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Categories: buy to let mortgage guides | property investment guides

Landlords and property investors, who own a number of properties, have options in terms of set up of their finance. It is possible to borrow against multiple properties on one mortgage loan, or take out a mortgage for each property.

If you are weighing up the pros and cons of portfolio buy to let mortgages, our team are here to help. We have put together a short guide, which covers the key points, below. 

If you have any questions, get in touch, you may also want to take advantage of our free portfolio review.

 

Video guide transcript: Need to knows on portfolio buy to let mortgages

“Are you thinking of investing in property? Whether that be a portfolio loan or an individual loan, we can help you either way. 

“The main differences between the two is as follows: If you go for a portfolio loan and your own plenty of properties, it makes it a lot simpler, because you just have one direct debit to pay. You also have one renewal day, as opposed to lots of different ones scattered throughout the year. 

“It does mean the yield can be a bit lower[with a portfolio loan], because you might not be able to get the most competitive rate in the market, but it's really just what your preference would be. 

“There are lenders who are able to offer to do it [put your properties on a portfolio mortgage]. They have different preferences [in terms of lending criteria], so they won't be able to do a single let and a HMO [House of Multiple Occupation] on the same sort of portfolio loan. You'd have to have all HMOs on one loan[and all the single lets on another].

“[It’s the same with] purchases and remortgages, you can't have those in the same loan, you'd have to do a separate loan for each. 

“Also, if you have properties that are in Scotland and you have properties in England, you won't be able to have them on the same loan. If you have four properties in Scotland, you could have them on their own loan, but you won't be able to add a property in England into the mix. 

“You can sell a property [held within a portfolio loan]. So, if you were to get five of your properties on one loan, you are able to sell one of them, and you won't have to stop the whole thing [(pay back the mortgage)] or anything like that. It is something you can do, you're not locked in for the whole term.

“[A portfolio mortgage] is a good way to equalise loan to value as well. 

“If you've got a property that has not got the highest rental, but it's got quite a lot of value, and you've got another property that has not as high value, but the rental income is a lot higher, you can mix them and meet in the middle, and then you can get the maximum value that you need out of your property.

“We can help you either way, so get in touch!”