Portfolio lending is primarily professional landlords with 6+ properties.

Many mainstream Buy to Let lenders will only lend to clients with less than 6 properties.  However, we have access to broker only lenders who cater to this level of borrowing/portfolio size.

  • Post credit crunch there are fewer lenders in this sector.
  • Lending can be against the whole portfolio equity and not just individual properties.
  • Buying at auction can be easier using the existing portfolio as security.
  • Some portfolio lenders will only lend with exclusive rights i.e. to one Ltd Company.

Ltd Company

Buying your property through a Limited Company needs to be via a Special Purpose Vehicle Limited Company (SPV) –  which is solely for the purpose of property purchases/rentals.  You cannot use your existing Limited Company unless it is set up in this way.

If you already have a LTD Company and are wondering whether this would meet the SPV criteria, this is what the lenders like to see:

• SIC code for letting property

• No sign of any revenue through the company of anything other than letting property

SIC code – The Standard Industrial Classification of Economic Activities (SIC)  – used to classify business establishments by the type of economic activity in which they are engaged.

There are pros and cons to this type of purchase highlighted below:


  • Income Tax can be lower as you would take income in the form of dividends which are taxed at a lower rate than personal income taxation.  This is mainly beneficial to higher rate taxpayers.
  • Profits can be retained within the company to further reduce tax liabilities in any given year.
  • Shareholders can be added to the company to spread the tax liability.


  • No personal annual Capital Gains Tax exemption is available.
  • Requirements to comply with Company Law/Companies House, which adds extra costs and administrative burdens.
  • Fewer lenders in the market and generally higher interest rates.