Mortgage guide
Can I get interest only on a portfolio mortgage?
Yes you can get both capital repayment and interest only for portfolio mortgages.
- Published
- 30 Mar 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 2 min
Can I get interest only on a portfolio mortgage?
Yes you can get both capital repayment and interest only for portfolio mortgages. Most of our clients opt for interest only. It is very common for lenders to approve interest only on portfolio mortgages, including remortgages, this also means that you are only repaying the interest owed on the principle loan amount which will mean that you will owe the full amount borrowed at the end of the term, unless you make any overpayments. If you are borrowing £100,000 at 5.2% then your monthly payments would be £433.33. Lenders usually accept “Sale of security” to be the repayment type of the interest only mortgage, however, most people usually remortgage before the end of the term.
Buy-to-let calculator
Estimate one property at a time. Portfolio-wide underwriting is assessed separately.
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Maximum Loan to Value (LTV) | 80% LTV |
| Minimum Loan size | £40,000 |
| Mortgage Term | Up to 35 years |
| Interest rate | From 4.89% |
| Interest options | Fixed 2, 3 and 5 years, variable & base rate trackers |
| Experience requirement | None |
| Up front costs | Free valuation, Free legal representation |
| Broker fees | None |
| Completions | 4-12 weeks |
Portfolio landlord mortgage criteria
These wider product criteria provide context for this guide. The lender will assess your individual case.
| Criterion | How it works |
|---|---|
| Definition | Four or more distinct mortgaged buy to let properties, held alone or jointly, counted in aggregate across lenders (SS13/16). Lenders differ on whether the property being applied for counts and on how they count properties held in a limited company. |
| Assessment | A specialist underwriting approach that looks at the whole portfolio as well as the new loan, for banks and building societies under SS13/16. Other lenders set their own approach. |
| Property schedule | Every property: ownership, value, outstanding loan, lender, monthly payment and rent. |
| Stress rate | At least 5.5% over the first five years, or the fixed rate where it is fixed or capped for five years or more (SS13/16). On the cases we arrange, commonly around 5.5% on two-year fixes and around 4.5% on five-year fixes. |
| Portfolio stress test | Rent across the portfolio against stressed interest on all its loans, at the lender's ratio. In our experience commonly 125% for companies and basic-rate taxpayers and 145% for higher-rate personal borrowers. How the existing properties are tested varies by lender. |
| Aggregate loan to value | Some lenders cap the loan to value across the whole portfolio as well as on each loan, and the cap varies by lender. In our experience 85% is the ceiling on a buy to let loan. |
| Portfolio size and exposure | Some lenders cap the number of properties or their total lending to one landlord; others set no property limit. |
| Business plan and cash flow | Lenders following SS13/16 may ask for a business plan and the cash flows of every property. Requirements vary by lender. |
| Assets, liabilities and tax | A statement of assets and liabilities, and the income and tax position, including the tax on rental profit. |
| Ownership structure | Personal names, a limited company, or both. Companies and individuals are taxed differently on rental profit, which can change the rental cover a lender asks for. |
| Experience and conduct | The landlord's track record is reviewed, and arrears on any property are assessed with the rest of the credit file. |
| Regulation | Business buy to let is outside the FCA's mortgage rules. A loan to an individual on a property the borrower or a close relative lives in is a regulated mortgage contract. |
Related case studies
Frequently asked questions
What is the interest rate on a portfolio loan?
The interest rate on a portfolio loan varies by lender and is typically higher than standard buy to let rates due to increased complexity and risk. Rates are set based on portfolio Loan to Value (LTV), asset mix, income strength, and whether lending is residential buy to let, commercial, or private banking.
Can different property types in a portfolio affect the interest rates?
Yes, different property types can impact interest rates, as lenders assess the risk associated with each property type and adjust rates accordingly.
What is a portfolio remortgage?
A portfolio remortgage refinances multiple rental properties, either into one consolidated facility or across structured separate loans. It is used to reduce total borrowing cost, release equity, or reorganise lending, and is assessed on the whole portfolio rather than a single property.
Are portfolio mortgages regulated?
Portfolio landlord mortgages are business lending and are not covered by the Financial Services Compensation Scheme, so borrowers should satisfy themselves they are dealing with a reputable lender.
Who counts as a portfolio landlord?
A portfolio landlord is anyone with four or more mortgaged buy-to-let properties. Under Prudential Regulation Authority rules, lenders must assess the full portfolio. Rental cover, gearing, assets, liabilities, and cash flow, before lending to a portfolio landlord.
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