Buy To Let Secured Loans
Yes, a secured loan can be secured against a rental property that you own, or even a portfolio of properties.
Homeowners can borrow up to £1 million, 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.
Loans are secured - your home may be repossessed if you do not keep up repayments. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
Why might I choose a buy to let secured loan?
Finding the right financial product is all about determining what is important to you.
Here are some of the benefits of secured loans and therefore why you might choose this 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 situations.
- Use a property portfolio - With a buy to let secured loan, you can use your whole property portfolio to raise funds. It does not 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 90% of the property value. Or 70% in Northern Ireland.
- Affordability - This can be based on your rental income, which means that non-working customers can find a solution. Or if your rental income is insufficient, 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. However, the options available may be more limited.
- 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.
To qualify you must meet the following criteria
- be a UK resident and own your own property
- be aged 18-85 with a minimum income of £15,000
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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.
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.
However, it’s important to remember that your property could be at risk of repossession if you do not keep up with repayments.
Over the last 35 years, our experienced advisors have been developing relationships with a wide panel of specialist lenders. The aim is to provide these 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 your needs and find a product that meets these.
With access to a wide variety of flexible products with fixed, tracker and variable rates, there is a solution available that can help landlords in most circumstances.
What can I use a buy to let secured loan for?
Secured loans are versatile, which means they can help people with several 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 products, which can help people with achieving a range of business or personal goals.
When to use a secured loan for buy to let?
There are times when these loans could be a useful financial solution for you. These are:
- If you are trying to avoid exit fees – Remortgaging is another common method that can be used to get extra funds. However, some providers may charge early repayment fees to do this. In this case, it may be more useful to use a buy to let secured loan for the extra 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 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 may 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 this option.
- Flexible repayment terms –With buy to let secured loans, terms are from 3 to 30 years, giving people complete flexibility over their repayments.
Classifications of secured loans for buy to let
There are two 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). This helps to protect you against bad advice and mis-selling, among other things.
How do I enquire?
We want to make the process of applying as smooth as possible. Here are the main steps involved in our application process.
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Step 1: Submit an enquiry
Fill out our enquiry form online or call us to speak directly to one of our advisors.
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Step 2: Speak to the team
After reviewing your enquiry, one of our experts will call you to discuss your situation.
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Step 3: We'll handle the rest
If we find you a product that fits your needs and you're happy, we'll take care of the rest for you.
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Step 4: Completion
Once all of the paperwork is completed, you will receive your funds.
What our customers say about us
"Very smooth communication. Luke was amazing and very helpful person. "
25 Oct 2024
"The process was handled professionally throughout. Support was provided at every stage by each case handler. Excellent service"
23 Oct 2024
"Great Company 5*** Brilliant service. Also happy to answer questions or give you a update. Mendip and Thisara were a great help."
18 Oct 2024
"Excellent service from my initial contact with Tom through to processing the finance to completion with Emily. Professional and friendly service with prompt reply's to my correspondence every time. Highly recommended."
16 Oct 2024
Frequently Asked Questions - Buy To Let Secured Loans
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Can I borrow money against my buy to let property?
Yes! You have the option of securing your loan against any property you own. You have the flexibility to use either a residential property, or rental property you own.
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What can a buy to let secured loan be used for?
These loans can be taken out to help with a wide variety of purposes. They are most commonly used to buy another property, either outright or to get a deposit for the purchase. Property improvement projects and debt consolidation are two other common purposes.
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.
See how we helped a client access this solution to fund property renovations in this case study.
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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. The loan will be secured against your property, so if you are not a homeowner you will be unable to get this option.
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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, so it is important that you research the different products available to find one that fits your plans.
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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 you receive vs the mortgage payments on the property.
- The amount of any other additional sources of income you have.
- Your credit history.
- The amount of equity in your rental property.
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What are the repayment terms on a buy to let second charge?
Similar to loan sizes, the repayment terms can also vary. It depends on how long you need the loan for and which provider you decide to go with.
There is the option for a longer or 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.
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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.
Doing this can bring benefits, which might include a larger loan size, increased chance of acceptance and possibly lower interest rates.
Read more in our blog buy to let second charge mortgages explained.
