The private rental sector is going from strength to strength as more people look to rent long term. And with no sign of things slowing, the demand for rental accommodation has been great news for private and professional landlords.
Record low mortgage interest rates, high rental yields and an uncompetitive housing market. Three factors which mean this is the perfect time for landlords to expand their property portfolios.
As a Buy to let portfolio grows, it is quite likely BTL mortgages will be spread over different lenders as new products come to the market. This can make keeping track of mortgages, accounts and payments difficult and time consuming. That’s why we can now arrange BTL portfolio mortgages.
For some landlords, a BTL portfolio mortgage can be very advantageous, however, this may not apply to everyone.
We have listed a few of the pro’s and con’s to BTL portfolio mortgages. To help you decide if this is the right choice for you.
- By combining all BTL mortgages in one BTL portfolio mortgage, only one account needs managing. So there is only one monthly payment, one mortgage statement and one set of interest charges. It will cover all the properties in the portfolio and if you wish to add or remove a property, no remortgage is needed.
- Each case is looked at individually. But as a lender would assess the LTV and rental serviceability over the entire portfolio, instead of just one property, higher yielding properties may help to obtain a high loan amount.
- Interest rates are higher for Portfolio mortgages as they are only available from commercial lenders. The last few years has seen a change in the way main stream BTL lenders operate and they no longer lend on portfolio mortgages.
- Some articles on the internet suggest it is advantageous from a tax point of view, to obtain a buy to let portfolio mortgage. However, this is for your accountant to decide as every portfolio is different and each case is decided upon its own merits.