Can I set up multiple revolving credit facilities across different properties?

Can I set up multiple revolving credit facilities across different properties?

As a professional buy-to-let landlord, managing cash flow across a growing property portfolio can be a constant challenge. Whether you are dealing with unexpected repair bills, funding EPC upgrades, or trying to secure a new property at auction, having quick access to capital is essential. One of the most flexible modern tools available to property investors is the Buy-to-Let (BTL) revolving credit facility.

But what if you own a larger portfolio? Can I set up multiple revolving credit facilities across different properties? The short answer is yes. You may typically establish separate secured facilities across multiple properties in your portfolio, provided you meet the lending criteria for each individual asset. This strategy allows you to unlock equity from various properties, giving you multiple independent lines of credit to draw from whenever opportunities arise.

How a secured revolving credit facility works for landlords

Before exploring how to set up multiple facilities, it is important to understand exactly how this product works. A buy-to-let revolving credit facility operates much like a property overdraft. It is not an unsecured business loan, a personal credit card, or a generic business line of credit. Instead, it is a secured facility that sits behind your existing first-charge mortgage as a second charge.

Once the facility is arranged, you are given a maximum credit limit based on the equity available in your property. You can draw down funds when you need them, repay them when cash flow allows, and then draw them down again without needing to reapply. The primary benefit of this setup is that interest is only charged on the funds you actually draw down, not on the entire facility limit.

Furthermore, once the initial setup is complete, funds can typically be drawn in 24 to 48 hours. This speed makes it an excellent tool for fast-moving property markets.

Setting up multiple facilities across your portfolio

If you own multiple buy-to-let properties, you do not have to limit yourself to just one revolving credit facility. You can apply for separate facilities secured against different properties in your portfolio.

Because each facility is secured by a second charge on a specific property, each application is assessed on its own merits. Lenders will look at:

• The current market value of the specific property.
• The outstanding balance on the existing first-charge mortgage.
• The rental income and overall yield of that property.
• Your credit history and overall portfolio structure.

By securing a facility against Property A and another against Property B, you can keep your finances organised. This is particularly helpful if you hold different properties in separate Special Purpose Vehicles (SPVs) or limited companies. It ensures that the debt and expenses for one project do not cross over into another, making your tax accounting much simpler.

Comparing revolving credit to bridging finance and remortgaging

When looking to raise capital across multiple properties, landlords typically consider three main options: remortgaging, bridging finance, or a revolving credit facility. Understanding how these compare can help you make the right choice for your portfolio.

Revolving credit vs. Remortgaging

Remortgaging is a traditional way to release equity. However, if you remortgage to release cash, you have to refinance your entire first-charge mortgage. This can trigger expensive early repayment charges (ERCs). It also forces you to move your entire mortgage balance to a new interest rate, which may be significantly higher than your current rate. A revolving credit facility sits as a second charge, leaving your competitive first-charge mortgage completely untouched.

Revolving credit vs. Bridging finance

Bridging loans are useful for short-term funding, but they are typically structured as single-use loans. Bridging loans are generally split into two categories: open and closed bridging loans. An open bridging loan has no fixed exit date but will have a set maximum term, whereas a closed bridging loan has a clear, predetermined exit plan and date, such as a confirmed property sale. Most bridging loans roll up interest, which means you do not make monthly payments, but the outstanding debt grows larger over time. Once you repay a bridging loan, the facility is closed. With a revolving credit facility, you can draw, repay, and reuse the funds as many times as you like during the facility term without having to pay setup fees again.

Real-world landlord scenarios

To see how having multiple revolving credit facilities can benefit your business, consider these common landlord scenarios:

• Scenario 1: Auction deposits and refurbishments. You have a revolving credit facility secured against Property A. You spot a run-down flat at an auction. Because you can draw down funds in 24 to 48 hours, you quickly draw the deposit and purchase funds from your facility on Property A. You then set up a second facility on Property B to cover the refurbishment costs and EPC upgrades needed to get the flat ready for tenants.
• Scenario 2: Managing void periods. You own a student HMO that experiences a major void period during the summer. To cover the mortgage payments and ongoing maintenance, you draw from the facility secured on Property C. Once the new term starts and rental income resumes, you pay back the drawn amount, stopping the interest from accruing.
• Scenario 3: Portfolio expansion. You want to buy a new holiday let but do not want to take out an expensive bridging loan. By drawing smaller amounts from revolving credit facilities secured against two different properties in your portfolio, you gather the deposit quickly without disturbing your existing low-rate mortgages.

Understanding the risks of secured borrowing

While multiple revolving credit facilities offer great flexibility, they are secured debts. Your property may be at risk if repayments are not made. This could lead to legal action, repossession, increased interest rates, and additional charges. Because these facilities sit as second charges, the lender has the legal right to seek repossession of your buy-to-let properties if you default on your payments.

Before applying for any secured facility, it is vital to review your credit profile to ensure you get the best possible rates. Get your free credit search here. It’s free for 30 days and costs £14.99 per month thereafter if you don’t cancel it. You can cancel at anytime. (Ad)

To understand more about regulated financial activity and standards in the UK, you can visit the Financial Conduct Authority (FCA) website.

People also asked

Can I have more than one revolving credit facility at the same time?

Yes, you may typically have multiple secured revolving credit facilities running simultaneously, provided they are secured against different properties and you have sufficient equity in each asset.

How does a second-charge revolving credit facility affect my first mortgage?

It does not affect your first mortgage directly. The revolving credit facility sits behind your existing mortgage as a second charge, meaning your original mortgage rate and terms remain completely unchanged.

Can I use a revolving credit facility to fund property refurbishments?

Yes, many landlords use these facilities to fund property renovations, EPC upgrades, and general maintenance, as they only pay interest on the money drawn down during the works.

Is Promise Money a direct lender for these facilities?

No, Promise Money is an FCA-authorised broker (Ref: 681423), not a lender. They work with a wide panel of specialised lenders to find the right secured revolving credit facility for your circumstances.

How quickly can I access money once the facility is approved?

Once the initial second-charge facility is fully arranged and set up, you can typically draw down funds into your bank account within 24 to 48 hours.

How Promise Money can help

Navigating the secured lending market can be complex, especially when looking to set up multiple facilities across a diverse property portfolio. Working with a specialist broker can save you time and money.

Promise Money is an experienced, FCA-authorised broker. We can help you compare available deals, assess the equity across your portfolio, and find lenders comfortable with securing multiple second-charge facilities.

To discuss your portfolio requirements and find out if you qualify for a buy-to-let revolving credit facility, contact the team at Promise Money today on 01902 585020 or visit our Promise Money BTL revolving credit hub.