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, tracker and fixed rates, with interest only products available too.
Want to start your search? Simply call our friendly team on 0800 032 4646.
Loans are secured - your home may be repossessed if you do not keep up repayments.
Why might I choose a buy to let secured loan?
Finding the right financial product is all about determining what is important to you and your circumstances.
Here are the key benefits of a secured loan and therefore why you might choose this funding option:
- Further Borrowing - You can get extra funds to help with your plans, without disturbing your current mortgage.
- Flexible criteria - Using a property as security means that lenders can be more flexible, so there are products available that can help customers in most circumstances.
- Use a Property Portfolio - With a buy to let secured loan, you can use your whole property portfolio to raise funds, it doesn’t just need to be secured on one house.
- Use an Unencumbered Property - Even properties where the mortgage has been paid off can be used. In fact, all property types and constructions are considered.
- LTVs - Borrow up to 75% of the property value
- Affordability - Can be based on your rental income, which means that non-working customers can find a solution OR if your rental income is insufficient then your Employed / Self-employed income can be used too.
- Most credit profiles accepted - Including those with missed or late payments on loans, credit cards and mortgages, accounts that are in default, outstanding CCJs, in a debt management plan and even discharged bankrupts.
- All loan purposes considered - These loans can be used for any legal purpose including: refurbishments, debt consolidation, property purchase / deposit, lease extension, tax bills, business investment and home improvements.
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.
What is a buy to let secured loan?
A buy to let secured loan is a funding option, which uses a property you own as security. You can use any rental property you own, or even a portfolio of properties.
Essentially, it is a loan that is taken out in addition to your existing mortgage. This means that your current mortgage will be undisturbed. However, we also have solutions available that can help you raise funds to get your first buy to let property.
Securing a loan against a property may mean that lenders are more flexible with their criteria. So, you may find that you have a better chance of getting accepted, may get a lower interest rate and could even borrow a larger amount of money.
Over the last 30 years, our team of experienced advisors have been working and developing relationships with a wide panel of specialist lenders, to provide a range of secured products to people across the UK.
So, if you need a buy to let secured loan to help with funding your plans, we may have the solution for you. We will work with you to understand what your needs are and find a product that meets your requirements.
With access to a wide variety of flexible products with fixed, tracker and variable rates, there is a solution available which can help people in most circumstances.
What can I use a buy to let secured loan for?
Secured loans are extremely versatile, which means they can help people with a number of purposes. In fact, they can be used for any legal purpose.
Usually, these loans are taken out to help with debt consolidation or funding home improvement projects. But, they can also be helpful for purposes like raising funds to pay a tax bill or funding business / property purchases.
Many landlords may choose to use this type of funding to expand their property portfolio or to renovate their existing houses.
At The Loans Engine, we have access to a variety of secured products, which can help people with achieving a wide range of business or personal goals.
When to use a secured loan for buy to let?
There are a number of times when these loans could be a useful financial solution for you.
- 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.
- 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 want to purchase a second property or consolidate your current credit commitments into one lower monthly payment.
- 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.
- Flexible repayment terms – Some people like to repay their loans back over a longer period, to reduce their monthly outgoings. With a buy to let secured loan, terms are available up to 30 years, giving people complete flexibility over their repayments.
How do I apply for a buy to let secured loan?
Applying for this type of loan is easy. Simply, call our friendly team on 0800 032 4646 and they will guide you through the process.
Here is an overview of the process:
- First, you need to decide how much you would like to borrow and over how long.
- Call our experts on 0800 032 4646 to make an enquiry. You will need to speak with one of our team so they can understand your needs and specific circumstances and find you a suitable financial solution.
- Our team will then search a range of products to find the right financial solution for you.
- Our advisors will discuss the loan with you, ensuring that you understand the costs and relevant criteria, to help you make an informed decision.
- Next, you decide whether the loan matches your needs and if you would like to proceed with the application.
Our customer’s needs are always our main priority, so the team are on hand to help at every stage of the process. Should any worries or problems arise, they are just a phone call away.
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.
Frequently Asked Questions - Buy To Let Secured Loans
Can I borrow money against my buy to let property?
Yes! You have the option of securing your loan against any property you own. So, you have the flexibility to use either a residential property, or any other property you own.
What can a buy to let secured loan be used for?
These loans can be taken to help with a wide variety of purposes. They are most commonly taken out to buy another property, either outright or to obtain deposit funds to enable a purchase, also property improvement projects, debt consolidation or any other legal purpose you can think of.
If you are a landlord looking to grow or improve your buy to let portfolio, your loan could also be used to help fund further property purchases or refurbishment projects.
Am I eligible?
To be eligible for a buy to let secured loan, you must be aged 18-85 and own a buy to let property.
How do you get a loan on a rental property?
Getting one of these loans can be achieved by going to lenders, brokers or banks.
Qualifying criteria may range with each and so it’s important that you research the different products that are available to find one which fits your plans.
How much could I borrow with a rental property loan?
Loan sizes can vary with different lenders and are influenced by:
- The level of rental income your receive vs the mortgage payments on the property
- The amount of any other additional sources of income
- Your credit history
- The amount of equity in your rental property
What are the repayment terms on a buy to let second charge?
Similar to loan sizes, the repayment terms can also vary depending on how long you need the loan for and which provider you decide to go with.
There is the option for a longer or a shorter repayment period, so you can find an option that works well for you.
If you speak with one of our mortgage advisors, they will be able to arrange this all on your behalf.
Is a buy to let second charge the same as a buy to let secured loan?
Yes, they are the same thing. Both types take a rental property you own as security, which means it could be repossessed should you fail to meet your repayments.
In doing this it can bring benefits which might include a larger loan size, increased chance of acceptance and potentially even lower interest rates.
What our customers say about us
"Would recommend, felt informed throughout the procedure."
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30 Mar 2022
"Excellent service with knowledgeable experts that communicated all the details we need to know in order to make an informed decision."
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25 Mar 2022
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24 Mar 2022
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