Second charge buy to let loans – solving problems where other mainstream lenders can’t
The buy to let second charge market place provides a range of solutions for borrowers who have perhaps been refused a mortgage by their current lender or high street bank.
Popular second charge lenders like Together Money, Step One Finance and Shawbrook Bank are often more flexible in their application criteria and can step in where applicants don’t meet the normal main stream lenders criteria. Landlords can borrow up to 75% loan to value against their buy to let investments with loan repayment terms from 3 – 30 years from a wide range of lenders in this space.
With the help of Simon Nicholson and the second charge loan brokers at Lending Expert here we can take a look at some buy to let case studies, key facts, and features of these types of loans on the market today:
- Buy to let Loans accepted for semi-commercial property, flats above shops, non-standard construction homes, HMO and student let properties.
- First and second charge options
- Rates from 75% LTV
- No proof of income or earnings required
- Proof of rental income from AST acceptable
- Ex pat applications welcome
- No early repayment charges (ERC’s)
- Raise capital against multiple buy to let properties and portfolios
- No minimum property valuation
- Loans for Self-employed and professional landlords
- Applicants with some adverse credit welcome including CCJ’s and defaults
- Avoid ERC’s from a remortgage and keep your mortgage deal in place
- Loans issued for pensioners and those beyond normal retirement age
- Flexible income requirements such as: commission payments, 100% rental profit, tax cerdits, child maintenance and benefits,
For further key facts and application criteria on these products see: Secured Loans against buy to let rental property – what you need to know from Lending Expert published on Landlord Today.
What lenders are available?
There are a wide selection of lenders who offer secured loans on buy to let properties, many of which however only accept applications via their approved brokers and intermediaries. Below is an example of some of the most popular and widely known lenders on the market today:
- Paragon Bank Loans
- Together Money Loans
- West One Loans
- Shawbrook Bank Loans
- Masthaven Bank Loans
- Prestige Finance Loans
- Optimum Credit Loans
- United Trust Bank Loans
- Norton Finance Loans
- Central Trust Loans
- Clearly Loans
- Stepone Finance Loans
- Spring Finance Loans
- 1st Stop Homeloans
- Evolution Money Loans
Buy to let case study example:
Mortgage Enquiry Which Completed in 5 Working Days
Problem – Our client wanted to borrow £60,000 on his unencumbered buy to let terraced property so he could carry out refurbishments to a number of his other buy to let investment properties. He had only been self-employed for just over 12 months and had no proof of income other than a copy of the assured hold tenancy agreement. He also had been recently bereaved and as a result he had some late and missed credit card payments too. He had searched the internet and could not be helped until he approached one of our directly authorised brokers who introduced the enquiry to Lending Expert.
Solution – After carrying out research including a soft quotation credit search the enquiry was referred to one of our buy to let lenders based upon the merits of the case. The lender approved the referral within 30 minutes for the amount requested. Lending Expert paid for the valuation fee so the client did not have to pay any upfront fees as a mortgage deed was signed which meant no conveyancing costs were incurred.
Outcome – The client completed within 5 working days and could now carry out his refurbishment programme immediately ensuring that he could let out a couple of his properties sooner rather than later generating extra rental income for his business.
