Property portfolio mortgages can straddle the border between buy to let lending and commercial mortgages as a loan over multiple properties. In a buy to let form this will take individual loan charges against each property whereas in commercial form a single loan facility can stretch over multiple properties. The former tends to be interest only, the latter amortising.
A portfolio mortgage provider will lend to a set percentage of the purchase price of the property or properties and this is generally at the top end (Loan to Value) of alternate forms of finance – as of May 2020, the highest LTVs available are 75-85%.
As a long-term product the rates often tend to be very competitive and the borrower is provided with a choice of a fixed or variable rate product. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment.