Mortgage guide
What are Hedging solutions?
With hedging for portfolio re-mortgages, they are most common with larger facilities which usually include portfolio mortgages. We see this as an option for savvy property investors that look at all options which include fixed rates, swaps or caps, these are usually the three options that you have when hedging your interest rates.
- Published
- 30 Mar 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 3 min
What are Hedging solutions?
With hedging for portfolio re-mortgages, they are most common with larger facilities which usually include portfolio mortgages. We see this as an option for savvy property investors that look at all options which include fixed rates, swaps or caps, these are usually the three options that you have when hedging your interest rates.
hen securing a portfolio re-mortgage with a bank, you typically have the option to choose between variable interest rates, fixed interest rates, or a combination of both.
For loans with variable interest rates, like those tied to the Base Rate or LIBOR, you might consider hedging products such as interest rate swaps or caps. These financial instruments offer protection against increasing interest rates. Each hedging product has unique features, and we can refer you to a third party company to provide alternative options with a detailed explanation of the associated risks and benefits.
Fixed interest rates, commonly known as Fixed Rate Loans, also carry certain risks. Similar to the previously mentioned hedging products, it is crucial to secure these rates at favourable market conditions.
The hedging process usually starts with your bank presenting various hedging options, including swaps, caps, and Fixed Rate Loans, on a non-advisory basis. You will need to evaluate these options and select the hedging product that best fits your needs. The final step typically involves a live recorded call to lock in your chosen hedge at the current rate or premium.
Mortgage Lane are not able to give advice on hedging, but we may refer you to a suitable specialist that is able to assist you. We recommend you seek advice from relevant professionals when considering interest rate hedging against your portfolio re-mortgage.
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 are hedging solutions on portfolio facilities?
Hedging fixes or caps the interest cost on larger, variable-rate portfolio facilities using swaps, caps, or fixed-rate loans. Banks present these on a non-advisory basis; Mortgage Lane cannot advise on hedging but can refer you to a specialist who can.
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.
Can I refinance out of a portfolio loan?
Yes. A full refinance is possible, though a product transfer with the existing lender is often cheaper and faster, which is why choosing a lender that supports product transfers matters at the outset.
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