Investment loan rates

Lenders price investment lending separately from owner-occupier lending, and the gap varies by lender, by loan type and by whether you are paying principal and interest or interest only. Comparing one lender's investment rate against another's owner-occupier rate tells you nothing useful. We compare like for like across the panel rather than quoting a figure here.

Generally more than an owner-occupier purchase, and the exact requirement varies by lender and by your overall position. Lenders mortgage insurance is available on investment lending with some lenders and not others. Equity in a property you already own can supply the deposit instead of cash, subject to serviceability.

Usually a discounted portion rather than the full amount, because lenders allow for vacancy, management fees and maintenance. The proportion counted differs between lenders, which is one of the main reasons two lenders reach different borrowing figures on the same investor. We check the treatment before choosing where the file goes.

It preserves cash flow while the portfolio is building, which is why many investors use it. The trade is that the balance does not reduce and repayments step up when the interest-only term ends. Whether the tax position makes it worthwhile is a question for your accountant rather than for us.

Cross-securitisation means two or more properties secure the same lending with one lender. It can make an approval possible, and it also ties the properties together, so selling one or refinancing either needs that lender's consent. Standalone securities keep each property free, and the choice is far cheaper to make at the start.

Often yes, and it is one of the most common conversations we have. It depends on whether a lender will service both loans and on how the equity is released for the new purchase. The order the loans are set up in affects which debt sits against which property, so it is worth planning before you buy.

Yes, and fewer lenders will do it than will lend to an individual. Company and trust borrowers usually need directors' or beneficiaries' guarantees and more documentation. The structuring decision belongs with your accountant, and we work alongside them to find a lender that accepts the structure they recommend.

Your bank assesses you against one credit policy and one view of how much rent counts. An investor who is close to the limit at one lender can be comfortably inside another lender's policy on the same figures. Comparing the panel is what finds that, and it is difficult to do from outside the market.