Most investors have never been offered this.
A facility secured across the whole portfolio and drawn as you need it, instead of borrowed in one lump against one property. The equity is already there. This makes it available.
Very few lending partners still write it. It was more common once. It is not now, so most portfolio landlords have never had it put in front of them.
How it works
The properties are valued together, not one at a time. A facility is set against that combined value, less what is already secured.
That £300,000 sits there. You draw it when a purchase comes up, and you are not paying for it while it is undrawn.
What it is for
Having the money in place before you need it, not chasing it once you have found something.
At auction that is the difference between bidding and watching. On a private deal it is the difference between being taken seriously and being one of three people who said they were interested.
One lending partner described it as a property hunting licence. That is close to what it does.
The numbers
- Minimum equity
£250,000 across the portfolio.
- Facility limit
Up to 70% of combined value, less existing borrowing.
- Drawdown
As required, no restriction on use.
- Security
Charges across the portfolio.
- Borrower
A company you already have, or one set up for the purchase. What the money is for decides the case, not the wrapper.
Larger portfolios can be structured bespoke. Terms are set by the lending partner and confirmed after valuation.
Availability depends on the portfolio and on which lending partner has appetite at the time. Meeting the numbers above does not guarantee a facility is available, and we will tell you early if it is not.
Why not just remortgage?
It is the first thing most people compare this to, and on the rate alone the numbers look good.
A remortgage gives you the money once. You have it, you spend it, and when the next opportunity comes round you start the whole process again.
A portfolio facility stays in place. Draw it, use it, pay it back, draw it again. The equity does not have to be released in one go to be useful, and it is there on the day you need it rather than six weeks after.
There are also tax and structuring questions in where the borrowing sits and how the money reaches the business. We are not accountants and that is a conversation for yours. It is worth having before deciding on the headline rate alone.
This is a facility against a portfolio that exists. It is not a route into building one.
Is this for you
This works if
- You already hold investment property
- At least £250,000 of equity across the portfolio
- You want capital sitting there, not borrowed
- Business or investment purpose
This does not work if
- You do not currently hold investment property
- You are planning to become an investor
- A residential property you live in
- The same case already running with other brokers
Tell us the property, the transaction and the date it has to happen by.