Refinance for Buy to Let Portfolios

15th June 2021
Posted by: DMM
Categories:

Professional landlords have had enough to contend with in recent years, however, we can help with finding competitive buy to let mortgages or refinance for buy to let portfolios.

What are Buy to Let Mortgages?

A buy to let mortgage is an investment loan designed for property professionals buying a property to rent out, rather than to live in themselves. There are a wide range of buy to let mortgages available but many investors will take an interest only type where the rental income covers the monthly payments. The capital debt will be repaid at the end of the loan term from the refinancing of the property or sale.

If you have more than four investment properties already, then this is technically know as a portfolio and we can help you streamline your investment for ease of management and finetuning costs.

Refinancing Buy to Let portfolios – 4 – 15 properties

For landlords that have four or more properties there are lenders that will refinance buy to let portfolios into one product. Whilst being streamlined management it does not mean any lack of flexibility as lenders will allow property investments to be added or removed from the portfolio.

Refinance for buy to let portfolios can provide up to £5 million loans for up to 15 properties, up to a gross debt to value of 70% and up to a 10 year term.

Lending Criteria

Buy to let portfolio funding is available for limited companies, LLP’s, partnerships and sole traders too
Minimum loan size of £500,000
Max Gross Loan to Value <70%
Max term 10 years
Interest only options
Secured by first charge over freehold or leasehold property
Interest rates from 3.55% and fees from 1.5%
Minimum Gross Interest Cover Ratio – 1.6x
For Portfolios in England, Scotland and Wales

“Our team can assist across a broad range of investment property types and sectors to develop a structured loan to suit your investments”

Larger Investors or Non-Standard Assets

We can also assist investors that have large portfolios with bespoke solutions. Our team can assist across a broad range of investment property types and sectors to develop a structured loan to suit your investments. Such large complex portfolios can include 15 units or more, mixed use property types (with up to 25% commercial assets), HMO’s with up to 6 bedrooms and multi-unit blocks.

Lending Criteria

Loans from £1 million to £45 million
Terms up to 10 years
Minimum Net Interest Ratio Cover Test – 1.25x
Max Loan to Value up to 65%
5 Year Fixed Interest Rates from 3.55%
For Portfolios in England, Scotland and Wales

Developer Money Market can assist with refinance for buy to let portfolios and provide bespoke solutions to suit your investments. If you have more than four mortgaged property investments, then it is classed as a portfolio.