Portfolio Loan-to-Value & Equity Calculator
Add each property to calculate your total portfolio LTV and equity position.
Frequently Asked Questions
Most BTL lenders require a maximum 75% LTV (25% deposit/equity). Some specialist lenders go to 80% but at higher rates. Portfolio landlords face stricter requirements.
A landlord with 4 or more mortgaged buy-to-let properties. Portfolio landlords face enhanced underwriting under PRA (Prudential Regulation Authority) rules, requiring a full portfolio assessment.
BTL lenders typically require rental income to cover 125-145% of the mortgage payment at a stress rate (usually 5.5%+). This is separate from LTV and is the main constraint for higher-yielding properties.
If your portfolio LTV is below 75%, you may be able to release equity by refinancing. The additional borrowing available is the gap between your current mortgage and 75% of the portfolio value.
Some portfolio lenders take a charge over all properties in your portfolio as security, not just the individual property. This can restrict your ability to sell one property without affecting others.
Rising property values reduce your LTV (more equity). Falling values increase LTV. If LTV rises above the lender's maximum, they may require repayment or additional security.
Lenders must assess portfolio landlords' entire rental portfolio against the stress test (typically 5.5% rate, 125% rental coverage). Each new application triggers a full portfolio review.
Income tax on rental profits (with mortgage interest limited to basic rate relief), CGT on sales (24% higher rate from October 2024), SDLT including 3% surcharge on additional properties, and potentially IHT.
Company ownership can be tax-efficient (corporation tax 19-25% vs income tax up to 45%), especially for higher-rate taxpayers who retain profits. However, company mortgages are typically costlier and stricter.
Section 24 (from April 2017) restricts individual landlords to basic rate tax relief (20%) on mortgage interest. Higher rate taxpayers are particularly affected. Company structures are not subject to Section 24.
Total annual gross rent ÷ total property values × 100. A typical portfolio yield is 4-7% gross. Net yield (after costs) is typically 1-3% lower.
Short-term finance (typically 6-24 months) used to acquire properties quickly or fund development, before converting to a standard BTL mortgage. Rates are higher (0.5-1.5%/month).