You are here: Home - News -

My client has been building a property portfolio. His outstanding buy-to-let mortgages are approaching £1m. What product options are open to him?

  • 26/02/2002
  • 0
The growth in the buy-to-let market has meant there are increasing numbers of individuals following ...

The growth in the buy-to-let market has meant there are increasing numbers of individuals following a deliberate policy of building property portfolios, principally as a supplement to traditional pension provision. It does not require the purchase of a particularly large number of properties before total mortgage commitments begin to approach £1m and so it is essential all their mortgage costs are kept under review by taking advantage of remortgage opportunities across a variety of lenders.

Most high street lenders cap their buy-to-let lending to individuals at £500,000, but below this level many will have well-priced fixed, discount and tracker rates available. To find lending above this level it is necessary to go to the specialist market and even here the choice reduces dramatically above £1m. Two lenders whose published criteria clearly place them in this market are Paragon Mortgages and The Mortgage Business.

Paragon will lend up to 75% loan to value to £2m on an unlimited number of properties. Pricing will be based on a Libor tracker, although sometimes there are fixed rates available.

The Mortgage Business will lend up to 85% loan to value to £2.5m on their Ten-to-Let scheme. The maximum exposure on each property will be £250,000 and the pricing will be set at 2% above bank base rate.

One of the key strengths of Paragon is its acceptance of limited companies as the vehicle for the transaction, which enables property investors to manage their tax position more effectively ‘ something that will be important with £1m of lending secured on assets of £1.5m or more. This limited company facility is being actively considered by a number of lenders in response to the demand for portfolio finance.

Stuart Johnson


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Raising the roof

Remortgaging may still be the word on everyone's lips, but if homeowners want to raise finance it is worth considering...