FacilitiesPortfolio Credit Facility
Portfolio Credit Facility
A credit line against your property. Not from the high street.
A charge is placed on property you already own, for the equity you want available. It works like a large overdraft: draw on it whenever you need, in tranches, repay and draw again, instead of borrowing in one lump. There is no waiting for a deal to complete.
70Per cent of value, the cap.
- Amount
- From £250,000
- Term
- Up to 24 months, renewable
- Use
- Property or any business purpose
- Cost
- Interest on what you draw
- Security
- A charge over one property or several
How it works
Take one property worth £1,000,000 with a £400,000 mortgage. The 70% cap allows £700,000 in total, which leaves £300,000. That is the facility, and the charge is for that £300,000. With several properties, they are valued together and the same sum is worked out across them.
What it is for
Having the money in place before you need it, not chasing it once you have found a deal. At auction it is the difference between bidding and watching: the deposit comes out of the facility and the balance can go on a bridge. On a private deal, it is the difference between being taken seriously and being one of three people who said they were interested.
Think of it as a property hunting licence, or a credit line for property investment.
Who can borrow
An individual investor, a developer or a property company (an SPV): anyone who holds investment property. A charge is taken over one property or several, and the case turns on its value and what the money is for, not on how the borrower is set up.
Larger portfolios can be structured bespoke. Terms come from the lending partner and are confirmed after valuation.
If the equity is there, the rest is the easy part. Tell us what you need
Why not just remortgage?
On rate alone, a remortgage can look attractive. But it gives you the money once: you spend it, and when the next opportunity comes round you start again.
A portfolio facility stays in place. The equity is not released in one go, and the money is there the day you need it, not six weeks later.
There are also tax and structuring questions about where the borrowing sits. We are not accountants, so that is a conversation for yours, and worth having before you decide on the rate alone.
This is a facility against property you already own, not a way to buy it.
Is this for you
This works if
- You hold investment property with equity to borrow against
- You are willing to give a charge over it
- You want to borrow £250,000 or more
- You want to draw and repay as you go
- The purpose is business or investment
This does not work if
- You are planning to become an investor
- A residential property you live in
- You want a lump sum on a fixed schedule, which is a business loan
- The same case already running with other brokers
Secured against property. Property given as security may be repossessed if repayments are not maintained.
Tell us the properties you hold and what you would use the facility for.