How to Buy Multiple Properties With One Mortgage: What Options Are Available to You?

Plenty of Landlords across the UK own property portfolios, as opposed to single assets. This is especially true for those whose only source of income comes from rent-paying tenants, or whose career surrounds the buy-to-let market (BTL).

Many inexperienced property investors, or accidental landlords, will likely start off with just one or two properties. But, given the size of the UK private rental sector (PRS), many could own several dozen homes.

In England alone, there are around 513,000 landlords who have a registered deposit with Tenancy Deposit Protection (TDP) schemes. The latest English Private Landlord survey found there are around 4.7 million households in the PRS. This equates to roughly nine properties per landlord[1].

Having nine BTL mortgages at play could prove to be costly, as well as burdensome. If investors own several properties, or are thinking of expanding into the BTL market, they have probably wondered how to buy multiple properties with one mortgage. They may even be wondering if it’s even possible.

To help borrowers, we’ve put this blog together which breaks down the options available, how specialist finance could help, and what they need to do to get the ball rolling.

Are there even products out there for this?

What BTL investors are after is what is commonly referred to as multiple property mortgages. They’re also frequently known as portfolio mortgages, or BTL portfolio mortgages. These are often single, first charge mortgages, secured against multiple BTL properties.

But, knowing what they’re called does not necessarily make answering the question of how to buy multiple properties with one mortgage any easier. A BTL portfolio mortgage is not a specific product. Rather, it’s a term of reference used by lenders for landlords who (usually) have at least four[2] mortgages on rental properties, and are looking to borrow to expand further.

Individual mortgage products may be available to these landlords, which allows them to combine some or all of their BTL assets under one umbrella. Borrowers may opt to have a (typically) large mortgage that covers all their investments, leaving them with a single obligation, rather than multiple.

How do multiple property mortgages differ from standard mortgages?

Generally, availability and eligibility for portfolio mortgages will vary between lenders. But, where they are found, they’ll likely be more expensive than their “regular” counterparts – reflecting the added complexity. This may involve higher rates, along with shorter terms, and higher minimum loan amounts.

What’s more, to qualify for a multiple property mortgage, borrowers may need to evidence affordability with rental forecasts for the properties they’re buying/incorporating. Some lenders will want to see a rental forecast amounting to at least 125% of the total mortgage payments. Others may have a minimum of 150%[3]. Approved letting agents might need to conduct rental projections, adding to the costs and admin.

But, portfolio mortgages do offer several advantages for landlords. Having a single mortgage to cover may prove easier than dealing with multiple. This may involve lower legal costs, and the lender will likely view the properties collectively. Meaning, if one doesn’t pass a rigid rental calculation, others in the portfolio could make up the shortfall.

What about the specifics – maximum number of properties, the types of assets allowed, maximum loan amounts?

There are many variables to consider when asking how to buy multiple properties with one mortgage. Ultimately, lenders affect these variables themselves. Some may choose to place a limit on how many properties can be incorporated into a portfolio mortgage. There will also be variations in the minimum and maximum loan amounts.

Borrowers will likely face rigid criteria on the high street for a multiple property mortgage. In recent years, it was likely difficult to attain one of these mortgages as the mainstream lenders withdrew products, and hesitancy prevailed in the market[4].

Fortunately, the market has recovered from the 2022 mini-budget, and there are a record number mortgage products available in the current market[5]. The parameters of these mortgages will vary between lenders, however. While there is no formal or legal limit on how many properties can be on one mortgage, lenders may have their own limits in place. Some may have a maximum of five, while others could go up to 20 or more[6].

Similar limitations may be in place with asset types. Some lenders may not be willing to work with holiday-lets or mixed-use properties, for example. Also, lenders could place limitations on loan sizes for multiple property mortgages.

How quickly could I get a multiple property mortgage?

Ultimately, borrowers will need to decide if a portfolio mortgage is right for them. They will need to weigh up the pros and cons, and think about their long-term investment goals.

If they do want to move ahead, and they find an option that matches their requirements, they’ll need to remember the elements that are outside of their control. Chiefly, this concerns speed. Again, how quickly they’ll receive funding will vary from lender to lender, but multiple property mortgages will likely face longer turnaround times.

In the current market, property investments in their entirety have slowed right down. The average timescale for a mortgage according to USwitch, where everything runs smoothly, sits between two and six weeks[7].

However, analysis from pilotfish Finance[8], it can take four to five months on average for a portfolio mortgage to complete. As to be expected, the timeframes involved are affected by the size of the underlying portfolio. More properties will result in additional valuations and underwriting hours.

How to get started, and can specialist finance help?

Borrowers will need to evaluate their options but with a potentially limited selection, they may want to work with a broker. Mortgage brokers will be familiar with the market. They’ll know where to look to find more niche products. They may even have exclusive access to certain mortgages which are not available to direct borrowers.

Borrowers may also find more optionality with specialist finance. Where mainstream lenders withdraw from the more complicated corners of the market, bespoke providers could pick up the slack.

At Market Financial Solutions, we have no problem working with those with large portfolios, or who wish to consolidate their assets. We’re happy to have multiple properties on a single solution, and this isn’t exclusive to standard flats or houses either.

Our loans can be spread across no room limit HMOs, MUFBs of up to 30 units, and holiday lets. And where everything lines up, we can deliver funding in as little as a few days from the initial enquiry.

We understand the challenges borrowers are facing in the current market. We know costs are rising, and that it’s becoming difficult to manage a portfolio of properties. We’re here to help property investors minimise these stresses in any way we can. We can help borrowers find out how they can buy multiple properties with one mortgage.