Cross-collateralisation
One loan secured by multiple properties — efficient in theory, painful in practice.
What is Cross-collateralisation?
Cross-collateralisation is when one or more properties secure multiple loans — linking them together. Common with lenders who default to this structure for investor clients with multiple properties.
Why it matters for you
Cross-collateralisation feels efficient but creates real problems: selling one property triggers valuations on all, refinancing becomes harder, and a single default exposes every linked property. Most portfolio strategists recommend standalone loans — each property secured only by itself. Already cross-collateralised? Unwinding it is often worth the admin.