Buy-To-Let Portfolio Building Finance

One of the key factors in property investment is being able to buy properties, or develop the ones you have, when the time is right. However, the right moment for the market is not always the best time for your capital reserves.
If you are an experienced landlord or investor with a significant or mature buy-to-let portfolio which is not highly geared there are some further, excellent ways to free up cash. You will need to be sure that any mortgages on your properties are not “locked in” with current lenders to be eligible. For alternative methods of funding here are a few ideas:-

Portfolio and trading, draw down and equity release facilities

These are specifically geared to meet the needs of developers and investors – especially those wishing to build up a property portfolio. These schemes allow you to free up cash at short notice giving you flexibility to achieve purchases quickly and easily. All of them entail pooling the equity in your current portfolio. They bring two main benefits:-

1. With a pre agreed facility you need only have the one arrangement, thus avoiding the expensive and time consuming activities of arranging a bridging loan followed by a mortgage.
2. You can also drawdown additional finance against increases via open market values, planning gains or finished refurbishments. These give you greater strategic flexibility, allowing you to purchase new properties quickly and easily.

Loan to valuations are usually around 80% and you should expect to pay from bank base interest rate plus 1.5% - although different lenders’ rates vary.

Further pre agreed facilities are available which will deliver funds quickly, usually within 5 to 10 days - about the same amount of time as a fast bridging loan. These are portfolio and trading, drawdown and equity release facilities. All these solutions revolve around pooling the equity in your current portfolio and allow you to borrow swiftly and simply at a pre-agreed rate.

You can drawdown additional finance against increases via open market values, planning gains or finished refurbishments. These give you greater strategic flexibility allowing you to purchase new properties quickly and easily without having to arrange a bridging loan and a mortgage. Loan to valuations are usually around 80%.

Expect to pay from bank base interest rate plus 1.5%

If you are just starting out as a Buy To Let investor see our Hints and Tips page for potential low cost investment strategies Click Here.