Your essential guide to portfolio mortgages

If you’re a landlord looking to grow your portfolio of properties or you’re already trying to juggle several buy to let mortgages for your properties, a portfolio mortgage could make your life a whole lot easier.

Portfolio buy to let mortgages can help to simplify the process of buying multiple rental properties. Potentially making you more tax efficient and boosting your buying power to continue to grow your portfolio.

What is a portfolio buy to let mortgage?

Property portfolio mortgages offer a single mortgage to cover all your buy to let properties.

All your properties are covered with just one mortgage, one lender, and one monthly payment.

Taking away the hassle of trying to manage different rates and multiple monthly payments.

How do I know if I need a portfolio mortgage?

From a lender’s perspective 4 or more mortgaged properties is considered a portfolio. And this is the minimum you’ll need to get a portfolio buy to let mortgage.

Lenders often require a minimum portfolio value of £500,000. And having 5 or more properties in your portfolio is often considered best to benefit from any financial rewards.

There is no strict maximum number of properties, and each mortgage is based on individual circumstances with stricter affordability tests than regular buy to let mortgages.

What are the benefits of a portfolio mortgage for landlords?

Well aside from the simplicity of managing just one mortgage account. There can be financial benefits too.

By taking on a single portfolio mortgage your properties and their finances will be managed as a limited company.

As recent changes have reduced the tax relief that landlords can claim, (for example mortgage interest can no longer be offset as an expense). And with corporation tax remaining at 19% for annual profits, moving your portfolio to one mortgage could be financially beneficial.

How can I find the best rates for a portfolio mortgage?

Rates are often higher than traditional buy to let mortgages as the risk is higher when lending to a limited company. But as portfolio mortgages are becoming a more common option there are more competitive rates cropping up.

As a portfolio buy to let mortgage is classed as a specialist product you should seek financial advice from an experienced mortgage broker (like us!) to help.

Working with a broker not only helps you to discover what suits you best but helps to smooth out and speed up the process too.

And that means you can concentrate on finding your next property for your growing portfolio and enjoy more time to reap the rewards of your investments.

Give our specialist mortgage advisors a call on 0333 005 0333 and in a 15 min discovery call we can help guide you towards the products best suited for your circumstances. Alternatively, please text ADVICE to 82228.

Your home may be repossessed if you do not keep up your mortgage repayments.

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