Mortgage guide
What is Concentration in Portfolio Lending?
Concentration refers to the proportion of properties a portfolio landlord holds in a specific location, such as a street or block.
- Published
- 30 Mar 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 1 min
What is Concentration in Portfolio Lending?
Concentration refers to the proportion of properties a portfolio landlord holds in a specific location, such as a street or block. High concentration levels can raise concerns for lenders due to potential market impact and risk exposure, this can also be the case for lenders already lending to a large percentage of properties in the same street, or block. Applicants looking to increase that percentage will be starting from the percentage that already exists and therefore they will be able to borrow against properties within the difference of the existing concentration and their maximum exposure.
Lenders vary in their policies regarding property concentration. Some may set strict limits, like allowing no more than 10% ownership in a particular area to mitigate risk. Others might adopt a more flexible stance, without rigid concentration requirements.
Talk it through with an adviser
Speak to a Mortgage Lane adviser about your circumstances and the next steps.