Santander Commercial’s portfolio product, which the broker club helped design, allows landlords with ten or more buy-to-let properties to take out a loan covering multiple properties.
In practice, this means a portfolio landlord with ten properties could buy another two under the mortgage. If he or she then needed to remortgage an existing property, the loan could be expanded to cover all three.
The Buy to Let Business Mortgage Club managing director Ying Tan (pictured) said he aimed to bring a product from the commercial space into the mainstream buy-to-let market: “Over the last few years the market has been very much catering to the amateur landlord. There is only a handful of lenders catering to professionals.”
The umbrella mortgage would allow landlords to streamline repayments, he explained: “Rather than having three or four payments going out to lenders you just have one.”
The loan is available to individuals, partnerships, limited liability partnerships and trading and non-trading limited companies. Rates are negotiable between 2.5% and 4% over three month LIBOR. There is a 0.5% commitment fee, refunded on completion, and a 1.5% arrangement fee, which can be added to the loan.
Borrowers may choose between an interest-only or repayment mortgage – in the former case, the maximum loan-to-value is 60% and in the latter 65%.
The landlord must own a minimum of ten properties, the minimum loan is £500,000 and no single property can be worth less than £75,000.
