Portfolio lenders tend to be small, community-based banks that grant loans for multiple buy-to-let mortgages. They maintain the loans using their own money and therefore assume more risk than your traditional lender.
Portfolio mortgage lenders service your loan themselves and do not sell your loan on to the secondary market. They make their money from mortgage origination and profit from the difference in interest rates between assets and their mortgage portfolio.
If you are a professional landlord with four or more buy-to-let properties, then you're eligible for a portfolio loan.
We support many professional landlords and specialise in large, multiple property transactions, where portfolios of more than 40 properties are not uncommon. If this applies to you, a portfolio loan might work for you in many ways.
Portfolio loans are often more flexible and offer more options than traditional loans. This includes repayment planning (for example, smaller down payments) and consideration towards the landlord's specific financial circumstance.
Portfolio lenders are not required to adhere to certain guidelines that the secondary market has established. This means that the lender can consider approving loans to those who may not meet specific criteria otherwise.
Often community-focused, lenders are better placed to consider approval on an application by application basis. This allows them to take personal circumstances and relationships into account.
Property investors generally favour these types of loans as there is usually no restriction on the portfolio's number of properties.
There is also no regulation in terms of the property's condition to qualify, meaning this type of loan is particularly beneficial for investors who want to buy property for renovation.
As with any loan, it takes time and patience to find the right lender that meets your needs. It involves scouring the internet and speaking directly to multiple loan suppliers. The Lending Channel is here to do the hard work for you.
Unlike many other brokers, we deal with a wide range of different mortgage types. This gives us a unique vantage point within the market and puts ut in the best best place to easily pinpoint what kind of loan will best meet your specific requirements.
With over a decade of years of experience under our belt, we pride ourselves on our ability to identify your needs quickly. From there, we use our expert market knowledge to scout out the best lending options for you efficiently.
After we have supplied you with a solution, we may charge a fee for our service. However, this isn't always the case. It depends on the kind of facility you apply for and the solution you receive.
We work on a free, no-obligation basis. We never charge you hidden fees and will always be upfront about any costs you might incur on specific products before committing to any step. To talk through your particular situation and gain insight into possible solutions, give us a call today.