **Early Repayment Charge
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you have a mix of high and low equity in the properties within your portfolio this product can be helpful, because the overall loan-to-value for this deal is calculated from the total value of all the properties being mortgaged, and the total amount you wish to borrow.
This means that whilst some highly geared property may increase your LTV, low-geared property (where the loan-to-value ratio is low) may have a positive impact in levelling out the overall LTV amount.
Furthermore, this aggregated view of your portfolio will be used to assess affordability, using a rental calculation of 125% at 5.5% or 2% above pay-rate (whichever is higher) for limited companies and LLP’s and 140% at 5.5% or 2% above pay rate (whichever is higher) for professional individual investors.
Limited company/LLP applications accepted
This product is available for limited companies and Limited Liability Partnerships, but please note the lender will require debentures and full personal guarantees, on a joint and several basis, from all directors and shareholders.
Applications will be considered from companies even where the trade is not solely in property. The lender will require 3 years’ worth of accounts for limited company applications, although if the company has been running for a shorter length of time than this, then they will look at the available accounts on a case-by-case basis.
Restriction on property types
All properties must be single lets on one Assured Short hold Tenancy.
Houses in Multiple Occupation (HMO), student lets and Multi-Unit Blocks (MUB’s) are not allowed on this deal.
Maximum portfolio size
You can mortgage 1 to a maximum of 25 properties with this lender, but there is no stipulated limit on your overall portfolio size.
The lender asks for 75% of your portfolio to be located within the lenders coverage area, which is a large area within England, for the details speak to our advisors. Please note there is a degree of flexibility with this and applications are considered on a case-by-case basis.
Mortgage Criteria Summary
- No limit on overall portfolio size, but only up to 25 properties with this lender
- 75% of your portfolio must be in the lenders geographical area
- At least one of the applicants must be employed, self-employed, retired or a company director at the time of application.
- Not available for HMO, MUB, student lets or ex-pats
Apply with one of our team
This deal is an unusual one and bears a discussion with the team due to some aspects of its criteria, but it could offer a fantastic saving and a huge reduction in stress and administration, if you are managing a large number of properties!
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.