One mortgage for all BTL properties?

by Readers Question

9:16 AM, 18th March 2019
About 2 years ago

One mortgage for all BTL properties?

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One mortgage for all BTL properties?

I am trying to help a friend who has 4 BTL properties all owned as an individual (rather than as a company). At present each property has a mortgage ( across the portfolio the LTV is approx 35%).

Not looking to take out any additional lending but the endless new mortgage arrangement / booking fees/ valuation fees for a fixed period are a drag and are really adding up.

So my question is it possible to have one mortgage or loan secured against all the properties? Or is the only way to do this by incorporating the properties and getting a commercial loan.

Any help much appreciated.

Louise



Comments

Neil Patterson

9:24 AM, 18th March 2019
About 2 years ago

Portfolio BTL mortgages had some popularity in the right circumstances pre-credit crunch most notably with TMW. They did have some convenience and ease advantages of spreading the LTV eg. you can have one LTV higher offset by another lower.

However it is when things change in criteria or the market that having all your eggs in one basket can be an issue.

Post crunch many landlords had issues with extracting individual properties from a single portfolio mortgage due to reduced values and lower LTV criterias.

You can have a commercial loan secured over the whole portfolio with the properties being owned by a limited company, but for the average BTL investor this option has become much less popular.

Howard Reuben CeMap CeRER

10:29 AM, 18th March 2019
About 2 years ago

I agree with Neil, however this is still available. I am currently arranging 77 properties / mortgages for one Client in one loan and for another Client, over 300+ properties / mortgages in to one arrangement too.

Whether this is right for you is based on your business management, strategy, future flexibility requirements and many other commercial factors.

Whether you are a first time landlord with aspirations to buy more, or an experienced landlord with 6, 10, 100, or more properties, the mortgage structure can be made to suit you.

My Team of specialist BTL mortgage brokers is here to help.

Simon M

17:12 PM, 18th March 2019
About 2 years ago

If their own home is mortgage-free or also has a low LTV, they might increase this mortgage, an use proceeds to pay off 1 or more of the others. As well as reduced fees, lower rates tend to be available. As Neil has said, it's important to have keep some flexibility in case things change, and a single mortgage would be putting all your eggs in one basket.


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