Compare Portfolio Landlord Mortgages

A portfolio mortgage is a type of mortgage that’s specifically for portfolio landlords, allowing them to place all their buy-to-let properties and first charges on these properties under just one portfolio mortgage with one lender, rather than having multiple buy-to-let mortgages across different lenders. A portfolio mortgage can make managing your properties easier as only a single monthly payment is required and you only have to communicate with one lender.

Portfolio mortgages sit in-between buy-to-let mortgages and commercial mortgages. They’re almost always interest-only like normal buy-to-let mortgages.

The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.

What Is a Portfolio Landlord?

A portfolio landlord is someone with 4 or more buy-to-let properties, including those owned private or through a limited company. This also applies to sole and joint applications.

You don’t always need a portfolio mortgage when you own 4 or more rental properties but it can be valuable for landlords who want to benefit from the flexibility that comes with having one lender for all your transactions.

We’re a specialist mortgage broker with experience arranging all kinds of landlord mortgages. See below to compare rates and find out how we can help you.

A landlord’s portfolio can include many different types of mortgages across their many different properties. 

As a portfolio landlord, you could have:

• Individual property mortgages - these are standard mortgages taken out for each individual property within a landlord’s portfolio, such as a buy-to-let mortgage on a rental property
• Limited company mortgages - a limited company mortgage allows investors to finance properties held within the limited company
• Portfolio buy-to-let mortgages - these allow you to have multiple buy-to-let properties and limited company buy-to-let properties under one lender, sometimes all on one mortgage. This can give you ease and flexibility with your portfolio finances

The terms and availability of these mortgages vary depending on the specific lender, the size of your property portfolio and the types of properties you own.

If you’re looking at a mixture of residential and commercial properties, then you may require a commercial mortgage.

A portfolio mortgage works in the same way as a normal buy-to-let mortgage.

They’re both:

• Secured on rental properties
• Typically interest-only

The main differences are:

• With a portfolio mortgage, your properties are managed on a portfolio level rather than an individual asset level. You have one lender that has security across all your rental properties, charges you one monthly payment for all your properties and manages any fees and transactions that cover the whole portfolio
• With a normal buy-to-let mortgage, you have a single buy-to-let mortgage often - but not necessarily always - with a different lender on each rental property. That means that your properties are managed at asset level and you have to communicate with different lenders for each transaction

If you already have buy-to-let mortgages on existing properties, you could choose to remortgage them onto a portfolio product but you wouldn't need to unless your introductory period was due to end and you didn’t want to go onto your lender’s SVR (standard variable rate).

You can have 4 - 100+ properties with portfolio products. If you wanted a few hundred plus properties than it's worth talking to your broker about diversifying the lender mix.

Portfolio products can be used to finance the following:

• Normal buy-to-let properties
• Limited company buy-to-lets – this would require a limited company portfolio mortgage
• Auction properties
• Student buy-to-lets
• Multiple flats under one freehold
• HMO (Houses in Multiple Occupation) - HMO mortgages are available as a standalone mortgage product if you don't have a portfolio of 4 or properties

A portfolio mortgage offers landlords several benefits, including the following.

Simplifies Your Property Finances

Rather than dealing with separate lenders and various mortgage applications, you have one lender and potentially all your properties under one mortgage. This can make it much easier to track payments, manage your finances, and monitor the performance of your portfolio.

Potential Cost Savings

You may be offered lower interest rates for a portfolio mortgage(s) with one lender compared to taking out separate mortgages with different lenders for each individual property. This can potentially lower the costs of your overall borrowing.

Boost Your Borrowing Power and Balance Your Portfolio

Portfolio mortgage lenders can look at your overall portfolio, as opposed to judging each property on individual merits. This means your high yielding properties can boost your overall borrowing potential and help you secure a better deal on a low yielding property, as the risk for the lender is spread out across your portfolio, not on an individual basis.