Portfolio Finance

A Portfolio Finance (or Facility) is a single loan secured against a portfolio of residential properties. This is a valuable tool for buy to let landlords as it gives them the ability to expand their portfolios without having to search for new finance options each time they find a suitable property to buy.

Portfolio finance [BUY]

Why choose Smartlandlord®?

Key features

FAQ

Q. Are Portfolio Finance / Facility rates fixed?
A. No. Portfolio Facilities are tailored to individual investors and are underwritten by lenders using the same process as a Commercial Investment Loan which is completely different to a Buy to Let Mortgage.

Q. What are the benefits of Portfolio Finance?
A. With Portfolio Finance a high yielding property can compensate for a low yielding property to unlock equity which has been trapped whilst an individual Buy to Let Mortgage has to be underwritten against the low yielding rental income.

Q. What is a 'Hunting Licence'?
A. A Hunting Licence is a pre-approved loan set at a pre-agreed loan to value covenant for the purpose of buying new residential investment properties.

Q. What is a 'Drawdown Facility'?
A. When a Portfolio Finance / Facility is set up if the existing mortgages are refinanced and replaced by one loan, the difference between the combined mortgages and the Loan to Value covenant is called the Drawdown Facility.

Useful links

Which? http://www.which.co.uk/advice/can-you-profit-from-buy-to-let/index.jsp

Houses in Multiple Occupation http://www.communities.gov.uk/housing/rentingandletting/privaterenting/housesmultiple/

Council of Mortgage Lenders http://www.cml.org.uk/cml/home

Tips and advice

Dos and Don'ts

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