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Secured loans against BTL rental property – what you need to know

26 June 2018 6810 Views
Secured loans against BTL rental property – what you need to know

Historically secured loans against buy to let property were seen as a last chance option for a landlords borrowing needs. In the early days the rates were much higher and often carried hefty early repayment charges. However, with rates now starting from just 3.65%, and no ERC’s, the market has improved massively with lending criteria to suit most types of borrowers. Funding can be arranged quickly on rental properties with flexible lending decisions on HMO’s semi commercial buildings, flats above shops and none standard construction buildings.

Lending Expert can assist in many scenarios when a second charge loan could benefit yourself or a client when looking at capital raising. BTL second charge secured loans can offer a welcomed haven against some of the restrictions on the first charge buy to let market.

Characteristically, we see secured loans for customers who are looking to:

•             Retain their current low-rate mortgage / interest-only mortgage.

•             Raise capital on BTL rental properties.

•             Circumvent the ERCs that their re-mortgage may be subject to.

•             Capital raise however their adverse credit means they are unable re-mortgage on the high                 street.

•             Raise funds on a term loan that would take them beyond normal retirement age.

•             Avoid paying upfront fees or costs for valuation.

•             Receive the funds sooner than a standard re-mortgage could offer.


Income considered on:

•             Commission/Overtime/Bonus's.

•             100% of Rental profit.

•             100% of Tax credits can be used, if the applicants are going to be receiving them for the                     next 3 years.

•             Benefits Accepted including: child benefit and child maintenance

•             No lending into retirement requirements

•             No monthly payments are deducted for overdrafts, utilities or CCJs & Defaults

•             No LTI restrictions


Self-employed landlords considered

We'll consider applications from anyone who has been self-employed from 12 months – no problem. We’ll also consider pensioners, unemployed applicants and those with no proof of income or wish to secure a loan based upon the rental income only.

We have lenders that will use Accountants References, SA302's or Accounts to verify income for Self Employed applicants.

We are currently offering 1st & 2nd charge Buy to let loans with no stress testing.


Accepted Applicant Types

  • Limited Company Applications

  • Portfolio landlords accepted

  • Expat & applicants without permanent rights to reside in the UK accepted

  • Employed and self-employed applicants

  • Unemployed applicants

  • Adverse credit applicants with CCJ’s, bankruptcy, missed payments and defaults.

  • Pensioners, the over 65’s and retired who receive pension income only (https://www.lendingexpert.co.uk/loans/secured/pensioners/)

  • No minimum valuation   


Lendingexpert.co.uk offer buy-to-let secured loans and finance solutions from £5,000 to £10,000,000 for a wide range of reasons including raising money for business purposes, buy to let rental property, debt consolidation and making home improvements. Contact us for a quote online or pick up the phone to speak with a CeMap qualified advisor on 0161 820 8099.





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