Buy To Let Secured Loans

YES, a Secured Loan can be secured against a rental property that you may own, or even a portfolio of properties.

Homeowners can borrow up to £500,000 with terms available up to 30 years.

We offer competitive variable or tracker rates, with fixed rate and interest only products also available.

As well as the usual loan purposes like consolidation or home improvements a borrower can raise funds to pay a tax bill, loans for a business or a property purchase. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Loans are secured - your home may be repossessed if you do not keep up repayments.

Why opt for a second charge mortgage?

• Further Borrowing - avoid disturbing your existing mortgage
• Flexible criteria - products available for most customers circumstances
• Use Property Portfolio - funds can be raised using multiple properties
• Use Unencumbered Properties - all property types and constructions considered
• LTVs - up to 75% of the property value
• Affordability - can be based purely on rental income so can assist non-working customers OR if rental income is insufficient Employed/ Self-employed income can be used too
• Most credit profiles accepted - missed / late payments on loans, credit cards and mortgages, accounts that are in default, outstanding CCJs, in a Debt Management Plan, even Discharged Bankrupts
• All loan purposes considered- Refurbishment, Debt Consolidation, Property Purchase/Deposit, Lease Extension. Tax Bill, Business Investment

Classifications of secured loans for buy to let

There are 2 classifications for Buy to Let Secured loans:

Unregulated BTL – a property you purchased for private rent; these loans are not regulated by the FCA.

Consumer BTL – a property you previously occupied or you inherited, these loans are regulated by the FCA.

Regulation under the FCA aims to provide consumers with protection including being covered by the Financial Services Compensation Scheme (FSCS), which helps to protect you against bad advice and mis-selling, among other things.

When to use secured loans for buy to let?

There are a number of different times when these loans could be a useful financial solution to you.

1. If you are trying to avoid exit fees – Remortgaging is another common method that can be used to get extra funds. However, some providers will charge exit fees to do this. In this case, it may be more useful to use a buy to let secured loan for additional borrowing and leave your current mortgage alone.
2. Plans which need substantial funds - These loans usually allow you to borrow a larger amount of money, compared to other unsecured funding options. So, it may be suitable to use these loans when you have plans that need a large level of funding. For example, if you are wanting to purchase a second property or consolidate multiple lines of debt.
3. Complex circumstances – The criteria to get a secured loan on a buy to let property is typically more flexible in comparison to other types of loans. This means that you have a higher chance of being accepted. So, if you have complex circumstances you may have a better chance of getting the finance you need with a secured loan.
4. Flexible repayment terms – Some people like to repay their loans back over a longer period, to reduce their monthly outgoings. With a secured loan, repayment terms are available up to 30 years, giving people the option to have a long repayment period. So, if you need additional funds and want a flexible repayment term, then a buy to let secured loan may be the right solution for you.

How do I compare rates?

For a free, no obligation quote call us on FREE on 0800 032 4646.
Don’t forget – making an enquiry will not affect your credit rating in any way!