A portfolio mortgage is a specialised loan option secured against a diverse range of properties within a single portfolio. This guide explores eligibility criteria, borrowing potential, interest rates, and the overall process to help you navigate this financing option effectively.

What is a Portfolio Mortgage?

A portfolio mortgage is a specialist loan secured against multiple properties within a portfolio. Lenders will cross-collateralise security taking one charge across multiple properties. This reduces a lender’s overall risk and allows for more favourable interest rates to be achieved by the borrower.

What assets can be held under a portfolio mortgage?

Most types of assets can be included within a portfolio mortgage including residential property, commercial property, and semi-commercial property.

Who qualifies for a portfolio mortgage?

Portfolio mortgages are available to all portfolio landlords who own at least three properties and are subject to income, location and property type.

How much can I borrow?

There is no maximum amount of lending with portfolio mortgages. The right lender is very much determined by your portfolio, the type of properties held and their location. Your broker will be able to find the right lender for your circumstances.

What loan to value can I borrow?

You can borrow up to 80% LTV against residential assets in the portfolio. However, if you have commercial or semi-commercial properties within the portfolio this may be lowered to 65-75% LTV.

How much does it cost?

If the assets are owned in a personal name rate start from 1.8% P/A. If the assets are owned in a limited company, rates start at 2.5% P/A.

How long does it take for a portfolio mortgage to complete?

On average 4 to 5 months. Completion timeframes are determined by the size of the portfolio, the larger the portfolio, the more time is needed for additional valuations and underwriting hours.

Can I get 100% finance?

100% finance isn’t possible, unless the value of your assets has increased due to market changes, meaning that 75% of the market value is equal to the original purchase price.