Property Portfolio Mortgages

We assist both business owners and investors with Commercial Mortgage advice. Below we explain all the types of variations you might come across as well as information on different ownership types and how this can impact your mortgage options.

We specialise in connecting portfolio landlords with the right mortgages for expanding their property holdings. Our approach involves meticulously analysing your portfolio’s overall gearing and Loan to Value (LTV) to recommend the most cost-effective lending options. We understand that financing for portfolio landlords often requires a more specialised and nuanced approach, especially when adding new properties.

Navigating the complexities of portfolio mortgages demands expert advice, a service we proudly offer. A notable point for portfolio landlords is the stricter lending criteria of many high street banks, which frequently do not lend to applicants with four or more mortgaged properties. This is where our expertise becomes invaluable.

At Mortgage Lane, we cater to a diverse range of investors, leveraging our access to a broad spectrum of lenders, including both high street banks and alternative financing options. Our goal is to find the most suitable lender for your specific requirements, ensuring a smooth and successful expansion of your property portfolio.

At Mortgage Lane, we specialise in facilitating portfolio mortgages for our clients. A portfolio mortgage consolidates multiple properties onto a single mortgage product, using each asset in the portfolio as security for the loan. This approach is particularly beneficial for clients looking to streamline their debts with one lender, which can lead to significant savings on upfront costs such as legal, broker, and valuation fees and some of these products do not charge up front fees.

Portfolio mortgages are often advantageous for larger loan amounts, where we can negotiate bespoke rates with banks. These tailored solutions not only provide potential savings on initial costs but also may offer discounted product options. Additionally, for portfolio landlords with smaller assets, clustering properties together in a portfolio mortgage can help meet minimum loan size requirements, thereby accessing more favourable lending terms.

There are key factors lenders consider with portfolio mortgages, which might include how they treat a mix of asset classes within the same loan.

Mortgage Lane provides comprehensive assistance to clients seeking to transition their property portfolios into a limited company structure, from partnerships to LLPs, or other incorporation forms. When clients opt to use incorporation relief based on tax advice, it’s crucial to inform your broker early in the process. This ensures we can verify with potential lenders that they accept the specific tax methods being used, especially regarding their impact on stamp duty transactions at completion.

Many property portfolio owners are looking to incorporate their properties into a Limited Company, or Limited Liability Partnership to find a better tax solutions against the Clause 24 changes that impacts buy to let landlords.

Given that tax considerations are a legal aspect of these transactions, we strongly recommend seeking guidance from a tax expert. Professional tax advice is essential before committing to any incorporation relief method, to ensure compliance and optimise financial outcomes. Mortgage Lane is dedicated to guiding clients through this intricate process, aligning financial strategies with legal and tax requirements for a seamless incorporation transition

Mortgage Lane assists property portfolio owners in refinancing existing properties, optimising the process to raise funds for new purchases. We focus on finding the best lending solution your portfolio’s current gearing/Loan to Value (LTV) to identify the most financially beneficial refinancing options. Recognising the intricacies of portfolio remortgaging, we offer specialised guidance to navigate this complex area, this might include:

• Whole portfolio remortgage
• Individual mortgages

Sometimes, property portfolio owners where their assets consist of residential buy to lets, it can be efficient to remortgage with one lender as they are of all the same asset class. However, occasionally there might be some semi commercial, or commercial properties owned in the same limited company and in those cases it may be more cost effective to isolate those onto another mortgage to avoid increasing the interest rates and borrowing costs on the Buy to Let properties.

When remortgaging a portfolio it is key to be aware of the set up costs, which include:

• Product fees if applicable
• Legal fees
• Valuation fees
• Broker fees if applicable (we do not charge broker fees for portfolio remortgages)

We deal with fee-free portfolio mortgage lenders, that do not charge product fees, legal fees, or valuation fees and this can considerable reduce your cost of borrowing.

For property portfolio owners who also engage in property development, accessing additional capital efficiently is crucial. A hunting licence offers a flexible financing solution, allowing them to borrow against their existing portfolio. This arrangement typically involves setting up an offset account, where interest is only charged on the borrowed amount at the start of each month.

This method is particularly cost-effective compared to arranging individual finance for each new purchase, as it significantly reduces setup costs. The hunting licence acts as a revolving credit facility, providing portfolio landlords with rapid access to funds up to 75% Loan to Portfolio Value (LTPV). This quick capital availability is especially beneficial for meeting the tight deadlines often associated with traditional property auctions.

Mortgage Lane assists portfolio landlords in setting up hunting licences, ensuring they have the financial agility to capitalise on new opportunities as they arise, without the burden of repeated setup fees.

It is key to understand lending factors with Property Portfolio Mortgages, especially where we are purchasing a property portfolio. There are generally two options when acquiring a property portfolio:

• Purchasing the properties
• Purchasing the company

Both of the above will have their own stamp duty differences, usually with buying shares in a company being lower in cost.

Purchasing the company

We would recommend applicants buying a company owning a property portfolio to do their due diligence on the company and the properties within the entity they are buying for their own piece of mind, but also to provide those items to a portfolio mortgage lender, these due diligence requirements might consist of:

• Valuations to evidence the properties are being sold at market value
• Share purchase agreement
• Financial accounts
• Licences
• Planning confirmations
• Company credit checks
• Rent book and arrears information

We are not able to give tax advice and we recommend borrowers to speak to a qualified tax professional.