Revolving Credit Facility
We design and arrange revolving credit facilities secured against existing property portfolios, allowing investors to fund further acquisitions from equity already in the portfolio — without injecting fresh capital for each purchase.
Transaction range: £2m – £100m+
Key features
- Zero Equity Injection
- Draw & Repay
- Portfolio Secured
- Warehouse Lines
- £2m–£100m+
How a Property RCF Works
A revolving credit facility (RCF) for property investment is a flexible credit line secured against an existing portfolio of investment properties. Rather than a fixed term loan with scheduled repayments, an RCF allows the investor to draw, repay, and redraw funds up to an agreed limit, with the borrowing base determined by the aggregate equity in the portfolio.
The facility limit is determined by the aggregate equity in the portfolio at an agreed LTV, typically 65% to 75%. If you have a portfolio valued at £5m with existing debt of £2.5m, you have approximately £1.25m of accessible equity at 75% LTV. This becomes the initial facility limit. As further assets are acquired and added to the security pool, the limit increases.
When a new property is acquired using the RCF, the acquisition adds a new asset to the security pool. The equity in that asset, net of the acquisition draw, increases the borrowing base. Structured correctly, the facility essentially recycles: draw to buy, add the asset, the new equity increases the limit, enabling the next draw. This is the mechanism that allows serious portfolio investors to scale at pace without capital constraints.
RCF structures are not widely understood or marketed by mainstream lenders. Most high street banks and standard BTL lenders do not offer them. Access requires a broker with specific expertise in portfolio finance and relationships with the specialist lenders who operate in this space. Managing an RCF across a growing portfolio requires robust financial modelling: drawdown planning, ICR testing, facility utilisation, and scenario analysis. Unicorn Capital Advisory builds bespoke RCF financial models for clients as part of every mandate.
Benefits
- Zero new equity required per acquisition when correctly structured
- Revolving facility — draw, repay, and redraw as needed
- Portfolio grows the borrowing base automatically
- Warehouse lines available for non-bank lenders funding their own book
- Bespoke financial model included with every mandate
- Specialist lender relationships (Reward Finance and others)
Ideal for
- Investors with an existing portfolio and a clear acquisition pipeline
- Investors who need to move quickly on time-sensitive opportunities
- Non-bank lenders seeking a warehouse facility against an originated loan book
- Portfolio owners wanting to optimise capital efficiency
- Investors with equity sitting idle in paid-down or low-LTV properties
- Family offices seeking institutional-grade portfolio financing
Frequently asked questions
What is the difference between an RCF and a portfolio mortgage?
A portfolio mortgage is a single loan with fixed repayments. An RCF is a flexible credit line that can be drawn, repaid, and redrawn up to an agreed limit, giving far greater flexibility for ongoing acquisition without rearranging the entire facility each time.
How is the RCF limit determined?
The limit is set at 65% to 75% LTV of the aggregate open market value of the security pool, net of any existing senior debt. As new assets are added to the pool, the limit increases proportionally.
What is a property warehouse line?
It is a revolving facility used by a lender or property business to fund eligible assets, with availability linked to an agreed borrowing base rather than to an individual transaction.
Can a new lender obtain a warehouse facility?
Possibly, but the sponsor, underwriting framework, seed capital, operating platform and route to a credible track record become especially important. Funders also expect loan-level data, policies, forecasts and regular covenant reporting.
Can I use an RCF to buy at auction?
In principle yes. Auction purchases require completion within 28 days. If the RCF is established and the new asset meets the lender's criteria, drawing against it to fund an auction purchase is significantly faster than arranging a new mortgage.
Do I need to hold properties in a limited company to use an RCF?
Most RCF lenders require the portfolio to be held in a limited company or LLP structure. Personally-held portfolios are generally not eligible. We can advise on structuring options if needed.
Can you build the financial model for managing the RCF?
Yes. Unicorn Capital Advisory builds bespoke RCF financial models as part of every mandate, covering drawdown planning, borrowing base calculations, ICR testing, and portfolio-level scenario analysis.
Offices
Registered and North of England office: Ayrshire Lodge, Brass Castle Lane, Nunthorpe, Middlesbrough, TS8 9EB.
London office: 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
Telephone +44 7746 212528. Email som@unicorn-commercial.co.uk
Unicorn Capital Advisory is a trading name of Unicorn Capital Advisory LLP (LLP No. OC459692). Finance is arranged for business purposes only and is not regulated by the Financial Conduct Authority.
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