Buy-to-Let Secured Loans

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

Why Choose a Buy-to-Let Secured Loan?

If you need to raise capital quickly but don’t want to sell a profitable asset, a buy-to-let secured loan could be the ideal solution. Often referred to as a second charge mortgage, these loans sit behind your existing mortgage. This means your original loan remains untouched, which is an essential benefit if you currently enjoy a low interest rate that you don’t want to lose through remortgaging.

Unlike an unsecured loan, which often has lower lending limits and shorter terms, a secured loan allows you to borrow larger sums by using your rental property as collateral. This provides the flexibility to grow your portfolio even if you have reached a borrowing limit with another lender.

Free Up Cash When You Need it Most

If you’re looking to free up cash quickly without selling an investment property on, a secured loan could be the answer. Secured loans for Buy-to-Let property sit behind any existing finance as a second charge and will use any property you own as security.

This means your existing mortgage or loan will not be affected in any way, which is key if you have a low interest rate, and you can secure money even if you’ve maxed another lender’s limit

What is a buy-to-let secured loan?

A buy-to-let secured loan is a way for landlords to borrow money against the equity in an investment property. As the debt is secured against the property, lenders are often more willing to offer higher amounts and more flexible terms than they would for personal loans.

How is a secured buy-to-let loan different from a normal buy-to-let mortgage?

A standard buy-to-let mortgage is usually the primary (first charge) loan used to purchase a property. A secured loan is a “second charge,” meaning it runs alongside your current mortgage. It allows you to access equity without the high costs or early repayment charges often associated with full remortgaging.

What does ICR mean?

ICR stands for Interest Cover Ratio. It’s a calculation used by lenders to ensure that the rental income generated by the property is sufficient to cover the mortgage payments and associated costs.

Can I use my own income if my rental income doesn’t cover the shortfall?

Yes, many lenders now offer “top slicing.” This allows you to use your personal earned income to bolster the application if the rental income from the property alone doesn’t meet the lender’s required ICR.

What is an accidental landlord?

An accidental landlord is someone who has ended up owning a rental property they didn’t originally buy as an investment; for example, through inheritance or being unable to sell a previous home. We offer specialist buy-to-let secured products specifically designed for those in this position, including regulated buy-to-lets.

Do lenders consider applications without tenancy agreements?

While many lenders prefer to see a formal AST (Assured Shorthold Tenancy), some specialist lenders will consider applications based on the estimated rental value or for properties currently undergoing refurbishment before being let.