Aldermore bank offering multi-property portfolio switcher mortgage for landlords with up to 30 properties

by Aaron Strutt

Dec 03 2024

Aldermore bank offers a Multi-Property buy-to-let mortgage for individual and limited company landlords managing portfolios of 2 to 30 residential investment properties.

The idea of the product is for landlords to remortgage their properties from multiple lenders onto one product, potentially when switching to a limited company.

The bank offers a range of two and five-year fixed rates, and there are no-fee products. The unusual thing about Aldermore's Multi-Property product is that there is one arrangement fee, no matter how many properties the landlord remortgages. There is one monthly direct debit and one mortgage rate. 

The Multi-Property mortgage scheme has been designed to help larger landlords leverage their overall portfolio to access better borrowing opportunities, from refinancing to raising additional borrowing. They also streamline the process and admin involved in applying for and managing multiple mortgages, freeing up busy landlords to untangle the ever-tightening red tape.

All properties must switch to Aldermore on the same day

As part of the transaction, all properties must switch to Aldermore and be completed on the same day. So it’s suited for bulk remortgaging or purchasing and those incorporating into limited company structures from individual names.

The product is available up to a maximum combined loan size of £10m up to a 65% combined loan-to-value ratio (or £5m up to 75 LTV). Rates are competitive, starting at sub-5%, and landlords can choose from various fee options. The highest fee option for Aldermore's cheapest rate is a whopping 7%, although a more standard fee is £1,999.

How does Aldermore's Multi-Property mortgage work?

• Single Mortgage Account: Consolidate multiple properties under one mortgage account, resulting in a single direct debit payment and a unified maturity date for the entire portfolio.
• Blended Loan-to-Value (LTV): Calculate a combined loan-to-value across all properties, potentially enhancing borrowing capacity.
• Unified Stress Test: Apply a single affordability stress test to the entire portfolio, simplifying the assessment process.
• Valuation and Fees: Benefit from free valuations on standard properties and choose from various fee structures, including fixed fees, percentage-based fees, and no-fee options.
• Legal Assistance: Access an assisted legal package for remortgages, streamlining the legal process.

Aaron Strutt, product director at Trinity Financial, says: “Moving multiple mortgaged properties onto a single buy-to-let deal can offer advantages, especially for landlords that have spoken to their accountants and agreed they need to take action to be more tax efficient. Also, this is for landlords who don't want to deal with multiple lenders or have payments leaving their account on different dates.

"Many specialist buy-to-let lenders are keen to attract professional landlords rather than those with one of two properties."

Why would a landlord want Aldermore's Multi-Property mortgage?

This mortgage product is ideal for:

• Portfolio Landlords: Those seeking to manage multiple properties efficiently under a single mortgage account. One application needs to be made for up to 30 mortgages, which means less administration for landlords.
• Limited Companies: Corporate entities aiming to consolidate their property investments for streamlined management.
• Investors Seeking Simplification: Landlords desiring simplified administration, with one payment and one set of documents for their entire property portfolio.

Key considerations:

• Applications should consist of properties of the same type; for example, standard units should be grouped separately from Houses in Multiple Occupation (HMOs) or multi-unit freehold properties.
• Mixing purchase and remortgage transactions within a single application is not generally permitted.
• There is one review date on product rate maturity, so when your fixed rate expires, the lender should offer another fixed rate. One affordability stress test across the portfolio. There is one account number and an annual statement. One monthly payment, Direct Debit collection, and one product fee.
• Properties can be released from the portfolio subject to any applicable early repayment charges. However, the portfolio will require re-weighting to ensure the original loan-to-value, interest cover ratio, and any loan covenants are met. Properties cannot be added or substituted following completion.  

Call Trinity Financial on 020 7016 0790 to secure a professional landlord rate switcher mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

The Financial Conduct Authority does not regulate most Buy to Let Mortgages