Together has introduced a new lower-rate lending proposition for portfolio landlords seeking more than £1 million in finance, as demand grows for structured funding solutions across larger buy-to-let portfolios.
The specialist lender said the new proposition is aimed at landlords with two or more properties who are looking to restructure borrowing as they adapt to a changing buy-to-let market.
The launch comes as landlords continue to contend with higher interest rates, increased tax pressures and the impact of the Renters’ Rights Act, prompting many to review how their portfolios are financed.
Available on loans of more than £1 million, the proposition offers lower rates than Together’s standard buy-to-let products, with first charge two-year fixed rates starting from 4.69%.
Under the new structure, landlords benefit from a single monthly payment across their portfolio through one direct debit, one affordability assessment, one maturity date and one personal guarantee.
The proposition is available across both first and second charge buy-to-let lending. Automated valuation models are available for fully residential properties, while the lender said the product can support portfolios containing non-standard or mixed-use assets, with no maximum portfolio size.
Second charge rates are priced at 25bps above first charge rates, while arrangement fees operate on a sliding scale to provide greater flexibility over monthly repayments.
Together said it has seen growing demand for larger loans exceeding £1 million as landlords look to optimise their portfolios through structured finance. The lender, which has a loan book of £8.4 billion, said enquiries for portfolio restructuring have increased as borrowers seek more efficient funding models.
Russell Anderson (pictured), chief strategy director at Together, said: “We know from the feedback that we’ve had from brokers that landlords are proactively seeking innovative ways to maximise future opportunities, moving away from individual property loans and turning to lenders who can restructure debt at a portfolio level.
“The move is a clear signal to lenders that those able to help with complex financial solutions will be best placed to offer the added levels of support that landlords seek from their finance partner.
“We’re pleased to launch our new portfolio proposition at a lower rate than our standard buy-to-let products across first and second charges to allow landlords to release equity across their assets to grow their portfolios.”
