How To Get Multiple Mortgages For Investment Properties

Landlords with property portfolio ambitions often need more than one mortgage to make this possible. So, assuming your landlord registration and licensing requirements are in place, here’s how to secure buy-to-let mortgages for multiple properties in five easy steps…

1. Decide whether you actually need more than one mortgage

Once you’ve identified the properties you’re hoping to invest in, you’ll need to decide whether putting a buy-to-let mortgage on each is better than a single mortgage for the whole lot. Portfolio mortgages are sometimes available for landlords with a collection of properties, allowing them to take out a single loan for multiple premises.

You’ll need at least four investment properties to qualify for a portfolio mortgage, so if you’ve got three or fewer, you’d need to look at other types of finance.

One of the main benefits of having a portfolio mortgage is that you only need to make a single monthly payment for all of your properties, and they appear on one statement. This means less hassle and admin legwork, but the key question you need to ask is whether it’s more cost-effective to have a portfolio mortgage versus multiple separate mortgages.

2. Find the right mortgage lender

This is vital as you don’t want to fall afoul of the cap some lenders have on the number of buy-to-let mortgages they’re willing to offer to one borrower. Some will only let you take out one or two, while others might agree to a higher number or no limit.

Moreover, if a portfolio mortgage is the right option for you, you’ll need to find a buy-to-let mortgage lender who is best placed to offer you one. Not all mortgage providers will consider them, and the interest rates can vary.

A mortgage broker specialising in buy-to-let mortgages will be able to help you find a lender whose limits on this won’t impact your portfolio plans.

3. Prove the rental potential

To qualify for multiple buy-to-let mortgages, you must have enough deposit for each mortgage and be able to evidence affordability with rental forecasts for the properties you’re hoping to buy. Some lenders will need the overall rental forecast to amount to at least 125% of the total mortgage payments, while others might request up to 150%.

To get an official rental projection for your properties, you must find a letting agent approved by the Association of Residential Letting Agents (ARLA).

4. Get your documents and credit reports ready

Before you approach any lenders, having all the paperwork you’ll need to hand in is a good idea, as this could help you save time on your application. In addition to rental projection documentation, you’ll need other documents, including proof of deposit, a mortgage statement for your residential home, and evidence of your income.

Downloading your credit reports will allow you to optimise them before the application. Be sure to challenge any inaccuracies and request that any outdated information be removed. Small changes like this could help you secure a better interest rate.

5. Apply!

Once you’ve chosen your properties, evidenced their rental potential and got your documents together, it’s time to apply for the necessary finance. Some landlords apply for agreements in principle before making a complete application to see whether they will likely be approved for the mortgages they need and what terms the lender will offer.

A mortgage broker specialising in buy-to-let can help you choose the right finance for your portfolio and guide you through the application process.