Monthly archive for August 2020

Portfolio mortgages can simplify finances for overseas and expat landlords holding property in the United Kingdom, as that’s what they’re primarily designed for. With recent news regarding tax and stamp duty laws, overseas landlords are forever looking at methods to increase their investment income. Further changes in 2020 will lower the amount of tax relief a landlord can claim. For instance, overseas landlords won’t be able to offset interest as an expense like previous years. For landlords with multiple properties, or landlords aiming to grow their portfolios, a portfolio mortgage could be something to consider. Placing an entire portfolio under one mortgage can be beneficial, especially with a large number of properties. What is a portfolio mortgage? A portfolio mortgage allows overseas and expat landlords to place all of their buy to let mortgages under one mortgage. Portfolio finance is treated as a single mortgage account. Rather than having separate buy to let mortgage lenders for each property, the entire portfolio is undertaken by one portfolio mortgage lender, hence one monthly payment. The property portfolio is registered as a limited company and finances and expenditures are treated exactly the same as any other business model. Property portfolio financing is a term used for when a landlord has at least four properties. Technically, a portfolio could consist of two properties, but from a lender’s perspective, they would usually class four properties to be the bare minimum for a portfolio. There is no limit to how many properties landlords can hold but some lenders do have their own internal restrictions. If a landlord had ten properties on separate mortgages, then there would be ten monthly outgoings to multiple lenders. A portfolio mortgage allows landlords to solely focus on a single mortgage payment each month to a single lender. One monthly mortgage payment is perhaps easier to manage in comparison to multiple mortgage payments across the month. Lenders introduced portfolio mortgages to allow landlords to hold and manage their multiple buy to let mortgages with greater clarity. Rather than having multiple mortgage statements, portfolio mortgages allow for one monthly statement and one payment, simple. Landlords with portfolios don’t have to have a portfolio mortgage and it is entirely optional. Advantages of having a portfolio mortgage for overseas landlords All mortgages types will usually have positives and negatives. It’s difficult to explain whether or not a certain mortgage type will be advantageous to you without