Portfolio Landlord Mortgages

For landlords with four or more distinct mortgaged Buy to Let rental properties, there are different opportunities available as a specialist Portfolio Landlord

Portfolio landlords are usually defined as someone with four or more mortgaged buy-to-let properties. When making a joint application, the lender will take into account the total individual and joint-mortgaged properties that are owned, either in your own names or in the name of a limited company or other legal entity. 

What are Portfolio Mortgages?

Specifically for portfolio landlords, portfolio mortgages allow landlords with multiple properties to combine all of their buy-to-let properties into one single portfolio mortgage with one lender. This saves the lender from having to deal with multiple buy-to-let mortgages with multiple different lenders, helping to make property management far easier for landlords. 

Portfolio mortgages are almost always interest-only, similar to normal but-to-let mortgages. Similarly, they are also secured on the rental properties themselves. 

As a landlord with four or more properties, you do not legally have to use a portfolio mortgage; you can retain multiple different mortgages. However, many landlords appreciate the ease of admin with the one single monthly payment. 

As the name suggests, properties under a portfolio mortgage are managed on the portfolio level rather than as individual assets. Your one lender would have security across all of the rental properties, charges one single monthly payment and manages all fees and transactions pertinent to the portfolio. 

If you already have buy-to-let mortgages on existing properties, you may decide to remortgage them as part of your portfolio, however this is not necessary. You may choose to do so if your introductory period is coming to an end and you will be moved on to your lender’s uncompetitive SVR.

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Frequently Asked Questions

What properties can be financed using a portfolio mortgage?

• Conventional buy-to-let properties
• Properties bought at auction
• Limited company buy-to-lets
• Student property buy-to-lets
• Houses in Multiple Occupation (HMO)
• Multiple flats in one freehold property

Is a Portfolio Landlord the same as a Professional Landlord?

A professional landlord is defined as someone whose main source of income is rent from rental properties, whereas a portfolio landlord is defined as someone with four or more rental properties. The two definitions are not mutually exclusive; often a portfolio landlord will be classed as a professional landlord and vice versa.

Is there a limit to how many landlord mortgages you can have at once?

Whilst there are no legal restrictions on the amount of landlord mortgages you can have, either separately or as part of a portfolio, each lender will have their own criteria and limits. 

How should you prepare for a Portfolio Mortgage appointment?

How should you prepare for a Portfolio Mortgage appointment?

Your portfolio mortgage appointment will have similarities to a conventional buy-to-let mortgage appointment. You will need to provide:

• Personal bank statements
• If a limited company, business bank statements
• Proof of ID 
• Proof of Address
• Proof of Earnings

Additionally, for buy-to-let portfolio lenders you will need to provide:

• A detailed schedule of properties, including but not limited to the current mortgage deals, rental income, addresses
• A thoroughly planned out Business Plan
• Details of Assets and Liabilities

Start your Portfolio Mortgage process with us

As we are not tied to any specific lender, we can make sure that we help you to select the right mortgage for you and your property. Call us for an initial, free of charge consultation.  There is no obligation to use our services and you can meet in one of our offices in Horsham and Southwater, or arrange a phone based appointment.

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Please note: Some forms of BTL mortgages are not regulated by the FCA. YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT