Multi property portfolio accounts
Multi property portfolio accounts were available until 2008 and additional lending is no longer available for this type of account. All properties are held under a single mortgage account number and the loan to value, as well as the rental income is spread across the portfolio. All properties make up the mortgage balance security and so properties are not linked to any sub loans. Following the withdrawal of this type of account, we now lend to portfolio landlords on a ‘one property, one account’ basis.
Releasing a property allows one or more properties to be sold or remortgaged without fully redeeming the portfolio mortgage account. To release all properties in a portfolio at the same time, you'll need to redeem your mortgage.
There is an administration fee of £140 to release each property. If a whole portfolio account is being redeemed, the administration fee will be £140 in full.
How can I request to release a property?
You can request a release of property directly or ask a solicitor or broker to act on your behalf.
Complete the release of property request form and we’ll send your quote to the email address we have on record for you. If any of your contact details need to be updated, let us know before you complete the form.
We aim to have your quote ready within 20 working days from receiving your request, however this is dependent on the overall size of your portfolio. Your quote will be valid for 3 months from the day we issue it to you. Your quote will not include any payments that are due to be collected.
Any payment you make will change your outstanding balance.
If you’re unsure which property in your portfolio to release, you can also request individual figures for each one. You may also wish to release more than one property in your portfolio, in which case we can provide you with simultaneous figures to enable you to do that. If a simultaneous release figure is provided, all properties being released will need to complete on the same day in order for the quote to be valid, and any remaining figures will need to be recalculated to prevent any overpayments.
What if I have arrears?
You can still request to release property from your portfolio mortgage account, any arrears on the account will be included when calculating figures and will need to be repaid to allow us to release our charge.
Are valuations required?
Yes, all properties on a portfolio account will need an up-to-date valuation, these will remain valid for 3 months.
We’ll look to complete an automated or computer based valuation on the properties. If this isn’t possible a valuer will visit and do a physical valuation. A mix of methods may be used across the properties.
This valuation figure will be used in the release of property calculation. This means the loan to value or rental coverage may change on the account.
How is the release of property calculated?
The release of property figure is calculated to maintain either the loan to value or rental cover, whichever is higher. These are based on the valuations and the outstanding mortgage balance.
We do not allow an increase in loan to value or a reduction in rental cover following the release of a property, however with new valuations, the loan to value and/or rental cover may change. When we calculate the rental cover, we will apply a stress rate of 5.99%. This may be higher than the current rate but is only used for this calculation.
What if my release of property quote has expired?
If expired, we’ll issue an updated figure. This may be different from the previous quote due to any updates to valuation information.
Will my monthly payments change?
When funds are received, your mortgage balance will be reduced immediately and the amount of interest you pay will be reduced from the first day of the following month, unless your mortgage term has expired, in this case, your monthly payment will remain the same.
If your mortgage term has expired, there will be no change made to your monthly payment.
How we apply release of property funds to your mortgage
Unless you tell us otherwise, we’ll apply your payment using the following principles in this order:
- Interest only mortgages.
- Highest interest rate (where there is more than one sub loan on the mortgage).
- Shortest term (where there is more than one sub loan on the mortgage).
Let us know if you’d like your payment to be applied differently to this prior to payment.
Your annual 10% capital repayment allowance cannot be used towards a release of property payment.
How can I make my payment?
We can only accept payments from bank accounts that match the name(s) on the mortgage. Any payments made that don’t match the name(s) on the mortgage will be returned.
Visit our payments page to find out to make a payment.
Remortgaging a property back to The Mortgage Works
Can I remortgage a property back to The Mortgage Works from a historic multi-property account?
Yes, you can remortgage a property to us from this type of account to a ‘one account, one property’ basis. A release of Property quote will be required first.
Once you've received your quote, please contact us.