Portfolio finance for landlords

Buy-to-let mortgages are structured differently from residential loans. They're usually interest-only, require a larger deposit — typically 25% or more — and the lender sizes the loan on the rental income the property will generate rather than your salary alone.

Most BTL lenders require the rent to cover the mortgage interest by a margin — commonly 125% to 145% — at a notional or actual interest rate. We'll model the rental coverage so you know the maximum loan before you view.

Interest-only means lower monthly payments, but you'll need a plan to repay the capital at the end of the term — whether by selling, remortgaging, or repaying from other funds.

Lenders look at the rental income, your wider income, your experience as a landlord, and the property type. First-time landlords face a smaller lender pool, but we know which lenders will take you on.

Portfolio landlords — typically those with four or more mortgaged properties — face additional affordability checks across the whole portfolio. We'll prepare the figures so the lender sees a clear picture.

Property type matters too: houses in multiple occupation (HMOs), multi-unit freehold blocks and commercial-with-residential mix need specialist lenders, which we can access.

Buy-to-let purchases usually attract a stamp duty surcharge on top of standard stamp duty, and mortgage interest tax relief has been restricted for individual landlords — making the structure of ownership important.

Many landlords now hold property through a limited company (a 'special purpose vehicle'), which can restore full mortgage interest relief and improve after-tax returns — though it carries its own accounting and mortgage considerations.

We work alongside your accountant to make sure the mortgage fits your tax structure, not the other way round. We're not tax advisers, but we know which lenders lend to limited companies and SPVs.

If you're building a portfolio, the structure of each mortgage affects the next: how you're assessed, how much you can borrow, and which lenders will accept your portfolio profile.

We help landlords plan the sequence — which property to finance on what basis, when to use a limited company, and when to remortgage existing properties to release deposits for the next purchase.

For portfolio landlords, we maintain a clear picture of your holdings so each new application is ready to go, with the rental and affordability figures the lender needs.