If you are looking release equity within your buy to let rental property and don’t wish to remortgage from your existing mortgage deal then this article may help. Here we discuss how a BTL secured loan could provide an alternative and flexible solution to raising the funds you need quickly.

Dave Beard, Lending Expert from second charge mortgage specialists Feasible discuss some of the details of the loan products and how they can help UK landlords with their funding needs.

What is a secured loan?

A secured loan is otherwise known as a second charge mortgage, or commonly referred to as a homeowner loan. It is an additional second property loan paid off alongside your existing first charge mortgage. Like your mortgage it is secured against your property and the amount you can borrow will depend upon the available equity in the property. These types of loans can be paid off over a longer period of time with repayment terms of up to 30 years with some lenders. They are popular with borrowers who wish to take out larger loans that are not available via the unsecured personal loan route.

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Where can you get them?

Second charge loans are mostly only available from lenders via brokers with only a few lenders in the market allowing customers to apply direct. There are currently around 25 mainstream second charge lenders in the market with well-known names such as Masthaven Bank, Together Money and Shawbrook Bank who provide these types of loans via intermediaries, specialist brokers and mortgage networks.

How much can you borrow?

Secured loans are available to homeowners from £5,000 – £2.5 million and can generally be arranged quickly against individual rental properties and also larger portfolios including HMO, student accommodation and holiday lets. The exact much you can borrow will depend on your home equity and affordability of the loan.

What are the features and benefits?

While each lender has its own product specifications and lending requirements here is a quick list of product features and benefits from across a range of lenders with the market place.

  • Loans at 75% loan to value for BTL
  • Long repayments terms over 3 – 30 years
  • No ERC’s – early repayment charges
  • None standard construction homes accepted including semi commercial property, flats above shops and high rise apartments
  • Applicant landlords without proof of income accepted
  • Self-employed, contract workers and professional landlords accepted
  • Loans for pensioners and retired with benefit and pension income accepted
  • Buy to let first charge solutions for applicants who do not fit mainstream lender requirements.
  • Solutions for landlords with bad credit issues including defaults, CCJ’s, bankruptcy, debt management
  • Suitable for ex-pats
  • Limited company applications welcome
  • No minimum property valuation required
  • Ability to maintain current mortgage arrangements
  • Flexible solutions for landlords who have been refused a mortgage or loan elsewhere via a mainstream lender
  • First time landlords accepted
  • Professional and portfolio landlords with multiple buy to lets
  • Access to exclusive deals and rates
  • Options for variable or tracker rates, with Fixed Rate and Interest Only products also available from our panel

What can loans be used for?

Secured loans can generally be used for any legal purpose with the popular options being to fund further property improvements, fund other BTL properties and to consolidate existing debt and credit commitments.

Want to learn more?

Feasible.co.uk are credit brokers who specialise in Second Charge Mortgages and Homeowner Loans for buy to let property. To find out how much you can borrow secured against your buy-to-let property, or if you need some friendly advice then please click here for a loan quote today.

©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law, always seek professional advice.

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