Large loan buy-to-let mortgages
Looking to build a substantial rental property portfolio or want to secure a unique large deal?
A large loan buy-to-let mortgage allows experienced – or not – landlords to access higher lending amounts to invest in multiple properties or higher-value real estate.
With a large loan buy-to-let mortgage, landlords can borrow larger amounts to finance the growth of their portfolio significantly in one move.
Your path to ambitious property investments.
What are large loan buy-to-let mortgages?
A large loan buy-to-let mortgage is a specialist product designed for property investors looking to borrow significant amounts.
What qualifies as a large loan amount differs depending on the lender. Certain lenders label buy-to-let loans exceeding £500,000 as large loans, while other lenders set the threshold higher at over £1 million.
These mortgages cater to investors who want to:
- Purchase multiple rental properties within a single financing deal rather than have one mortgage for each of them.
- Acquire higher value investments like Houses in Multiple Occupation (HMOs), multi-unit blocks, or commercial premises.
- Release equity from existing portfolios to fund further property acquisitions and growth.
- Consolidate financing for a large real estate portfolio under one efficient mortgage.
By streamlining borrowing into one larger mortgage loan, experienced landlords can take their property business to the next level more quickly. Large loan buy-to-let products enable raising substantial capital tailored to property buy-to-let investment strategies faster.
Criteria for large loan buy-to-let mortgages
Extensive experience in owning and managing rental properties can be a plus, but it is not a mandatory requirement to be approved for larger buy-to-let loans over £1 million.
Some private lenders will consider first-time buyers. Lenders want confidence that you can handle the higher responsibilities that come with large-scale financing and portfolio management.
Typical applicant profile criteria for large loan products include the following:
- First-time buyers are accepted for more flexible and niched lenders. Being an experienced landlord is a plus, but it is not mandatory
- Minimum age of 21 years old
- Minimum 125% of monthly mortgage payments when using a stressed interest rate.
- Deposits of at least 25%
- Most specialists lenders will want to take a look at your current situation and propose a deal that will align with your goals
First-time landlords or those with only 1-2 existing properties can still meet the requirements for a large buy-to-let mortgage loan.
Lenders will want to assess the likely rental income in addition to looking at the personal finance situation of a client.
How much can be borrowed?
Loan sizes available for large buy-to-let mortgages are available up to £5 million, although some lenders may be able to offer higher borrowing.
The maximum amount you can access will depend on factors like:
- The level of equity/deposits you have available
- Total current value of your property portfolio assets
- Expected annual rental income across all properties involved in this loan
- Your existing debts, liabilities, and financial commitments
- Your overall credit profile, income, and financial standing
The last two items will have a heavy weight on the lender’s decision, especially if you will use top slicing (more details ahead).
Lenders restrict lending to a percentage of the portfolio value and rental income to control risk, typically maxing out at 75% loan-to-value.
Make it easier for yourself – our friendly advisors are here to help.
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What is top slicing for large loans?
Top slicing can be used in two ways.
An additional property within a portfolio can be used as additional security to access a larger loan amount.
For example, a landlord may have a portfolio worth £2 million with £500,000 of equity. Normally this would limit borrowing to £1.5 million at 75% LTV. Top slicing can be used by offering an additional property with equity for security, perhaps valued at £500,000, which enables for a larger loan to be offered on the primary security.
In this scenario, an additional borrowing of £200,000 (for example) could be borrowed, taking the maximum loan to £1.7m. So the enhanced leverage on one asset unlocks more total financing. Top slicing can help landlords with substantial portfolios but limited free equity access extra capital.
Top slicing can also utilise a landlord’s personal income to access higher leverage on a buy-to-let purchase.
For example, a landlord with £150,000 in annual salary income is looking to purchase a buy-to-let property for £500,000. Based solely on the property’s rental income and if in a lower yielding area like London, a lender may limit lending to £250,000 at 50% LTV. But by top slicing utilising the disposable income from the clients’ £150,000 salary income, the landlord could borrow £325,000 instead, or 75% LTV. This demonstrates greater affordability, allowing higher leverage.
For high-net-worth individuals, top-slicing personal income gives more mortgage borrowing power on buy-to-let acquisitions beyond standard lending limits.
Interest rates and fees on large loans buy-to-let mortgages
Interest rates charged on large buy-to-let loans do tend to be slightly higher than for standard buy-to-let mortgages, due to the increased risk lenders take on with large-scale financing.
Expect average rates in the region of 5-8% for jumbo buy-to-let loans over £1 million.
It is important to evaluate whether these rates and costs make financial sense within your wider investment strategy and portfolio projections. The value generated from deploying substantial capital into property should outweigh the financing expenses.
Applying for a large loan buy-to-let mortgage
When applying for jumbo buy-to-let mortgages, being able to demonstrate the strength of your overall property portfolio is key.
Lenders will want to assess your assets, income streams, and track record before approving large loans.
Documents you should be prepared to provide include:
- A property schedule detailing each rental asset’s worth, rents, occupancy, type, etc.
- Mortgage statements evidencing existing financing
- Tenancy agreements and rent records proving consistent income
- Tax calculations and tax year overviews to show your income
- Business plans if lending is for an HMO or commercial premises
Keeping your portfolio paperwork organised and being able to illustrate a successful history of managing properties at scale will help secure large loan buy-to-let finance more smoothly.
We will guide you through the process and recommend the best rate and lender available to meet your requirements.
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020 8517 1141
Maximising portfolio growth with a large buy-to-let loan
For seasoned landlords with the expertise to manage it, utilising large loan buy-to-let mortgages can be an efficient way to take your portfolio to the next level.
Whether looking to accelerate acquisitions, streamline financing, or tap into equity, jumbo buy-to-let loans provide access to substantial capital.
Working with one of our experienced brokers will save you hours and the headspace of going direct to the banks and trying to find the right lender.
Home of Mortgages has access to all the different lenders and will find the best rate and the most suitable type of loan for your given purpose.
We will also save you a lot of time and hassle filling out a painful amount of paperwork to free your time and mind to make your investment plans successful!
Call us today for a same-day free quote.
020 8517 1141
Do I have a chance of being approved for a large loan as a first-time landlord?
Yes! We can guide you because high street banks are more likely not to have the right product for you or not to consider you for a large loan. By having one of our expert brokers on your team, you gain access to exclusive niche lenders and invaluable expertise to secure the optimal large loan product.
Can I get a large buy-to-let loan as an expat?
Yes, specialised brokers like us will know the private banks and niched lenders that will consider an expat for a large loan. An experienced mortgage broker can save you hours and get you the best rates that will make a difference in your peace of mind and in your investment return.
When applying for a large loan as an expat borrower, here is an example of some common eligibility criteria lenders may require:
- Have an active UK bank account
- Show evidence of a UK credit history
- Pay taxes in the UK or have filed UK tax returns
- Currently own at least one UK buy-to-let property
- Not be living in certain excluded countries.
- Be employed, self-employed or retired with provable consistent income
Lenders reserve the right to decline applicants based on their specific country of residence, among other eligibility factors. Meeting the criteria above helps demonstrate an applicant's financial ties to the UK as an expat borrower seeking financing on a UK property.
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Remember | Your home may be repossessed if you do not keep up repayments on your mortgage.
Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.