Investment and term finance facilities provide medium to long-term funding secured against income-producing property. They are used by professional investors, landlords and trading businesses to refinance portfolios, acquire new assets or stabilise properties following development or refurbishment.

How It Works

Investment and term loans are assessed primarily on income coverage and tenancy profile rather than exit value. Facilities can be interest-only or amortising, with fixed or variable rates depending on borrower preference and lender appetite.

Most lenders price loans based on loan-to-value (LTV) and interest cover ratio (ICR) a measure of rental income relative to interest cost. For commercial or mixed-use property, lenders also review lease terms, tenant strength, and location fundamentals.

Typical parameters:

Loan size: from around £100,000 up to £10 million+

Term: 2 – 10 years (fixed or variable)

LTV: up to 75% for residential or 70% for commercial property

Rates: typically 4.5% – 8.5% per annum, depending on term, leverage and asset type

Completion timeframe: usually 4 – 8 weeks from valuation to drawdown

Market Overview

The UK investment and term lending market remains highly competitive, with challenger banks, specialist BTL lenders and private funds all active across the £100k–£10m segment. Rates have risen in line with base rate movements, but lenders continue to offer flexible options for professional borrowers with well-structured proposals.

Products now include hybrid BTL / commercial term loans, portfolio facilities, and amortising investment structures designed to meet tax and cashflow objectives.

What Lenders Consider

Each lender has its own credit focus, but key factors include:

  • Rental income strength and lease duration

  • Borrower experience and track record

  • Property location, tenant profile and marketability

  • Company structure and tax efficiency

  • Loan purpose (acquisition, refinance, capital raise, etc.)

Strong presentation of tenancy schedules, rent rolls, and service charge accounts can materially improve pricing and leverage options.

Common Applications

  • Refinance of buy-to-let portfolios or mixed-use property

  • Commercial investment and owner-occupied premises

  • Term takeout following a bridge or development exit

  • Capital release for further acquisitions or working capital

  • Portfolio restructuring for improved tax or leverage efficiency

Key Advantages

  • Long-term stability with predictable repayments

  • Competitive pricing compared to short-term finance

  • Choice of fixed or variable interest structures

  • Capital release for reinvestment or portfolio growth

  • Applicable to SPVs, limited companies and LLPs

Quiet residential street in an English town with traditional brick houses, hanging flower baskets, and a pedestrian walking along the pavement.

These loans focus on sustainable rental income and asset quality, making them suitable for single units through to complex multi-asset portfolios held in SPVs, limited companies or LLPs.

Next Steps

Well-prepared investment loan proposals demonstrate strong tenancy data, rental coverage and clear objectives. We work with a focused panel of lenders to secure competitive term finance for residential, commercial and mixed-use portfolios, aligning structure and pricing with each borrower’s strategy.

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