It would be fair to describe the Buy-To-Let market in the UK to be experiencing a kind of resurgence of types. Landlords and investors, at one point, were considering pulling away from the buy-to-let market in large numbers, however, that seems to have changed markedly in recent years.
Despite a pandemic economy and a recession in 2020, the market rebounded to grow significantly throughout the year and beyond, and this has once again attracted landlords and investors back into the market.
It’s also thanks, in many ways, to the government making UK property a central plank of their economic strategy throughout the year which has meant that tax breaks, economic policy and focus have allowed things to flourish, with prices, rents and demand all growing along with yields too.
With that in mind, many landlords have actually been growing their property or investment portfolio over these past 12 months, and that’s meant that we’ve been getting a lot of queries about mortgage options for multiple properties, so we’ve put together a short guide for Buy To Let portfolio mortgages.
What is portfolio finance?
As opposed to a singular buy to let mortgage, this type of mortgage finance allows you to cover all of your properties if you have multiple investment properties. Rather than, say, having three different mortgages on three different properties with three different providers, you would bring them all under one umbrella, with one payment and one provider.
There are obvious advantages to this type of buy to let mortgage arrangement, rather than having multiple arrangements, and the main one is that it makes things much easier in terms of admin and organisation.
The portfolio of investment properties needs to be registered as a limited company and finances and accounts are filed as they would be with any other business. As a property investment company, a buy to let mortgage provider would expect a landlord to have a minimum of four properties to be eligible for a portfolio buy-to-let mortgage.