Can I get a commercial mortgage as a landlord with a small portfolio? Yes, and often it is the better route.
Yes. A landlord with two to four properties can borrow on commercial terms through a limited company or SPV, with the loan sized on the portfolio's rental cover rather than personal income, at up to 75% loan to value. The question is whether to keep separate buy to let mortgages or move to one portfolio facility, and the answer turns on how many more properties you plan to buy.
By Dominic Whitecross, Co-Founder, HyLend. Last reviewed October 2026.
What small portfolio lenders actually require
| Criterion | Typical 2026 position |
|---|---|
| Number of properties | Two or more; some lenders start at four |
| Borrower | Limited company or SPV, directors give personal guarantees |
| Experience | Usually 12 months as a landlord; first time landlords on a case by case basis |
| Rental cover | 125% to 145% of interest at a stress rate of 5.5% to 7.5% |
| Loan to value | Up to 75% across the portfolio; individual properties can vary |
| Minimum loan | £100,000 to £250,000 depending on lender |
| Property types | Residential lets, HMOs, semi commercial and mixed use on one facility |
This is non regulated, limited company lending only. We do not arrange consumer buy to let or regulated mortgages. Limited company buy to let →
Separate mortgages or one facility
Separate limited company buy to let mortgages suit a landlord who will stay at two to four properties: each is priced and tested on its own, a weak property does not drag down the others, and you can sell one without touching the rest.
One portfolio facility suits a landlord who is still buying: one valuation exercise, one set of covenants, one lender who already knows the book, and equity across the whole portfolio available for the next purchase. The cost is cross collateralisation, meaning the lender holds a charge over everything and a sale needs a release calculation. Portfolio finance in detail → What a cross collateral facility commits you to →
The number that decides it: rental cover
A small portfolio lender sizes the loan on rent, not salary. Rent of £60,000 a year across three properties, cover of 130% and a stress rate of 6.5%: maximum loan = 60,000 / (1.30 x 0.065) = £710,000. If the properties are worth £1m combined, LTV allows £750,000, so rent binds at £710,000. Raise the rent, reduce the stress rate by choosing a longer fixed rate, or add a property, and the figure moves. How the calculation works →
What catches small portfolios out
Three things. Properties bought personally rather than through a company need to be transferred in, with stamp duty and capital gains tax consequences, before a company facility can take them; get tax advice first. HMOs and semi commercial units are valued on different bases and some lenders exclude them from a mixed facility. And a portfolio that is already geared above 75% on separate mortgages cannot be refinanced onto one facility without cash or rent growth. Remortgaging a limited company portfolio →
How we place it
We model both routes, separate mortgages and a single facility, on your actual rents and values, and show the loan each one supports and what each costs over the period you plan to hold. Then we test the better one across the whole market.
Send the basics
Asset, amount, timeline and exit. Lender backed indicative terms within 24 hours, tested across the whole market rather than a single panel.
Send the basics → or call 07310 008347, or WhatsApp +44 7741 434395.
Small portfolio landlord: FAQs
How many properties do I need for a portfolio mortgage?
Two at the most flexible lenders, four at the most common threshold. Below that, separate limited company buy to let mortgages do the same job.
Do I need a limited company?
For the lending we arrange, yes: a UK limited company or SPV with personal guarantees from the directors. Personally held properties are consumer buy to let, which we do not arrange.
Does my personal income matter?
Less than on a residential mortgage. Lenders size the loan on rental cover and look at personal income mainly as a backstop. Some apply a minimum income of around £25,000.
Can I include an HMO or a shop with a flat above?
Usually, on a mixed portfolio facility. HMOs are valued on either bricks and mortar or investment value depending on size, and semi commercial units on investment value, which affects the loan on those properties.
Can a first time landlord get a commercial buy to let mortgage?
Some lenders will lend to a new limited company with no track record, at lower LTV and higher pricing, usually where a director has relevant property experience. It is case by case.