Portfolio Landlord Mortgages
Just because your property portfolio is growing, doesn’t mean your mortgage payments have to.
A portfolio landlord mortgage allows you to place all of your Buy To Let Mortgages under one mortgage, so that, rather than having separate mortgage lenders for each property, your whole portfolio is looked after by one mortgage lender, requiring one monthly payment. A Portfolio Landlord Mortgage not only simplifies your monthly mortgage repayments, but can be a far more tax-efficient option, as well as allowing you to use equity to grow your property portfolio faster. When handled by portfolio mortgage experts such as Avail Mortgages, you can be certain that your property is in safe hands, and that you’ll be shown a fantastic range of mortgage deals.
From normal buy to let property, limited company buy to let property and auction property all the way through to student buy to lets, flats and HMO’s, our Portfolio Mortgages can be used for them all. We have extensive experience with property portfolios, and when combined with our knowledge of the mortgage market, can ensure we find the right Portfolio Landlord Mortgage for you. We don’t sweep great mortgage deals under the rug. We don’t close the door in your face when you need mortgage advice. With a supportive attitude and the willingness to always go above and beyond, Avail Mortgage Brokers will always welcome you in.
Our client testimonials speak for themselves, and we take pride in the mortgage guidance we provide. Therefore, if you’re looking for a Portfolio Landlord Mortgage for your entire portfolio in areas such as Leeds, Huddersfield, Bradford, York or Harrogate, we encourage you to get in touch with us today.
What Is A Portfolio Landlord Mortgage?
A Portfolio Landlord Mortgage – also known as a Buy To Let Portfolio Mortgage – is a type of mortgage aimed at portfolio landlords. You’re considered a portfolio landlord if you have 4 or more mortgaged rental properties, such as those owned in your name, or through a limited company. If you have 3 or less mortgaged rental properties, then you’re classified as a private landlord, and simply require Buy To Let mortgages or Limited Company Buy To Let Mortgages.
Portfolio Landlord Criteria For Portfolio Landlord Mortgages:
- We’ll need to conduct a portfolio assessment, and be provided information such as the value of your mortgaged properties, monthly mortgage repayments, monthly rental amounts and estimated property values from your existing portfolio.
- Portfolio landlords must have acquired their first buy to let property more than 24 months before the current mortgage application. No more than 3 properties (prior to the current full mortgage application) should have been added to your property portfolio within the last 12 months.
- Though this varies between mortgage lenders, the minimum Interest Coverage Ratio (ICR) across the whole portfolio, including properties mortgaged with other mortgage lenders, should be 125% (based on a reference rate currently of 5.5%). The ICR is the minimum interest coverage ratio between the expected rental portfolio income of the property and a notional interest rate, also known as the ‘’stress test’’.
- Similarly, the Loan To Value (LTV) varies between mortgage lenders, but typically should be a maximum of 65-75% across the whole property portfolio. The LTV is the ratio between the mortgage amount and the value of your properties.
How Does A Portfolio Landlord Mortgage Work?
A Portfolio Landlord Mortgage works in the same way as a Buy To Let Mortgage, in the sense that they are both secured on rental property, typically interest only mortgages, and are formulated on the basis of one mortgage per property (rather than one mortgage across the whole portfolio). You will need portfolio loans when you reach 4 or more properties. This Portfolio Mortgage would go on your 4th property, then every rental property after your 4th would require a new portfolio mortgage. You can have 4 – 100s of properties with Portfolio Mortgages.
Here at Avail Mortgages, our mortgage brokers and mortgage advisers will help you to secure the best interest only mortgage for your property portfolio – whether that includes flats, houses, investment property or company property. But what exactly are interest only mortgages? An interest only mortgage allows you to pay just the interest charged each month for the term of the loan. You don’t have to repay the amount you’ve borrowed until the end of the mortgage term. This means your payments will be less than on a repayment mortgage, but at the end of the term you’ll still owe the original amount you borrowed from the mortgage lender.
When it comes to interest only mortgages, as with repayment mortgages, you also need to choose the interest rate – whether that’s a fixed rate mortgage or a variable rate mortgage.
Fixed Rate Mortgages
A fixed rate mortgage ensures that your monthly mortgage interest payments will stay the same for the full mortgage term. You’ll always know in advance how much you need to pay back each month, meaning you can promise your tenants that their rent won’t rise.
Variable Rate Mortgages
A variable rate mortgage means that the interest rate you pay is dependent on the Bank of England’s base rate. For example, if the interest rate increases or decreases, so too does the amount of interest you pay back that month. Variable rate mortgages include tracker mortgages, discount mortgages and capped rates mortgages, and our mortgage advisers can help you choose between these variable rate mortgages, and help you find the best deal for your mortgage.
Need a Portfolio Landlord Mortgage for that great investment property you can’t get out of your head? Our portfolio landlord team helps portfolio landlords and portfolio companies across Leeds and the surrounding areas including Huddersfield, Bradford, York and Harrogate, so are certain our mortgage advisers and mortgage brokers can help you too. Please contact us today to discover our Portfolio Landlord Mortgage deals today.
Get In Touch
Portfolio Mortgages can help expand your property portfolio, while benefiting from easier repayments and better interest rates, which can reduce financial stresses. Our portfolio mortgage brokers can point you in the right direction with your mortgage application, and will source the best live rates and mortgage deals for your property business. Therefore, if you’re looking for a Portfolio Landlord Mortgage in Leeds or the surrounding areas including York, Bradford, Harrogate and Huddersfield, then we’d love to hear from you, and would love to help.